Books of a/c

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prakash

prakash (Querist)

30 October 2015 All dear sir , if a pvt.co. has sales only 20- 30 lakh then is it necessary to maintain books of a/c ?

Amol S Joglekar

Amol S Joglekar (Expert)

30 October 2015 yes. The private companies accounts are subject to statutory audit under Companies Act. And unless you write the books of accounts, the auditor may NOT be able to audit the same.

prakash

prakash (Querist)

30 October 2015 But sir we have 3 co's in same business line and maintaining only two co. A/c . As 3rd co. Sales is only 12 to 18 lac so not maintaining 3rd co. Books of a/c properly .

Amol S Joglekar

Amol S Joglekar (Expert)

30 October 2015 You need to do it dear, if you are sure of your turnover, then better go for partnership or sole proprietory form of organisation.
When you have selected to be a pvt ltd company, certain things are MUST. like books of accounts. You can keep the same in electronic media.

prakash

prakash (Querist)

30 October 2015 Sir You mean to say in a firm having turn over 15-20 lakh. Then it is not necessary to maintain books of a/c .

Amol S Joglekar

Amol S Joglekar (Expert)

30 October 2015 Keeping accounts is inevitable for any form of business. Keeping accounts as per the STANDARD form is what is required for Pvt ltd company.
In the case of sole proprietory and firm opting for 44AD, books of accounts are not required by Income Tax.
So yo say, the provisions as to keep the accounts are bit soft as per the form of organisation.

prakash

prakash (Querist)

30 October 2015 Thank you sir for your kind help.

Amol S Joglekar

Amol S Joglekar (Expert)

30 October 2015 You are most welcome.
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