« Top Headlines » Open DEMAT Account in 24 hrs  ITR Filing: 6 Ways to Get Exemption on Income Tax  Income Tax Return Filing: 10 Mistakes To Avoid When Filing ITR For AY 2024-25  Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals «  Tax liability of PMS investors won`t go up... Advance tax collections up 29%... » Mandatory cost auditing norms may be revised June, 21st 2007 Sensitive operational details of a large section of corporate India are likely to come under government scrutiny soon. The ministry of corporate affairs has started reviewing the way it orders mandatory cost audits on companies to optimise the coverage of each of the 44 sectors for which it has notified norms for keeping cost records. In many sectors, cost audit data is used by the government for decisions related to pricing, excise duty, income-tax and in calculating the injury suffered by the domestic industry due to dumping. The audits also reveal the extent of efficiency and profitability of a company as well as the sector. The move is to find out why some companies were missed out while audits were ordered. This would help the ministrys Cost Audit Branch (CAB) to determine if they too need to be audited. In January this year, CAB ordered cost audits of 12 oil companies at the request of the petroleum ministry to have an idea of the extent of under-realisation (sale of petroleum products below their cost price). Last year, it had ordered cost audits on 70 electricity and 90 pharma companies, which form only a small part of the sectors concerned. Cost audits were ordered on drug makers in the wake of reports that astronomical trade margins exist in the sector. Comparing production cost with retail price would expose this. The other sectors covered include telecom, plantation, mining, chemicals and pharma, steel, engineering, textile, sugar, cement, tyre and motor vehicles. Cost audits are ordered on specific companies in a sector that have a turnover of over Rs 10 crore. All manufacturing companies are expected to keep cost records as per rules notified by CAB. The audit covers areas such as quality control, raw material consumption, R&D expenses, royalty payments, fixed assets and depreciation.