2. 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.
ACKNOWLEDGEMENT
3. SIKKIM ACCOUNTS
The Accounts Section of Home Department is headed by Senior Accounts Officer,
assisted by Senior Accountant and other Accounts and Ministerial staff. This section
looks after the following matters:
1. The Section deals with all accounts works of Home Department, Chief Minister's
Officer, Sikkim Houses and other Guest Houses in New Delhi and Guwahati.
2. The Section also deals with the discretionary grant of Hon'ble Chief Minister, Hon'ble
Ministers and Advisors.
3. The revenues generated from various Guest Houses under Home Department are also
looked after and timely credited into revenue account of the Government.
4. The Section also looks after the CMRF.
5. Alongwith all the Section of Home Department, the Officers and staff of Accounts
Section actively participate in all the Protocol functions of the Home Department.
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 , Sikkim, Gangtok within the 10th of the
following month to which the accounts pertain.
On receipt of the accounts this office compiles and
consolidates the accounts in Voucher Level
Computerisation 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 of the same generated
through VLC system is forwarded to Finance, Revenue &
Expenditure Department , Government of Sikkim.
Gangtok.
5. WORKS ACCOUNTS
There are 41 (forty one) Public Works Accounts
rendering units. Consequent upon the
decentralization of accounts by the State Government,
all the divisional Works accounts are now compiled.
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.
6. The Finance, Revenue and Expenditure Department plays
a pivotal role in the development of the State by providing
sound and efficient financial management system for
good governance. The Department is mainly concerned
with the matters of Taxation that are under the purview of
the state governments, financial matters and the
preparation of the state government budget. The main
aim of the department is to create and sustain a
framework that contributes the prudent fiscal
management and thereby ensures fiscal stability
In the backdrop of the given difficult economic condition,
the financial situation of the state posed difficult and
immediate challenges characterized by issues such as high
annual fiscal deficit, disproportional increase in
expenditure, critical financial position of the State Public
Sector Enterprise and financial institutions.
7. To overcome the problem the primary task was to
set right the prevailing negative economic
conditions and therefore without losing anytime, the
Government prepared a White Paper on the
financial position of the state.
The State Government has taken various measures
and reforms which resulted in rapid economic
growth with revenue expanding due to robust
growth in economic activities, information
technology, increased transfers from the Finance
Commissions and the then Planning Commission,
own tax collection through implementation of VAT
etc.
9. 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.
10. 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.
11. 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.
12. 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
13. 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
14. 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
