Can anybody say the difference between cost audit report rule and cost accounting record rule, and the companies which are covered under provision regarding the cost accounting record rule and cost audit report rule?
4 Replies
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 19 January 2012
Mr Rajesh Raman
Mainteance of cost records is now mandatory for almost all mfg companies and even service industries are also covered w.e.f 1.4.2011 but cost audit is not mandatory for all companies as of now 12 industries which were earlier notified for cost audit prevails .central govt will bring under its purview more industries based on the Information furnished for companies for which cost audit is so far not mandatory notification will be issued in this regard by CG
RAMESH CHANDRA SHARMA
(munka istentisztelet)
(899 Points)
Replied 19 January 2012
cost accounting record rules, as the name suggests, are recquired to be complied with in respect to maintenance of cost records for various
industries/products. ...... It contains the particulars relating to utilisation
of material or labour or other item of cost as may be prescribed to
include such details in the books of accounts. The broad categories
under which the detailed cost records are required are materials, labour,
utilities, overheads, depreciation, royalty/technical know-how, research
& development expenses, incentives on exports, interest and other
borrowing costs, captive consumption, pollution control, inter-company
transaction etc. It also contains various proformae to enable the industry
to calculate the cost of production and cost of sales effectively.
cost audit report rules. as far as i know, cost audit report rules are the rules which the cost auditor follows while preparing the cost audit report of a company.........this is all i can say about audit report rules
...
deepika mittal
(employee)
(22 Points)
Replied 19 January 2012
cost accounting rule will be applicable on the companies:-
1. turnover during the immediately preceding financial year exceeds Rs. 20 crore.
2. Net worth is exceeding on the last day of preceeding financial year exceeds 5 crore
3.In case of listed companies.
Jyoti
(CS Trainee)
(541 Points)
Replied 19 January 2012
Cost Audit Report rule is only one but on the other hand Cost Accounting record rule are 43.
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