TMI BlogCost Accounting Records and Cost Audit – clarifications about coverage of certain sectors thereunder.X X X X Extracts X X X X X X X X Extracts X X X X ..... /or professionals in connection with the recently issued circulars/notifications concerning cost accounting records and coverage of cost audit. To remove doubts and ambiguities, the following clarifications are issued: (a) That the Companies (Cost Accounting Records) Rules, 2011 are not applicable to: (i) Wholesale or retail trading activities. (ii) Banking, financial, leasing, investment, insurance, education, healthcare, tourism, travel, hospitality, recreation, transport services, business/professional consultancy, IT IT enabled services, research development, postal/courier services, etc. unless any of these have been specifically covered under any other Cost Accounting Records Rules. (iii) Companies engaged in rendering j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... audit to all units located in the specified Zones such as Special Economic Zones (SEZs), Export Processing Zones (EPZs) and Free Trade Zones (FTZs) and also to the 100% Export Oriented Units (EOUs), subject to the following: ( a ) Exemption from mandatory cost audit will be available only to those units of a company that are either located in the specified Zones or qualify as 100% EOUs and not to all other units of the same company. ( b ) There will be no exemption from maintenance of cost accounting records and filing of compliance report with the MCA in compliance with the applicable Cost Accounting Records Rules. ( c ) In case any regulatory body seeks cost data in respect of exempted units of any industry, then all relevant uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the industries listed in the said order; the words articles or allied products thereof refer to such articles or allied products that are produced either wholly or predominantly [not less than 50% by weight or volume] by using the listed products as their primary inputs. To explain this aspect further, the following clarifications are given as illustrations: (i) For Paints Varnish industry, all other items such as tanning or dyeing extracts, tanning their derivatives, dyes, pigments other colouring matters, putty other mastics, printing inks, etc. mentioned in Chapter 32 of the Central Excise Tariff Act, 1985 are not covered unless such items are used as intermediates for the production of Paints Varnishes or are prod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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