Cost Record & Cost Audit

After long delay ultimately MCA has released the final rules relating to Cost record & cost audit yesterday

There is no big change in the rule what it was in the draft rules

cost audit record requirment will be to the following type of Companies

• Companies engaged in the production of certain goods in stretegic sector ( defence , space , atomic energy 

• Companies regulated by a Regulator / central Govt / government department 

• Companies operating in areas involving public interest ( including construction industry ,  Education & medical services & diagnosis center or clinical trial )  But applicable only if the turnover of any product/ service  exceed 50 Cr per year ( if dealing in Mul;tiple product/ service  ) and in the case of single product/ service  company if the Net woth exceed 150 cr / turnover exceed 25 Cr       

• Companies engaged in manufacture / import / trading of  certain Medical devices ( almost 20 category included ) - But applicable only if the turnover of any product exceed 10 Cr per year/ one third of total turnover ( if dealing in Mul;tiple product ) and in the case of single product company if the Net woth exceed 150 cr / turnover exceed 25 Cr       

cost audit requirment will be to the following type of Companies

Cost Audit is not applicable for all product / services mentioned above . Audit is applicable only for some selected category of prioduct / services based on Turnover criteria

The complete text of the Rule can be referred in the following link of MCA

http://www.mca.gov.in/Ministry/pdf/rules_1_30062014.pdf