Govt Defers Implementation Of Necessary Use Of Transparent Accounting Software Until Future Year

In a reduction to companies across the spectrum, the authorities has extended deadline for required adoption of accounting software program possessing audit path of every and just about every transaction and having attribute to keep logs of edits.

As for each a new notification by the Ministry of Company Affairs (MCA), implementation of necessary use of accounting software program having Audit Trail as offered under proviso to Rule 3 of the Firms (Accounts) Regulations, 2014 has been deferred till 31 March 2022.

The modifications have been previously proposed to be implemented from 1 April 2021. But after acquiring several representations from many stakeholders expressing their inability to make rapid modifications in accounting software package, the govt made the decision to give just one much more calendar year to enterprises to put together for new accounting procedure that aims to verify manipulation and make sure utmost transparency in recording transactions.

The new MCA notification (Rule 3[1] of the Companies [Accounts] Policies, 2014) now reads: the publications of account and other applicable textbooks and papers managed in digital mode shall keep on being available in India so as to be usable for subsequent reference.

Offered that for the economic calendar year commencing on or soon after the 1st day of April, 2022, every single company which makes use of accounting application for protecting its books of account, shall use only these kinds of accounting software program which has a element of recording audit trail of every and every single transaction, generating an edit log of each transform made in guides of account along with the date when this kind of improvements were being created and making certain that the audit trail are not able to be disabled.

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