On 24th March 2021, the Ministry of Corporate Affairs had mandated that from the financial year commencing on or after the 1st day of April 2021, every company which uses accounting software for maintaining its books of accounts, 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 accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled. This rule has now been postponed to the next year, starting Apr 1, 2022.
Although the intent of the government while issuing the rule was to bring more transparency and improve compliance, there were certain concerns raised by multiple trade associations and industry bodies. The concerns showcased in front of the ministry are as follows:
- While recording transactions, the aspect of human error can cause difficulties for both the business and the auditor. Furthermore, the intervention of tax officers for every such error may create a burden on the parties and is less likely to succeed.
- It would be difficult for businesses to understand if the software they are using is compliant with the new regulations or not. This may happen due to a lack of technical knowledge and expertise of the businesses. For this purpose, the regulation needs to be properly addressed with the exact description and scope.
- Even if the software company is compliant with the regulation, there are chances of hacking and tampering of the system. In this case, none of the parties can be held responsible for not following the rules.
In any case, you need not worry, as your Peddle Plus version is already complaint for transactions editing/modifications.
As you already know, we only allow changes to the Stock Take, and therefore, have the feature to record the audit trail of all the changes made to it. So, you can rest assured and continue using Peddle Plus without any hassle. To know more about the software, visit www.peddleplus.in