Cost auditor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2011 Dear expert,

On 30th June 2011 an Order (ref:F.No.52/26/CAB-2010) has pass to appoint Cost auditor by the companies wef 1st April 2011 by ICAWI & even MCA ,my question is either in companies includes Builders or Real estate also. Are they liable?

Please reply

Regards,

Neha Dwivedi

CS Bijoy

CS Bijoy (Expert)
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04 July 2011 Please check the following link

https://www.caclubindia.com/articles/mandatory-cost-audit-cost-compliance-for-the-fy-2011-12-10258.asp

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2011 Dear Expert,

To appoint Cost auditor It comes to knowledge that company who turnover exceeds 5 cr for production process or 20 cr for sale or supply but bit confusion in the list of Industrial companies given by ICWAI Real Estate name is liable to appoint which includes in construction, reconstruction,dealing in flats ,contractors , architect,decorator and processors of and dealers in all kind of building materials and acting as estates agents, brokers & managers of estates & properties & even in lease & to otherwise deal all types of businesses related to real estates

Please reply its urgent

Regards,

Neha Dwivedi

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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20 July 2024 Based on the information you've provided, it seems there is confusion regarding whether a real estate company needs to appoint a cost auditor. According to the Companies (Cost Records and Audit) Rules, 2021, the requirement to appoint a cost auditor applies to companies engaged in certain industries based on their turnover thresholds.

For real estate companies, the key factor is their turnover:

- If the company's turnover from sale or supply of goods or services exceeds Rs. 20 crore, then they are required to maintain cost records and appoint a cost auditor.

Real estate activities such as construction, reconstruction, dealing in flats, contracting, architecture, decoration, processing and dealing in building materials, estate agency, brokerage, property management, and leasing are typically covered under this rule if their turnover meets the threshold.

Therefore, if a real estate company's turnover exceeds Rs. 20 crore from their sale or supply activities, they are liable to appoint a cost auditor as per the Companies (Cost Records and Audit) Rules, 2021. It's advisable to verify the latest regulations or consult with a qualified professional to ensure compliance specific to your situation.

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