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CA Intermediate · Taxation · Accounts and Records

Sundaram Traders, a registered person in Coimbatore, keeps its books of account at its godown in Tiruppur, which is not mentioned in its registration certificate. The owner says the principal place of business is enough. Under the CGST Act and Rules, what is the correct position?

A registered person must keep books and accounts at the principal place of business and at every additional place of business, and every place where they are kept must appear in the registration. A godown not declared would breach this rule.

  1. ABooks may be kept at any place in India without any intimation
  2. BBooks must be kept at the principal place of business and at every additional place of business, and each place where they are kept must be shown in the registrationCorrect
  3. CBooks need to be kept only at the place of the owner's residence
  4. DBooks may be kept only at the principal place of business, and godowns need not be shown

Explanation

Under section 35, every registered person must keep accounts at the principal place of business and at each additional place of business mentioned in the registration. A place where books are kept must therefore be declared. Option D ignores the additional places requirement.

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