Mandatory cost audit

S. Banerjee (Practising Cost Accountant. Core area- Central Excise. Service Tax Costing system installation including maintenance of Cost Records and Cost Audit and Management Audit mainly Revenue leakages Audit)   (622 Points)

26 July 2011  

Dear Members,

This is for your information.   

 

Notification F. No. 52/26/CAB/2010 dated 03.05.2011 (as modified dated 30.06.2011) provides that it is applicable to any company under the following Industries whether in India or outside in India shall get it Cost Accounting Records Rules 2011 audited by a practicing Cost Accountant in respect of each of its financial year commencing from 1.4.2011:

i)   the aggregate value of the turnover made by the company  from Sale or Supply of all products or activities exceeds Rs 100 Creres of immediate preceding financial year or

iii) wherein the companies equity or debt are listed or in process of listing of any stock exchange

Name of the Industries: 

a)      Cement relevant Chapter Heading 25,38 & 68 of Central Excise Tariff Act 1985,

b)      Tyres and Tubes relevant Chapter Heading 40 of Central Excise Tariff Act 1985,

c)      Steel  relevant Chapter Heading 72 & 73 of Central Excise Tariff Act 1985,

d)      Paper relevant Chapter Heading 47 & 48 of Central Excise Tariff Act 1985,

e)      Insecticides relevant Chapter Heading 38 of Central Excise Tariff Act 1985,

f)        Glass  relevant Chapter Heading 70 of Central Excise Tariff Act 1985,

g)      Paints & Varnish relevant Chapter Heading 32 of Central Excise Tariff Act 1985,

h)      Aluminum  relevant Chapter Heading 76 of Central Excise Tariff Act 1985,

 

Note: Intermediate products and articles or allied products of above industries if included under any other chapter of Central Excise Tariff Act 1985 not mentioned above shall also covered under this orders.

Welcome for any queries on this notification. 

S. Banerjee