The much awaited demand of the stake holders with regard to the fine-tuning of Companies Cost Records and Audit Rules has been met with though not fully by the Ministry of Corporate Affairs.
The amendments have modified the few words in the rules to widen the scope and some more HSN codes have been included through the amendments dated 3rd Dec 2018.
There was always confusion whenever there was an extension of the date of holding of Annual General Meeting about the date of filing of Cost Audit Report with MCA. Now the same has been settled and it has been clarified that the companies can file the CRA-4 with MCA within the extension period.
The amendments mainly pertain to
a) Modification of few words
b) Inclusion more HSN codes
c) Automatic extension in the last date of filing of CRA-4 (Cost Audit Report in
XBRL) in case of AGM extension
d) Unit of Measurement defined for cost records purposes and aligned with
Customs Tariff Act based on which HSN codes under GST have been mandated.
It is normal for accompany to use different UOM for sale purposes but for the purposes of maintenance of cost records, the UOM as mentioned in CTA codes against relevant HSN codes has to be used. It seems that the same is being aligned with GST UOM. The maintenance of cost records has been mentioned in CRA-1 and there has been specific addition in the CRA-1 as item 31 which states
Unit of Measurement
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After amendments (The amendments are given in the Italics bold fonts |
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Now the companies providing services as given above for the port are now required to maintain cost records. Earlier the services by the port only were covered. |
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The scope seems to have widened as the companies providing the specific services as above at the airports which are regulated by the AERA will now be required to maintain cost records under section 148 of the Companies Act 2018. |
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8609 HSN code refers to the containers |
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5307 refers to Yarns of Jute or of other Textile Bast Fibres |
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4701 to4704 includes mechanical and chemical wood pulps of various types |
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Automatic extension of Period for filing of Cost Audit Report extended in case there is an extension of holding of Annual General Meeting
The long pending demand of the industry has been met with regard to the simultaneous extension in the filing of Cost Audit Report in case the extension of holding of Annual General Meeting is granted by MCA. After Rule 6(6) the provision as given in the bold and underline font has been added.
'(6) Every company covered under these rules shall, within a period of thirty days from the date of receipt of a copy of the cost audit report, furnish the Central Government with such report alongwith full information and explanation on every reservation or qualification contained therein, in Form CRA-4in Extensible Business Reporting Language format in the manner as specified in the Companies (Filing of Documents and Forms in Extensible Business Reporting language) Rules, 2015 along with fees specified in the Companies (Registration Offices and Fees) Rules, 2014
Provided that the Companies which have got extension of time of holding Annual General Meeting under section 96(1) of the Companies Act, 2013, may file form CRA-4 within resultant extended period of filing of financial statement under section 137 of the Companies Act, 2013.
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