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Dear All,
Can you please make me aware about the kind of accounts to be maintained by a start up company.
we are software company with 10 employees as head count. I am not really aware of maintaining accounts.Any help would be greatly appreciated.
Also please help with the tax and do we have to approach Auditor, what questions should i ask the auditor.
Regards,
Saujanya
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Dear Saujanya, A lot of accounts need to be maintained. All this will have tax implications. In case of any specific doubts call me 09020709977 Tks and Regards Ramachandran
Hi Saujanya,
First of all your company should appoint 1 auditor. Meanwhile auditor will suggest for tax planning, payroll & all financial avenues.
In addition to that you have to recruit 1 accountant who can take care of all company accounts.
Regards,
Sarita
Dear Saujanya Please message your email id to 09891149475. I will send you detailed list with guidelines. Regards Anil
Dear All,
soon i will be joining a logistics(freight forwarding ) company in Muscat. i have to handle accounts and operations of the co. could somebody guide me by providing some materials details on how the process, works how the accounts has to be mentioned and so. let me have it in the Indian context if there is no foreign accounting materials. pls do help me out.
my email:
I would be very grateful to you....
PRADEEP PALAN
Hi Saujanya,
We are also a IT consulting startup with less than 10 employees. You can get in touch with me at and we can have a teletalk accordingly to guide you.
Rgds,
Kapil Bankeraika
Books of accounts including vouchers and receipts are required to be maintained under different statutory laws – Income Tax Act, Companies Act 2013 and GST Act. Books to be maintained, retention period and compulsion requirements are different under all the 3 laws.
Under Income Tax Act
If the sale/turnover/gross receipts from the business or profession is more than Rs. 25,00,000 or the income from business or profession is more than Rs. 2,50,000 in any of the 3 preceding years, then books of accounts will be compulsorily maintained.
Following professions are covered under this provision –
• Legal
• Medical
• Engineering
• Architectural
• Accountancy
• Technical consultancy
• Interior decoration
• Authorised Representative (one who charges fees for representing someone before tribunal or any authority)
• Film artist (producer, editor, actor, director, music director, art director, dance director, cameraman, singer, lyricist, story writer, screenplay or dialogue writer and costume designers.
• Company secretary
Thus, if the above-mentioned professions have an income of more than Rs. 2,50,000 in any of the 3 preceding years, they need to maintain books of accounts. In case of a new profession also, if the income is expected to be more than Rs. 2,50,000, the professionals should maintain books.
Books of accounts as per Rule 6F
• Cash Book
• Journal
• Ledgers
• Copies of bills or receipts
• Daily cash register with details of patients, services rendered, fees received and date of receipt (persons carrying on medical profession)
• Details of stock of drugs, medicines, and other consumables used (persons carrying on medical profession)
If the income isn’t more than Rs. 2,50,000 in any of the 3 preceding years or not expected to be more than Rs. 2,50,000 in case of a new profession, then also books should be maintained. However, books, in this case, haven’t been specified – so any books can be maintained but it should be such that ATO can calculate the income.
For how long should the books be maintained?
Books should be maintained for a period of 6 years from the end of the relevant year.
Under Companies Act
Every company has to maintain books of accounts, at the registered office or any office that board of directors may decide. If the company is maintaining books at an office other than the registered office, it has to intimate the same to RoC. The company can maintain the accounts electronically also.
For how long should the books be maintained?
Books should be maintained for a period of 8 years from the end of the relevant financial year.
Books of accounts to be maintained
• Cash flow statement
• Records of sales and purchases,
• Records of assets and liabilities
• Items of cost
• Deeds, vouchers, writing, documents, minutes, and registers whether in physical or electronic mode
Under GST Act
Every registered person has to maintain GST records at the principal place of business.
Records to be maintained
• Production or manufacture of goods
• Inward and outward supply of goods or services or both
• Stock of goods
• Input tax credit availed
• Output tax payable and paid and
• Other particulars as may be prescribed
For how long should the records be maintained?
Books and records should be maintained for 6 years from the last date of filing of the annual return (31st December) for that year.
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