The Ministry of Corporate Affairs (MCA) has notified Companies (Accounts) Second Amendment Rules, 2021 which has deferred mandating audit trail feature in accounting software till 1st April 2022.
MCA had earlier notified Companies (Accounts) Amendment Rules, 2021 vide notification dated 24.03.2021 which stated that for the financial year commencing on or after the 1st day of April, 2021 2022 (now deferred), every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 1st April, 2021
G.S. R. 247 (E).— In exercise of the powers conferred by section 134 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014, namely:-
(1) These rules may be called the Companies (Accounts) Second Amendment Rules, 2021.
(2) They shall come into force with effect from the 1st day of April, 2021.
2. In the Companies (Accounts) Rules, 2014, in proviso to sub-rule (1) of rule 3, for the figures, letters and words “1st day of April, 2021”, the figures, letters and words “1st day of April, 2022” shall be substituted.
I am Aman Daultani, a Chartered Accountant by profession, co-founder of Tax Ninja, and a passionate blogger.
My core areas include practical application of Ind AS in the preparation of financial statements. I focus on the practical implementation of Ind AS rather than just interpreting the law.
I believe "Knowledge comes from learning and wisdom comes from understanding it practically."
