Govt defers mandatory use of transparent accounting software use by year

In a relief to businesses across the spectrum, the government has extended deadline for mandatory adoption of accounting software having audit trail of each and every transaction and having feature to store logs of edits.

As per a new notification by the Ministry of Corporate Affairs (MCA), implementation of mandatory use of accounting software having Audit Trail as provided under proviso to Rule 3 of the Companies (Accounts) Rules, 2014 has been deferred till March 31, 2022.

The changes were earlier proposed to be implemented from April 1, 2021. But after receiving several representations from various stakeholders expressing their inability to make quick changes in accounting software,