Cost audit Report & Record Rules 2014
Download as PPTX, PDF3 likes1,662 views
The document outlines the key changes to the cost audit process and reporting requirements as per the Companies Act 2014. It provides details of the industries that are subject to cost audit and the regulatory authorities. It also summarizes the changes made to the cost audit forms and reporting structure, which is now required to be done based on the 4 digit CETA chapter rather than product group wise. The cost audit report is divided into 4 parts covering general information, cost details, product profitability, and financial reconciliation.
Cost audit Report & Record Rules 2014
- 1. -CMA Darshan Vora 9821125113/9867565486 N.Ritesh & Associates
- 3. Partic ulars Industries Covered Regulatory Authority CETA 1 Telecom Services TRAI NA 2 Generation, Transmission, Distribution & Supply of Electricity Relevant Regulatory or Authority under Electricity Act NA 3 Sugar 1701,1703,2 207 4 Fertilizers 3102 to 3105 5 Drugs & Pharmaceuticals 2901 to 2942, 3001 to 3006 6 Petroleum Products Petroleum & Natural Gas Regulatory Board 2709 to 2715
- 4. There are around 33 Industries Covered . In Which Infrastructure, Education & Health Services are newly added where as Some of the Industries like food & Beverages ,Automobiles, Paints & Varnishes are out of Preview of Cost Audit & Records from FY 2014-15
- 5. Particulars Industries Covered Regulatory Authority CETA 1 *Machinery & Mechanical Appliances used in Atomic,Defense,Spac e ,atomic Energy Sector excluding Ancillary Items 8401 to 8402,8801 to 8805, 8901 to 8908 2 Turbo Jets & Propellers 8411 3 Arms & Ammunition 3601 to 3603, 9301 to 9306 4 Propellant Powder & Explosives 3601 to 3603 5 Radar Apparatus 8526 6 Tanks & Other Armored Vehicles 8710 7 *Port Services Tariff Authority of Major Ports NA
- 6. Particulars Industries Covered Regulatory Authority CETA 8 *Aeronautical Services Airports Economy Regulatory Authority NA 9 Steel 7201 to 7229,7301 to 7326 10 *Roads & Other Infrastructure Projects NA 11 Rubber & Rubber Products Rubber Board 4001 to 4017 12 Coffee & Tea 0901 to0902 13 *Railway Tramway Locomotives 8601 to 8608 14 Cement 2523,6811 to 6812 15 Ores & Minerals 2502 to 2522, 2524 to 2526, to 2528 to 2530, 2601 to 2617
- 7. Particulars Industries Covered Regulatory Authority CETA 16. Mineral Fuels – other then mineral Oil 2701 To 2708 17. Base Metals 7401 to 7403, 7405 to 7413, 7419, 7501 to 7508, 7601 to 7614, 7801 to 7802, 7804 , 7806,7901 to 7905,7907, 8001,8003, 8007, 8101 to 8113 18 * Organic & Inorganic Chemicals 2801 to 2853, 2901 to 2942, 3801 to 3807,3402, 3403, 3809 to 3824 19 Jute & Jute Products 5303,5310 20 Edible Oil 1507 to 1518 21 Construction Industry NA 22 *Health Services NA 23 * Education Services NA 24 Milk Powder 0402
- 8. Particulars Industries Covered Regulatory Authority CETA 25 Insecticides 3808 26 Plastics & Polymers 3901 to 3914, 3916 to 3921, 3925 27 Tyres & Tubes 4011 to 4013 28 Paper 4801 to 4802 29 Textiles 5004 to 5007, 5106 to 5113, 5205 to 5212, 5303,5310, 5401 to 5408, 5501 to 5516 30 Glass 7003 to 7008, 7011, 7016 31 Other Machinery 8403 to 8487 32 Electrical & Electronic Machinery 8501 to 8507,8511 ,8512,8514,8515,85 17,8525 to 8536, 8538 to 8547 33 *Production ,Import , Supply or Trading of Medical Devices 9018 to 9022
- 9. Note all the Industries marked in * are to be Referred from Notification as it had huge Description of Coverage of Product/Service. Note NA in CETA Chapter means there is no Excise Code but that Industry is Covered in Audit
- 10. As per Section 148 ,Sub Section (1) of the Companies Act ,2014 the company needs to maintain Cost Records including Foreign Company as per Definitions in Clause 42 & Section 2. If the Conditions below are fulfilled immediately in previous Financial year Particulars Industry Overall Turnover from all the Products & Services 1 Regulated Sector > 35 Crores 2 Non Regulated Sector > 35 Crores
- 11. All the Four Conditions Should be Fulfilled in Immediate Preceding Financial Year. * Product = First Four Digit CETA Code Industry Condition 1 (Turnover Company as Whole) Condition 2 (Turnover of Individual Product /Products& Services/ser vices Condition 3 ( Turnover from Export from foreign currency % ) Condition 4 (Operating in SEZ) Regulated > 50 Crs > 25 Crs < 75% No Non Regulated Sector > 100 Crs > 35 Crs < 75 % No
- 12. Two Forms are Substituted Form Name Purpose Remarks CRA - 1 Maintenance of Records are Defined regarding all the Expenses CRA -3 Cost Audit Annexure 1) Its is slightly modified as Compared to Cost Audit Report of Co Act 2011 2) Now Report shall be made on the Basis of 4 Digit CETA Chapter & Not on the Basis of Product Group Wise
- 13. New Cost Audit Report are Divided in 4 PartsParticulars Section Annexure No as per Companies Act 2014 Annexure as Per Companies Act 2011 Remarks General Information Part A Annexure 1 Annexure 1 Details of Cost Auditor Part A Annexure 2 Annexure 2 Cost Accounting Policy Part A Annexure 3 Product or Service Details Part A Annexure 4 Annexure 3 As Earlier we had to Report as Per Product code now we need to Report as Per CETA Chapter. 2) We also need to state the difference if any as if the Turnover as per Excise & Service Tax are different from Financial Records
- 14. Part B is For Manufacturing Sector ,Part C is for Service Industry but annexure are Same .Reporting is to be done for Each & Ever product Coverd in Cost Audit Particulars Section Annexure No as per Companies Act 2014 Annexure as Per Companies Act 2011 Remarks Quantitative Information Part B/Part C Annexure 1 Annexure 4 Abridge Cost Statement Part B/Part C Annexure 2 Annexure 5 Material Consumed Part B/Part C Annexure 2 A Annexure 5 A Utility details Part B/Part C Annexure 2 B Annexure 5 B Industry Specific Details Part B/Part C Annexure 2 B Annexure 5 C
- 15. Particulars Section Annexure No as per Companies Act 2014 Annexure as Per Companies Act 2011 Remarks Product & Service Profitability Statement Part D Annexure 1 NA Profit Reconciliation Part D Annexure 2 Annexure 7 Value Addition Part D Annexure 3 Annexure 8 Financial Position Part D Annexure 4 Annexure 9 Related Party Transaction Part D Annexure 5 Annexure 10 Reconciliation of Indirect Taxes Part D Annexure 6 Annexure 11