Topics In Demand
Notification
New

No notification found.

MCA: Submission requesting for deferment of timelines for implementation of Notification No. GSR 205 (E), which require companies to adopt accounting software having the feature of audit trail
MCA: Submission requesting for deferment of timelines for implementation of Notification No. GSR 205 (E), which require companies to adopt accounting software having the feature of audit trail

March 26, 2021

56

0


Listen to this article



As you may be aware, Ministry of Corporate Affairs (MCA) recently issued Notification No. GSR 205 (E) dated 24th March 2021 notifying Companies (Accounts) Amendment Rules, 2021 (New Rules).

The new rules seek to insert Proviso to Rule 3(1) of Companies (Accounts) Rules 2014, which requires businesses using accounting software for maintaining books of accounts, to only use such software which has a feature of recording audit trail of every transaction, creating edit log of changes made in books of account along with the date when such changes were made and ensuring that audit trail cannot be disabled.

These changes have to be incorporated in the ERPs w.e.f. April 1, 2021, which is less than a week from the date of issuance of Notification. Including audit trail in ERPs is a business reform and not just a law change. It will involve significant changes to be made to ERP systems, which will require time for end-to-end implementation. Further, the users will also need training to adopt the concept of audit trail into their businesses. For a smooth and successful implementation of a critical business change of this magnitude, it is imperative that businesses are given adequate time to configure and test their systems from a date post where there is complete clarity regarding the process flow.


Given the above, NASSCOM made a representation to MCA on March 26, 2021 to defer implementation of Notification No. GSR 205 (E). In this regard, we also request that a time frame of at least six months be given to businesses to enable them to plan and effect changes for smooth implementation of the Notification.

We hope you will find the update useful. We will keep you posted on further developments in this regard.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Tejasvi

© Copyright nasscom. All Rights Reserved.