sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
News Headlines »
 How much tax can you save via tax saving investments, expenditures?
 5 tax saving mistakes millennials need to watch out for Income Tax Saving
 Tax-saving 101 for young earners
 4 important tax benefits of buying a house jointly
 5 best ways to invest and save tax at the last minute Last minute tax saving tips
 Pay your pending advance tax by 15 March
 2018 Tax Extensions: 12 Tips To Save You Money
 5 investment options other than Section 80C to save more Income Tax return filing
 Is it mandatory to link Aadhaar with income tax returns?
 Companies (Incorportation) 2nd Amendment Rule 2019
 Know how your family can help you save tax Filing income tax returns?

Limit cost accounting norms to essential goods units: CII
January, 28th 2008
All industries that are outside the ambit of the Essential Commodities Act 1955 should be exempted from the Cost Accounting Rules notified under the Companies Act with immediate effect, recommended the Confederation of Indian Industry (CII).

According to the industry association, the scope of cost record rules may be limited to industries that produce essential goods, since intense competition due to globalisation and removal of the license raj ensures that the industry produces and markets its quality output efficiently and cost effectively.

CII said that Section 209(1)(d) of the Companies Act 1956 provides maintenance of cost records for various industries. Currently, 44 industries have been mandated to maintain cost accounting records including details about production quality control, raw material consumption, R&D expenses, export obligation, royalty payments, fixed assets and depreciation. The association said it is important that the need for regulation in a particular industry be considered while notifying that industry for mandatory maintenance of cost records.

Maintaining records

Maintenance of cost accounting records entails a huge cost for companies in terms of time and money since they are required to be maintained in a very minute and detailed manner. CII said that details of all components of cost have to be included even though they may be insignificant. Maintenance of cost records is difficult for companies that produce multiple commodities, as actual consumption records have to be maintained for power, fuel and utilities per unit of production for each type of product. Moreover, non-application of these rules to traded imported goods puts the local industry at an unfair cost disadvantage, by unnecessarily increasing its transaction costs.

Reasons for recording

The apparent reasons for cost accounting are the grant of subsidies and the protection of Government revenues. Moreover, Government revenue is more than adequately assured by the Central Excise and Income tax laws. E-governance in this sector has also brought about a lot of transparency for revenue collection, stated CII.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions