Types of accounts to be Maintained by an advocate
Rohtash Babu Patel
(Querist) 08 January 2011
This query is : Resolved
Sir
i want to know how many type of accounts are to be maintained by an advocate, whether amount spent in purchase of old library could be put in office expenses
A V Vishal
(Expert) 08 January 2011
As per Rule 6F(2) the following books of accounts and documents are required to be maintained:
1) cash book,
2)Journal, if the accounts are maintained as per mercantile system of accounting,
3)ledger
4)carbon copies of bills, serially numbered and carbon copies or counterfoils of receipts issued in respect of sums exceeding Rs 25,
5)original bills for expenses exceeding Rs. 50 and payment vouchers for petty expenses. However in a case where the cash book maintained by the person contains adequate particulars in respect of the expenditure incurred, then vouchers are not necessary in respect of expenses upto Rs 50.
Books or books of accounts have also been defined u/s 2(12A) as including ledgers, day-books, cash books, account-books and other books, whether kept in the written form or as print-outs of data stored in a floppy, disc, tape or any other form of electro-magnetic data storage device.
Document has been u/s 2(22AA) as including an electronic record as defined in clause (t) of sub section (1) of section 2 of the Information Technology Act, 2000.
Rule 6F(5) provides that the books of accounts and other documents are to be kept for at least 6 years from the end of relevant assessment year. That means from the assessment year 2009-10 one should keep books of accounts upto the assessment year 2003-04 i.e. books of accounts of financial year 2002-03.
A V Vishal
(Expert) 08 January 2011
Purchase of library books for reference is asset and cannot be treated as revenue expenses.
PARVEZ RAFIQUE SHEKHANI
(Expert) 08 January 2011
Mr. Patel,
In addition to Expert Vishal, I would like to add that all expenses incured during practicing as an advocate/legal practice are allowable expenses. If old libery is considered as asset, then depreciation @ 100 % could be claimed for such books.
R.Ramachandran
(Expert) 08 January 2011
Dear Mr. Parvez,
I think you are confused.
If it is shown as expenses the question of depreciation would not arise.
Only if the cost of acquisition is shown as capital expenditure, the question of depreciation would arise.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 08 January 2011
