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CA Intermediate · Taxation · Accounts and Records

Sundaram Traders, a registered dealer in Coimbatore, maintains its books of account at its principal place of business. It also has an additional place of business in Salem where stock is kept. Under the CGST Act, 2017 read with the CGST Rules, where must the registered person keep its books of account and other records?

A registered person must keep books of account and other records at the principal place of business and at every additional place of business declared in the registration certificate. Stock-holding places such as the Salem godown must therefore be covered, and being shown in the registration is mandatory.

  1. AAt the principal place of business only, and the additional place need not be shown in the registration
  2. BAt the principal place of business and at every additional place of business mentioned in the registrationCorrect
  3. COnly at the place where the proper officer directs in writing
  4. DAt the residence of the proprietor, regardless of the registration details

Explanation

Every registered person must keep and maintain books of account and records at the principal place of business and at each additional place of business mentioned in the certificate of registration. Option A is wrong because the Salem place, being a place of business, is also required to hold the relevant records and must be shown in the registration.

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