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Hard Copy of invoices

Prathyusha Varma (ArticleShip) (393 Points)

26 April 2021

Hello Team,

Is it mandatory to collect hardcopy of invoices from vendor despite of recieving softcopies ?

If Yes, can you please enlight me under which law we need to maintain hardcopies ?

Thanks in advance

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6 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 26 April 2021

1) I think nowadays documents like invoice/BE, TDS certificate etc (original/signed/hard-copy) have lost their sanctity, in respect of most of the transactions, though not explicitly mentioned in the respective statutes. 2) For example, in case of GST invoice, since the transaction are uploaded by the other party, I think insisting on hard copies would no longer be a necessity. However, if transactions are such that they cannot be verified by this method, then I think original, signed documents are required to be maintained. 3) This is very similar to TDS certificates as nowadays no one really asks for it as such transactions automatically get updated in 26AS. If transactions can be verified by other permissible means then I think soft copy would suffice. If we are able to maintain hard copies in most of the cases, exception with regard to soft copies (in some cases as above) is acceptable during audit too I think.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 26 April 2021

Agree with poornima

Prathyusha Varma (ArticleShip) (393 Points)
Replied 26 April 2021

So we can maintain softcopy of invoices? no need of hardcopy of books of accounts!

can someone give section reference any as per company act or income tax act

please this will help us

CMA Poornima Madhava (CMA) (13097 Points)
Replied 26 April 2021

I didn't say hard copy of invoices are not required to be maintained because I don't think such exemptions are explicitly mentioned in various statutes that you have referred to. All I said is there are other ways to verify transactions, so not having hard copy in a few cases may not pose a major issue.

Prathyusha Varma (ArticleShip) (393 Points)
Replied 26 April 2021

Yes I got your point Poornima, But did any law said to maintain books of accounts manually I mean hardcopies are needed for sure like that ! Can't we mantain them in soft copies ?

CMA Poornima Madhava (CMA) (13097 Points)
Replied 26 April 2021

Most of the statutes were made decades ago. So wherever the statute demands the maintenance of documents, it generally means hard copies (original and signed) only. Of late, digitization has been widely promulgated and exceptions have been introduced under some of the provisions of the law (for example, now books of accounts can be maintained electronically).

I am not aware of explicit provisions allowing soft copies of invoices as such. Am sure someone who knows about it can help in this regard.

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