Comparative Review
Rule 5(3) of Service Tax Rules, 1994 provides that all records shall be preserved for a period of five years immediately after the financial year to which such records pertain.
Chapter 6 of the CBEC’s Central Excise Manual obligates every assessee to maintain the records for a period of five years immediately after the financial year to which such records pertain.
Different State VAT laws prescribe different time periods for maintenance of records. However, many States prescribed a period of five years.
Where the proceedings are pending in appeal, revision etc., the records are generally maintained till the proceedings are finally concluded, though this is not specifically stipulated in the erstwhile laws. In fact, the books and records are required to be maintained till the time frame for revision proceedings stand open and are not barred by limitation of period.