Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: empanelment :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: Central Excise rule to resale the machines to a new company :: VAT RATES :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: due date for vat payment :: TDS :: list of goods taxed at 4% :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit
 
 
News Headlines »
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 How to Make Tax Saving Investments Less Taxing with an SIP in ELSS
 NRIs having only investment income may not file tax returns
 With income tax returns filing deadline near, here are 3 major things to do before March 31
 When public becomes tax gatherer

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 2017 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