FY 2014-15 & Onwards

 

COMPANIES (COST RECORDS AND AUDIT) RULES, 2014.

(As Amended till 31st December, 2014)

 

A. REGULATED SECTORS

S.No

Industry / Sector / Product / Service

CETA heading (wherever applicable)

Applicability for Cost Records

Applicability for Cost Audit

1.

 Telecommunication services made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature (other than broadcasting services) and regulated by the Telecom Regulatory Authority of India under the Telecom Regulatory Authority of India Act, 1997 (24 of 1997)

N.A.

Company’s Overall turnover from all its products and services exceeds Rs.35 Crores

Company’s Overall turnover from all its products and services exceeds Rs.50 Crores

and

Aggregate turnover of the individual product(s)/ service(s) exceeds Rs.25 Crores

2.

 Generation, transmission, distribution and supply of electricity regulated by the relevant regulatory body or authority under the Electricity Act, 2003 (36 of 2003), other than for captive generation (as defined under the Electricity Rules 2005);

N.A.

3.

 Petroleum products regulated by the Petroleum and Natural Gas Regulatory Board under the Petroleum and Natural Gas Regulatory Board Act, 2006(19 of 2006);

2709 to 2715

4.

 Drugs and Pharmaceuticals;

2901 to 2942, 3001 to 3006

5.

 Fertilisers

3102 to 3105

6.

 Sugar and industrial alcohol;

1701,1703,2207

B. NON-REGULATED SECTORS

S.No

Industry / Sector / Product / Service

CETA heading (wherever applicable)

Applicability for Cost Records

Applicability for Cost Audit

1.

 Machinery and mechanical appliances used in defence, space and atomic energy sectors excluding any ancillary item or items 

Explanation- For the purpose of this sub-clause, any company which is engaged in any item or items supplied exclusively for use under this clause, shall be deemed to be covered under these rules.

8401 to 8402, 8801 to 8805,

8901 to 8908

Company’s Overall turnover from all its products and services exceeds Rs.35 Crores

Company’s Overall turnover from all its products and services exceeds Rs.100 Crores

and

Aggregate turnover of the individual product(s)/ service(s) exceeds Rs.35 Crores

2.

 Turbo jets and turbo propellers

8411

3.

 Arms and ammunitions

3601 to 3603,

9301 to 9306

4.

 Propellant powders; prepared explosives, (other than propellant powders); safety fuses; detonating fuses; percussion or detonating caps; igniters; electric detonators

3601 to 3603

5.

 Radar apparatus, radio navigational aid apparatus and radio remote control apparatus

8526

6.

 Tanks and other armoured fighting vehicles, motorised, whether or not fitted with weapons and parts of such vehicles, that are funded (investment made in the company) to the extent of ninety per cent. or more by the Government or Government Agencies;

8710

7.

 Port services of stevedoring, pilotage, hauling, mooring, re-mooring, hooking, measuring, loading and unloading services rendered by a Port in relation to a vessel or goods regulated by the Tariff Authority for Major Ports under section 111 of the Major Port Trusts Act, 1963(38 of 1963)

N.A.

 

S.No

Industry / Sector / Product / Service

CETA heading (wherever applicable)

Applicability for Cost Records

Applicability for Cost Audit

8.

 Aeronautical services of air traffic management, aircraft operations, ground safety services, ground handling, cargo facilities and supplying fuel rendered by airports and regulated by the Airports Economic Regulatory Authority under the Airports Economic Regulatory Authority of India Act, 2008 (27 of 2008)

N.A.

Company’s Overall turnover from all its products and services exceeds Rs.35 Crores

 

 

 

 

 

 

Company’s Overall turnover from all its products and services exceeds Rs.100 Crores

and

Aggregate turnover of the individual product(s)/

service(s) exceeds Rs.35 Crores

9.

 Steel

7201 to 7229,

7301 to 7326

10.

 Roads and other infrastructure projects corresponding to para No. (1)(a) as specified in Schedule VI of the Companies Act, 2013

N.A.

11.

 Rubber and allied products being regulated by the Rubber Board constituted under the Rubber Act, 1947 (XXIV of 1947)

4001 to 4017

12.

 Coffee and tea

0901 to 0902

13.

 Railway or tramway locomotives, rolling stock, railway or tramway fixtures and fittings, mechanical (including electro mechanical) traffic signalling equipment’s of all kind

8601 to 8608

14.

 Cement

2523, 6811 to 6812

15.

 Ores and Mineral Products

2502 to 2522,

2524 to 2526,

2528 to 2530,

2601 to 2617

16.

