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: VAT Audit :: due date for vat payment :: cpt :: Central Excise rule to resale the machines to a new company :: empanelment :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: list of goods taxed at 4% :: TDS :: form 3cd
« News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers

Panel to recast cost audit setup
April, 17th 2008

The government is all set to recast its cost audit frameworkthe system of scrutinising cost of production and profit margins of individual companies even as spiralling inflation is drawing policymakers attention to companies in sectors like cement and steel.

The government has set up a 7-member expert panel headed by a senior official attached to the cost audit branch of the ministry of corporate affairs to advise on how to rework mandatory cost audits. Cost audit allows the government to access sensitive operational details such as cost of production, raw material consumption, capacity utilisation, quality control, research expenses and royalty payments. The panel is expected to give its report by September.

With commodity prices shooting up to record levels, concerns about low efficiency and suspected cartelisation have been expressed in industries like cement and steel. The panel, therefore, is unlikely to recommend dropping such sensitive sectors from the purview of cost auditing. Besides, certain ministries have recommended that the scope of cost audit should be expanded to companies in sectors like defence production. The panel might, however, recommend a principle-based approach of requiring companies to maintain cost records, but not requiring the law to specify how to go about it, sources said.

It might also recommend excluding a large number of small companies from the purview of mandatory cost auditing while suggesting non-discriminatory audit of bigger ones.

Cost data is becoming relevant in new areas like adjudicating on allegations of anti-competitive practices such as predatory pricing. It is also useful to detect tax evasion and to make policy decisions related to pricing. Under the competition law, cost data of a company is vital in determining whether it is guilty of predatory pricing.

Without it, it is difficult to ascertain whether a company is selling below its cost of production to force competitors out of the market. The government had earlier considered retaining only sectors producing essential commodities under cost auditing but has decided to get the issue examined in detail by an expert committee.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

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