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 :: ACCOUNTING STANDARD :: form 3cd :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARDS :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: due date for vat payment
 
 
« News Headlines »
 8 benefits you must know about this tax-saving mutual fund
 10 most important income-tax changes which will apply from April 1
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 Income Tax Rules That Will Change From April. See Details Herea
 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

Govt to scrap cost audit in select sectors
August, 17th 2007
The government is set to exempt a host of industries in the manufacturing sector from mandatory cost audits. The sensitive operational details of industries that are set to go off the governments penetrating gaze include synthetic textiles, engineering, power transmission and distribution, chemicals, cosmetics, all electronic products and telecommunication gadgets.

The ministry of corporate affairs is planning to retain only those industries that produce essential commodities within the purview of cost record-keeping and its mandatory audit by government-approved cost auditors. A formal decision, however, will be taken after a panel looking into the proposed overhaul of cost accounts record-keeping rules submits its report. The panel is also understood to be working in this direction.

The rationale behind the move is that in a deregulated, free and competitive market, corporate houses themselves are very conscious of their cost of production, quality control, raw material consumption and capacity utilisation.

The government need not keep an eye on it long after the end of licence-permit raj. However, in sectors like cement and pharmaceuticals, where the regulator needs cost data for pricing decisions, cost audits will continue.

In other sectors, competition in the market will take care of the consumers interest. Besides, investors are concerned only about the financial information of companies and not their cost data, said a source.

Continuing with the requirement of cost audits can only keep the compliance cost of the corporate sector high. In addition, companies are required to make the necessary disclosure that stakeholders are keen to know under the Companies Act. Other industries likely to be exempt from cost-auditing are industrial alcohol, rayon, dyes, soda ash, polyester and nylon chips, fibre and yarn, footwear, soaps and detergents, mining and metallurgy, plantation, electric lamps, motors, fans, cycles, air conditioners and refrigerators.

Under the Company Law, companies in 44 declared sectors are expected to maintain all details about production, including quality control, raw material consumption, R&D expenses, export obligation, royalty payments, fixed assets and depreciation.

When the government orders a mandatory audit, they should get these details audited by a government-approved auditor. Last year, the government ordered audit into the records of 12 public sector oil giants, including Gail India, HPCL, IOC, BPCL and ONGC, apparently in a bid to find out how true their claims of under-realisation or selling petroleum products below their cost price are.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

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