Independent Health Check up of Books of Accounts.

There are always 2 approach that are being followed:

1. Pro-Active or Precautionary

2. Reactive or Reaction

We always think that we should taken pre-cautionary measures when it comes to personnel Health but have we ever though on precautionary measure on Health Check up of yours books of accounts?

If not, this is the time to think on the same. 

Here are some of the benefits of Health check up of compliance and also do's and donts:

- First and foremost, the Health check up should be done by completely Independent professional since by Human nature if the executor is given the responsibility to check, the likelihood of identification of mistake will be very very minimal.

- Not all the errors are permanent. There are error which can be ratified by the other action. It helps in identification and ratification of such.

- Preparation for Suo Moto rectification of the error can be made.

- and Many More.

- Health checkups of Books of accounts will cover majority of all the compliance which are / may be applicable to the business entity. To name the few:

ü  Income Tax Act, 1961 and Rules made there under;

ü  Companies Act 2013 and Rules Made there Under

ü  Bombay Shops and Establishment Act, 1948

ü  Goods and Service Tax Act 2017 and Rules made there under, Maharashtra

ü  Goods and Service Tax Act 2017 and Rules made there under, Tamil Nadu

ü  Payment of Gratuity Act, 1972;

ü  The Maternity Benefit Act, 1961and Rules made there under;

ü  Employees Provident Fund and Miscellaneous Provisions Act, 1952;

ü  The Workmen’s Compensation Act, 1923

ü  The Labour Welfare Fund Act

ü  Minimum Wages Act 1948

ü  Payment of Bonus Act 1965

ü  The Maharashtra Professional tax Act

ü  The Tamil Nadu Professional Tax aCT

ü  The Trademark act 1999

ü  The Indian Contract Act, 1872, if applicable;

ü  The Indian Stamps Act, 1899

ü  Reserve Bank of India Act, 1934

ü  Foreign Exchange Management Act

ü  The Micro, Small and Medium Enterprises Development Act 2006

ü  Credit Information Companies Regulation Act, 2005

ü  Information Technology Act, 2000

ü  Intellectual Property Rights

ü  Environment Laws, if applicable;

ü  Any other Act which may be applicable to the company

So, before we end this, as always said and proven fact, prevention is better then cure similarly, pro-active measure to get the compliance health check up of business is a MUST.

By,

Team Palankarta LLP
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