Alignment of Excise Classification Code and Products under Cost Audit

Amendment to Notification dated 3^rd May, 2011

Sir,

In continuation of our earlier updates on cost audit, we would like to bring to your kind notice new amendment on 30^th june 2011 vide order no. 52/26/CAB-2010, wherein to bring uniformity in the cost audit orders,  products under Cost Audit have been aligned with Excise Classification  Codes.

Applicability

The companies falling under following industries have been covered under Cost Audit if they fulfill the below mentioned criterion;

1. Companies having turnover exceeding Rs 100 crores in the immediately preceding financial year
2. Companies whose equity or debt securities are listed or are in the process of listing

The companies will have to get the cost audit conducted for the year 2011-12

The HSN classification details are as follows:

It has been specifically clarified by way of a note that even if Intermediate products and articles or allied products of above industries are included under any other HSN classification code, the same will be covered under Cost Audit.

Last date for appointment of Cost Auditor

The date for appointment of Cost Auditor was within 90 days from the Ist day of the financial year, now if the cost audit order has been issued for the first time in respect of any organisations, the cost auditor has to be appointed within 90 days of the date of the order and Form 23C has to be e-filed with the Ministry of Corporate Affairs

We request you to contact us in case of any further query

Regards,

Navneet Kumar Jain

FICWA, MBA., LL.B., M.COM., PGDTL, AIIISLA., LIII

For N.K. Jain And Associates

Cost Accountants

navneetic@yahoo.com,navneetic@rediffmail.com

Visiting faculty : CAG, AGCR, Excise,Service Tax Department, Delhi VAT Department