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MSME books keeping

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Vijeesh Parapattil

105 Points Posted on 16 August 2020

Do MSMEs need to keep books of accounts?

Replies (2)

Quick Summary

This discussion clarifies whether Micro, Small, and Medium Enterprises (MSMEs) are required to maintain books of accounts. While the government offers certain relaxations, the necessity often depends on specific circumstances. For instance, if your turnover is below the prescribed limit under the Income Tax Act, you might not need to keep detailed accounts. However, if you are registered for GST, you must maintain accounts as mandated by the GST Act. Additionally, any other applicable legislation may also require you to keep specific records.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 16 August 2020

There are many relaxation given by government to MSME, Whether MSME required to maintain books of account or not, it's depends on case to case basis..
Like as per income tax Act, if your turnover or gross receipts is less than prescribed limit than your are not required to maintain books of account.
If you are MSME and registered under GST, than books of account, which requires to be maintained under GST Act, you have to maintain that much account and books.
If any other act required otherwise then also books of account required as per that act.
Yes, Some relaxation is their as against other enterprise, not all detailed but required as per law is to be maintained.