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MCA update: Companies permitted to implement transparent accounting software from April 1, 2022
MCA update: Companies permitted to implement transparent accounting software from April 1, 2022

April 5, 2021

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Ministry of Corporate Affairs (MCA) has, vide issue of Companies (Accounts) Second Amendment Rules, 2021 dated April 1, 2021, extended the deadline for mandatory adoption of accounting software having audit trail of each and every transaction and having feature to store logs of edits to April 1, 2022. Earlier, companies were required to comply with this requirement from April 1, 2021 .

In this regard, NASSCOM had made a representation to MCA 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. Our representation to MCA is available here.

The relaxation is important as companies need time to implement audit trail related changes in their ERPs. Further, it will enable businesses to give training to the users to adopt the concept of audit trail into their businesses.

Copy of the notification is attached for your reference.

We hope you will find the update useful.


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AccountsAmendmentRules_01042021.pdf

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