yogesh (Student CA Final ) (32 Points)
18 April 2014is there any provision as per new companies act for companies to maintain their books at a server located in india and we also have to inform ROC about that.
and any thing related to cloud computng as per new companies act.
please also mention section along with answer
thanks
The Company Law Desk
(CA Practice )
(103 Points)
Replied 19 April 2014
Sec 128 of Companies Act 2013 provides that the company may keep such books of account or other relevant papers in electronic mode in such manner as may be prescribed.
And as per rules of Chapter IX notified in this regard by MCA
The company is required to intimate to the Registrar on an annual basis at the time of filing of financial statement-
(a) the name of the service provider;
(b) the internet protocol address of service provider;
(c) the location of the service provider (wherever applicable);
(d) where the books of account and other books and papers are maintained on cloud, such address as provided by the service provider.
For the purposes of this rule, the expression "electronic mode" includes “electronic form” as defined in clause (r) of sub-section (1) of section 2 of Information Technology Act, 2000 (21 of 2000) and also includes an electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000) and “books of account ” shall have the meaning assigned to it under the Act.
Thus it is required to mention these technical details at the time of filing annual books of accounts with ROC.
Hope your query is addressed well.
For further queries & clarifications visit www.thecompanydesk.webatu.com
Or write us at thecompanydesk @ gmail.com
The Company Law Desk
manish kedia
(yet not)
(319 Points)
Replied 19 April 2014
Manner of books of account to be kept in electronic mode.- (1)
The books of account and other relevant books and papers maintained in
electronic mode shall remain accessible in India so as to be usable for
subsequent reference.
(2) The books of account and other relevant books and papers referred to
in sub-rule (1) shall be retained completely in the format in which they
were originally generated, sent or received, or in a format which shall
present accurately the information generated, sent or received and the
information contained in the electronic records shall remain complete and
unaltered.
(3) The information received from branch offices shall not be altered and
shall be kept in a manner where it shall depict what was originally
received from the branches.
(4) The information in the electronic record of the document shall be
capable of being displayed in a legible form.
(5) There shall be a proper system for storage, retrieval, display or
printout of the electronic records as the Audit Committee, if any, or the
3
Board may deem appropriate and such records shall not be disposed of or
rendered unusable, unless permitted by law:
Provided that the back-up of the books of account and other books and
papers of the company maintained in electronic mode, including at a place
outside India, if any, shall be kept in servers physically located in India on
a periodic basis.
(6) The company shall intimate to the Registrar on an annual basis at the
time of filing of financial statement-
(a) the name of the service provider;
(b) the internet protocol address of service provider;
(c) the location of the service provider (wherever applicable);
(d) where the books of account and other books and papers are
maintained on cloud, such address as provided by the service
provider.
Explanation.- For the purposes of this rule, the expression "electronic
mode" includes “electronic form” as defined in clause (r) of sub-section
(1) of section 2 of Information Technology Act, 2000 (21 of 2000) and
also includes an electronic record as defined in clause (t)
of sub-section
(1) of section 2 of the Information Technology Act, 2000 (21 of 2000) and
“books of account ” shall have the meaning assigned to it under the Act.
manish kedia
(yet not)
(319 Points)
Replied 21 April 2014
Maintenance of books of accounts in electronic form is optional (Refer 2nd proviso to Section 128(1) of Co Act 2013. The detailed Rule is available in Companies (Accounts) Rules, 2014.
Rule 3(6) mandates intimation to ROC annually where the books of account and other books and papers are maintained on cloud, such address as provided by the service provider.
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