Friday 17 August 2012

Cost Audit - Negative List

Dear Professionals

MCA ( Cost Audit Branch) has given a clarification vide General Circular No.67/2011 dated 30th Nov 2011 , that the Companies (Cost Accounting Records) Rules ,2011 are not applicable to following :

1. Wholesale or retail trading Activities

2.Banking,financial,leasing ,investment,insurance,education,health care,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 Record Rules.

3. Companies engaged in rendering jobwork operations or contracting /sub-contracting activities , and are paid only the job work or conversion charges , such as tailoring ,baking,painting,printing,constructing,servicing etc

4. Companies engaged in the production,processing ,manufacturing or mining activities till such time they commences their commercial operations.

5. Ancilliary products/activities of companies incidental to their ,main operations(ie., products/activities that do not constitute their main line of business ) and wherein the total turnover from the sale of each such ancilliary products /activities do not exceed 2% of the total turnover of the company or Rs.20 crore , whichever is lower . However , required details of all such ancilliary products/activities may be maintained under a miscellaneous group and disclosed appropriately.

For any clarification , feel free to contact us : 

Krishna Dasan.A
Mob:+91 98711 28831 



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