1. What are the documents that you need to keep for records after VAT registration?
Following notices, documents and details are needed to be kept for record:
- Record of receipt or payment of cash in business accounts,
- VAT bills and other summary tax invoices that you have issued,
- VAT bills and other summary tax invoices that you have received,
- All documents relating to imports and exports that you have done,
- Any documents that may prove imbalance in the amount of goods and services that you have either purchased or sold,
- All debit and credit notes and related other documents,
- VAT accounts as per Schedule 7, purchase and sales account as per Schedule 8 and 9 of VAT Rules.
2. What is meant by certification of books of account and when should it be done?
It refers to certification of your purchase and sale account that has been maintained as per Schedule 8 and 9 of the VAT Rules by the tax officer. You should not use your accounts without certifying. But if you have been approved to issue electronic invoices, you do not need to certify your accounts as the sale account is automatically prepared.
You should compulsorily certify serial numbers of purchase and sale accounts for every fiscal year. For those submitting monthly tax returns, you should certify your books of account within Shrawan. For those submitting tax returns once in two months, you should certify your books of account within Shrawan and Bhadra. For those submitting monthly tax returns once in four months, you should certify your books of account within the time period of Shrawan to Kartik.
You need to apply for new certification if your certified books are used completely before the fiscal year ends. For every fiscal year you will be needing new certification.
3. What happens if you do not certify your accounts?
You will be fined an amount of NRs 10,000 if you do not certify your accounts.
4. Should you keep your certified book of accounts of last fiscal year?
You should keep your certified books of account safely for six years.
5. What is the procedure for electronic record keeping of accounts?
Firstly, you need to submit an application stating clearly the computer software that you will be using for maintain record of accounts. You can use electronic record keeping once you get the approval only. You should adjust your software with the required format of purchase account, sale account and tax invoice. Invoice once issued should be made undeletable. If you need to make amendments, it should be adjusted such that amendments can be done only through debit or credit notes.
6. What kinds of record should be maintained in the books of account?
You should maintain your book keeping immediately after receiving purchase receipt and issuing sale bills. Every payments made with receipt or invoices for purchases should be recorded in the purchase account. However, payments without bills like salary, wages are not required to be recorded.
You may be fined NRs 10,000 if you have not maintained your account details while tax officer come for observation. You may even be fined by tax officer an amount of NRs 20,000 for each time you do not allow for observation.