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

Record retention requirements: retain excise and service tax records from the triggering event and preserve export procurement files for debonding.
Retention of excise and service tax records for Export Oriented Units is generally expected for a five-year period counted from the date the liability arises or the triggering event occurs. EOUs should nonetheless keep export and duty-free procurement records for their entire tenure until debonding to facilitate verification, and may retain scanned copies where physical storage is limited.