Time limit for keeping records

[SUBRAMANIAN IYER]

What is the maximum number of years for keeping the records of excise / service tax for an EOU?

[Rama Krishana]

The period is 5 years generally in each case. But it is important that 5 years to be counted from which date. I think 5 years must be counted from the date or period in which liability arises or event occurs. For an example, you have imported some material without payment of duty. You failed to use that material as per the permission or scheme of EOU and you divert that material to DTA without payment of duty. Your period of 5 years would be counted from the date of diversion of said material to DTA in contravention of provisions.

[RadheyShyam Mangal]

Though for a normal unit 5 years are sufficient for keeping the record of Central Excise, Service Tax,however, it would be in the interst of the unit to keep the record of at export and duty free procurement for the entire tenure till it is debonded. Such record will help in getting debonding facilitated when such figures are required to be verified by the CE and Development Commissioner.

[DEV KUMAR KOTHARI]

Shri Ram Krishna and Shri R.S.Mangal has replied on general need to keep records. Please check the period, the pending cases or proceedings and likely disptes which can be raised by revenue. There is no harm in keeping records for longer period. In case of space shortage, scanned document of important matters can be kept.

AI Summary

Export Units Should Retain Tax Records Until Debonding; Consider Digital Storage for Longer-Term Disputes The discussion revolves around the time frame for retaining records of excise and service tax for an Export-Oriented Unit (EOU). Generally, records should be kept for five years, counted from the date of liability or event occurrence. However, it is suggested that records related to exports and duty-free procurement be maintained for the entire duration until debonding, as they may be needed for verification. Additionally, it is advisable to keep records longer than five years, especially if there are pending cases or potential disputes, and to consider digital storage for important documents.