2. ACKNOWLEDGEMENT
I would like to express my special thanks of
gratitude to my teacher Mrs Anjali Paliwal as well
as our principal Mr. R.P. Tyagi who gave me the
golden opportunity to do this wonderful project on
the topic Accounts of sikkim, which also helped me
in doing a lot of Research and i came to know
about so many new things I am really thankful to
them.
Secondly i would also like to thank my parents and
friends who helped me a lot in finalizing this
project within the limited time frame.
3. About State Account
• Pay and Accounts Office was set up at Gangtok
under Government of Sikkim w.e.f. 01.07.1978.
The Accounting functions (including the Accounts
of works transaction for which three separate self
cheque Drawing Departments (i) SNT (ii) Lotteries
(iii) Land Revenue and Disaster Management
exit.) of the State performed by the Head Quarter
of Pay and Accounts Office located at Gangtok.
And for that purpose there is one CPAO
functioning almost in a treasury pattern and
rendering consolidated monthly accounts for the
State of Sikkim Accountant General.
4. CIVIL ACCOUNTS
• Monthly Civil Accounts are received from Government of Sikkim
through six treasuries .These accounts are to be received in Office of
the Senior Deputy Accountant General (A&E), Sikkim, Gangtok within
the 10th of the following month to which the accounts pertain. The
accounts are received through Sikkim Integrated Financial
Management System (SIFMS) version 1.0. However, the data are
received both in hard copy and in soft copy format. The softcopy
format (e- mail) is only partial and manual posting is also required to
be done.
• On receipt of the accounts (List of Payment, Cash Account, Schedules,
vouchers and bank receipts etc)this office compiles and consolidates
the accounts in Voucher Level Computerisation (VLC) system Major
Head wise taking into account treasury suspense, Objection Book
suspense, clearance of Advance Contingent Bill etc. On completion of
the monthly accounts a copy (Hard Copy) of the same generated
through VLC system is forwarded to Finance, Revenue & Expenditure
Department (FRED), Government of Sikkim. Gangtok.
5. FOREST ACCOUNT
• There are 05 (five) Forest Accounts rendering units
received through the treasuries from Forest and
Environment Department & Land use Department,
Government of Sikkim. Consequent upon the
decentralization of accounts by the State
Government w.e.f. 01.08.2003, all the divisional
Forest accounts are now compiled according to the
provisions contained in the Sikkim Public Works
Code by the respective Chief Pay & Accounts Office
(Works Cell) in the respective treasuries. The
accounts are received in compiled hard copy format
and the data is fed into the VLC system for ultimate
generation of monthly accounts.
6. WORKS ACCOUNTS
• There are 41 (forty one) Public Works Accounts
rendering units. Consequent upon the
decentralization of accounts by the State Government
w.e.f. 01.08.2003, all the divisional Works accounts are
now compiled according to the provisions contained
in the Sikkim Public Works Code by the respective
Chief Pay & Accounts Office (Works Cell) in the
respective treasuries.
• Three Works accounts rendering unit namely Sikkim
Nationalised Transport Department, State Lotteries
and Land Revenue and Disaster Management
Department submit their accounts directly to this
office without routing it through the respective
treasuries.
8. MANDATORY MAINTENANCE OF BOOKS OF
ACCOUNTS UNDER THE PROVISIONS OF
INCOME TAX ACT, GOODS & SERVICES TAX
(GST) AND COMPANIES ACT
• It is Mandatory for the Small, medium and Large
Business to maintain its day to day records of
transactions like Sales, Purchases, Expenses,
other Payment and receipts in cash or in bank(s)
as per Generally accepted accounting principle.
In India Institute of Chartered Accountants of
India (ICAI) issued Accounting standards to
regulate prudent accounting practice in India.
10. • The financial statement of the company is required
to be prepared in compliance with the accounting
standards issued by the central government and as
per schedule III of the act. Section 133 prescribes
that the central government on the
recommendation of the Institute of chartered
accountants of India and in consultation with the
National Financial Reporting Authority (NFRA) shall
prescribe the accountirg standards .
