Turnover Threshold for Architects
There is no specific turnover threshold for architects to consider for bookkeeping in India.
However, architects generally required to maintain proper books of account and get their accounts audit if their gross receipts of profession exceed Rs. 50 lakhs in a financial year.
The Companies Act, 2013 (the “Act”) requires all companies, including architectural firms, to maintain proper books of account. The Act also requires companies to get their accounts audited by a chartered accountant.
The specific bookkeeping requirements for architects depend on the type of architectural firm and the size of the practice.
However, all architectural firms must keep track of the following financial information:
- Income
- Expenses
- Assets
- Liabilities
Architects should also keep track of their trust accounts separately from their business accounts. Trust accounts used to hold money that entrusted to the architect by a client.
Architects who fail to maintain proper books of account may be subject to penalties by the Registrar of Companies (ROC).
The penalties can be up to Rs. 5,000 for the first offense, Rs. 10,000 for the second offense, and Rs. 20,000 for the third and subsequent offenses.
In addition to the penalties imposed by the ROC, a law firm that fails to maintain proper books of account may also be liable to civil and criminal penalties.
For example, the firm may be sued by its creditors for failing to provide them with accurate financial information.
The firm’s partners and directors may also be held personally liable for the firm’s debts if they fail to take reasonable steps to ensure that the firm’s books of account are maintained.
Therefore, it is important for architects to keep accurate and up-to-date records of their financial transactions. This will help to avoid the risk of penalties and other legal consequences.
Here are some of the benefits of bookkeeping for architects:
- It can help to identify any errors or omissions in the architect’s financial records.
- It can help to comply with the law and avoid penalties.
- It can give the architect peace of mind that their financial records are in order.
If you are an architect, you should consider hiring a bookkeeper to help you with your bookkeeping needs. A bookkeeper can help you to keep your records organized and accurate, and they can also help you to comply with the law.
To visit: https://www.mca.gov.in/
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