 Mineral fuels (other than Petroleum), mineral oils etc

2701 to 2708

 

S.No

 Industry / Sector / Product / Service

CETA heading (wherever applicable)

Applicability for Cost Records

Applicability for Cost Audit

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

Company’s Overall turnover from all its products and services exceeds Rs.35 Crores

Company’s Overall turnover from all its products and services exceeds Rs.100 Crores

and

Aggregate turnover of the individual product(s)/

service(s) exceeds Rs.35 Crores

18.

 Inorganic chemicals, organic or inorganic compounds of precious metals, rare-earth metals of radioactive elements or isotopes, and Organic Chemicals

2801 to 2853, 2901 to 2942, 3801 to 3807,

3402 to 3403, 3809 to 3824

19.

 Jute and Jute Products

5303, 5310

20.

 Edible Oil

1507 to 1518

21.

 Construction Industry as per Para No.(5)(a) as specified in Schedule VI of the Companies Act, 2013

N.A.

22.

 Health services, namely, functioning as or running hospitals, diagnostic centres, clinical centres or test laboratories

N.A.

23.

 Education services, other than such similar services falling under philanthropy or as part of social spend which do not form part of any business

N.A.

24.

 Milk powder

0402

25.

 Insecticides

3808

26.

 Plastics and polymers

3901 to 3914, 3916 to 3921, 3925

27.

 Tyres and tubes

4011 to 4013

28.

 Paper

4801 to 4802

 

S.No

 Industry / Sector / Product / Service

CETA heading (wherever applicable)

Applicability for Cost Records

Applicability for Cost Audit

29.

 Textiles

5004 to 5007, 5106 to 5113, 5205 to 5212, 5303, 5310, 5401 to 5408, 5501 to 5516

Company’s Overall turnover from all its products and services exceeds Rs.35 Crores

Company’s Overall turnover from all its products and services exceeds Rs.100 Crores

and

Aggregate turnover of the individual product(s)/

service(s) exceeds Rs.35 Crores

30.

 Glass

7003 to 7008, 7011, 7016

31

 Other Machinery

8403 to 8487

32

 Electronics or Electrical Machinery

8501 to 8507, 8511 to 8512, 8514 to 8515, 8517, 8525 to 8536, 8538 to 8547

33

 Production, import and supply or trading of following medical devices, namely:-(i) Cardiac Stents;

(ii) Drug Eluting Stents;

(iii) Catheters;

(iv) Intra Ocular Lenses;

(v) Bone Cements;

(vi) Heart Valves;

(vii) Orthopaedic Implants;

(viii) Internal Prosthetic Replacements;

(ix) Scalp Vein Set;

(x) Deep Brain Stimulator;

(xi) Ventricular peripheral Shud;

(xii) Spinal Implants;

(xiii) Automatic Impalpable Cardiac Deflobillator;

(xiv)Pacemaker (temporary and permanent);

(xv) patent ductus arteriosus, atrial septal defect and ventricular septal defect closure device;

(xvi) Cardiac Re-synchronize Therapy ;

(xvii) Urethra Spinicture Devices;

(xviii) Sling male or female;

(xix) Prostate occlusion device; and

(xx) Urethral Stents.

(Note : S.No.33 not applicable to Foreign Companies having only Liasion Offices)

9018 to 9022

 

Note

The Cost Audit in case of products referred at S.No.12 and S.No.24 to 32 is applicable w.e.f. 01.04.2015.

 

Exemptions

The requirement for Cost Audit under these rules shall not be applicable to a company:

(i) whose revenue from exports, in foreign exchange, exceeds seventy five per cent of its total revenue or

(ii) which is operating from a special economic zone.

 

Exemptions

The Provisions relating to maintenance of Cost Records and Cost Audit are not applicable to a company which is classified as a micro enterprise or a small enterprise including as per the turnover criteria under sub-section (9) of Section 7 of Micro, Small and Medium Enterprises Development Act, 2006

 

Maintenance of Cost Records

The Cost Records are required to be maintained in Form CRA-1

 

Format of Cost Audit Report

The Cost Audit Report is required to be prepared in Form CRA-3

 

Submission of Report to the Company

The Cost Audit Report is to be submitted to the Board of Directors of the company within a period of one hundred and eighty days from the closure of the financial year

 

Filing of report with the Central Government

The Cost Audit Report is to be filed with the Central Government within a period of thirty days from the date of receipt of a copy of the cost audit report by the Company, alongwith full information and explanation on every reservation or qualification in Form CRA-4 alongwith fees.

 

Appointment of Cost Auditor

The Cost Auditor is required to be appointed within one hundred and eighty days of the commencement of every financial year

Notice of such appointment is to be filed with the Central Government within a period of thirty days of the Board meeting in which such appointment is made or within a period of one hundred and eighty days of the commencement of the financial year, whichever is earlier, through electronic mode, in Form CRA-2, alongwith the fee