• Therefore company has to maintain books of
accounts, at the registered office or any office that
board of directors may decide. If the company is
maintaining books at an office other than the
registered office, it has to intimate the same to RoC.
The company can maintain the accounts
electronically also.
11. FOR HOW LONG SHOULD THE BOOKS
BE MAINTAINED IN SIKKIM?
• Books should be maintained for a period of 8 years
from the end of the relevant financial year. Books of
accounts to be maintained-
• Cash flow statement
• Records of sales and purchases,
• Records of assets and liabilities
• Items of cost
• Deeds, vouchers, writing, documents, minutes, and
registers whether in physical or electronic mode.
12. • Company Act also issued Books of accounts including vouchers and receipts
are required to be maintained under different statutory laws – Income Tax
Act, Companies Act 2013 and GST Act ,Books to be maintained, retention
period and compulsion requirements are different under all the 3 laws.
• The following Accounting Standards (AS) are applicable to all companies :-
AS-I for disclosure of accounting policies; the AS-2 for valuation of
inventory; the AS-3 for cash flow; the AS-4 for contingencies and events
occurring after balance sheet date; AS-5 for net profit or loss for the
period%; AS-6 for depreciation; the AS-7 for construction contracts; the AS-
9 for revenue recognition; the AS-10 for accounting of fixed assets; the AS-II
for the effects of change in forex rates; the AS-12 for government grants; the
AS-I3 for investments; the AS-14 for amalgamations; the AS-16 for
borrowing costs; the AS-17 for segment reporting; the AS-18 for related
party transactions; the AS-22 for income taxes; the AS-24 for discontinuing
operations and the AS-26 for intangible assets.
• In case a company has to prepare consolidated financial statements, the
following accounting standards would have to be followed; the AS-21 for
consolidated financial statements, the AS-23 for investment in associate
companies; the AS-27 for reporting of interest in joint ventures and the AS-
25 for interim financial reporting.
13. UNDER INCOME TAX ACT
If the sale/turnover/gross receipts from the business or profession is
more than Rs. 25,00,000 or the income from business or
profession is more than Rs. 2,50,000 in any of the 3 preceding
years, then books of accounts will be compulsorily maintained.
Following professions are covered under this provision –
• Legal
• Medial
• Engineering
• Architectural Accountancy
• Technical consultancy
• Interior decoration
• Authorized Representative (one who charges fees for representing
someone before tribunal or any authority) Film artist (producer,
editor, actor, director, music director. art director, dance director,
cameraman, singer, lyricist, story writer, screenplay or dialogue
writer and costume designers.
• Company secretary
14. Thus, if the above-mentioned professions have an income of more than Rs.
2,50,000 in any of the 3 preceding years, they need to maintain books of
accounts. In case of a new profession also, if the income is expected to be
more than Rs. 2,50,000, the professionals should maintain books.
Books of accounts as per Rule 6F
• Cash Book
• Journal
• Ledgers
• Copies of bills or receipts
• Daily cash register with details of patients, services rendered, fees received
and date of receipt (persons carrying on medical profession)
Details of stock of drugs, medicines, and other consumables used (persons
carrying on medical profession)
If the income isn't more than Rs. 2,50,000 in any of the 3 preceding years or
not expected to be more than Rs. 2,50,000 in case of a new profession,
then also books should be maintained. However, books, in this case,
haven't been specified-so any books can be maintained but it should be
such that ATO can calculate the income
15. ACCOUNTING OR BOOKS OF
ACCOUNTS GST ACT
Every registered person has to maintain GST
records at the principal place of business.
• Records to be maintained
• Production or manufacture of goods
• Inward and outward supply of goods or services
or both
• Stock of goods
• Input tax credit availed
• Output tax payable and paid and
• Other particulars as may be prescribed
