The Institute of Cost and Work Accountants of India (ICWAI) plans to urge the Government to bring the service industry under the ambit of cost audit.
As of now, only those companies engaged in production, processing, manufacturing and mining activities are required to adhere to cost accounting record rules.
"This is required as the service industry now accounts for about 52 per cent of our GDP," said Mr D.V. Joshi, President of ICWAI.
Banking, insurance, transportation, hospitals, education and social services need to be brought under ambit of cost audit, he added.
"It is important to know the cost of social services - on what basis electricity and water usages are charged," said Mr Chandra Wadhwa, Vice-President.
The draft of a section of the Companies Act needs to be changed for this purpose.
This would be one of the key issues that the institute will take up with the Ministry of Company Affairs.
According to the ICWAI, the move would help the Government build an authentic database on the cost structure of various services.
Several international agencies contemplating investments in India want a broad idea about the cost structure, Mr Wadhwa said. A cost database would be of importance to various regulatory bodies, the Competition Commission and Government Departments for fixing usage charges.