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CA Intermediate · Taxation · Accounts and Records

Sunrise Traders, a registered person in Indore, has its principal place of business in Indore and also keeps stock at a godown in Dewas, both in Madhya Pradesh. The godown is declared as an additional place of business in its registration. Under Section 35 of the CGST Act, 2017, where must the books of account and other records be maintained?

Records must be kept at the principal place of business and also at every additional place of business shown in the registration. Sunrise Traders must therefore maintain its accounts at both Indore and the Dewas godown, since the law requires records at all declared places, not only the principal place.

  1. AOnly at the principal place of business
  2. BAt the principal place of business and at each additional place of businessCorrect
  3. COnly at the place where the proprietor ordinarily resides
  4. DAt the office of the jurisdictional proper officer

Explanation

Section 35(1) requires every registered person to keep accounts of stock, inward and outward supplies, input tax credit, output tax payable and paid, at the principal place of business as mentioned in the registration. The rules extend this to each additional place of business, so records at the godown must also be kept. Keeping them only at the principal place is incomplete.

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