TMI Blog2022 (6) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... t the audit of cost records of class of companies which are covered under sub-section (1) and which have a net worth of such amount as may be prescribed or a turnover of such amount as may be prescribed, shall be conducted in the manner specified in the order. The amendment of Rule 4(2) of the amended Companies (Cost Records and Audit) Rules, 2014 shows that the aggregate turnover in respect of individual product or products or service or services for which the cost records are required, be maintained under Rule 3, is Rs.35 crore or more, in respect of item (B) of Rule 3. Therefore, the said Rule makes it clear that as far as the production is concerned, if the turnover is below Rs.35 crore, the cost audit is not required - In the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and Audit) Rules, 2014, Rule -3 has been substituted, relevant portion of which is as follows: 2. In the Companies (Cost Records and Audit) Rules, 2014,; (i) in rule 2, after clause (a), the following clause shall be inserted, namely:- (aa) Central Excise Tariff Act Heading means the heading as referred to in the Additional Notes in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (ii) for rule 3, the following rule shall be substituted, namely:- 3. Application of Cost Records - For the purpose of sub-section(1) of Section 148 of the Act, the class of companies, including foreign companies defined in clause (42) of Section 2 of the Act, engaged in the production of the goods or providing services, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain companies:--(1) Notwithstanding anything contained in this Chapter, the Central Government may, by order, in respect of such class of companies engaged in the production of such goods or providing such services as may be prescribed, direct that particulars relating to the utilisation of material or labour or to other items of cost as may be prescribed shall also be included in the books of account kept by that class of companies: Provided that the Central Government shall, before issuing such order in respect of any class of companies regulated under a special Act, consult the regulatory body constituted or established under such special Act. (2) If the Central Government is of the opinion, that it is necessary to do so, it m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nies (Cost Records and Audit) Rules, 2014, as amended by the above said Notification, reads as follows: (iii) for rule 4, the following rule shall be substituted, namely:- 4. Applicability for cost audit--(1) Every company specified in item (A) of rule 3 shall get its cost records audited in accordance with these rules if the overall annual turnover of the company from all its products and services during the immediately preceding financial year is rupees fifty crore or more and the aggregate turnover of the individual product or products or service or services for which cost records are required to be maintained under rule 3 is rupees twenty five crore or more. (2) Every company specified in item (B) of rule 3 shall get its cost ..... X X X X Extracts X X X X X X X X Extracts X X X X
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