Cost compliance report/cost audit applicability

This query is : Resolved

Arun M (Querist)
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28 October 2013 Dear Members,

We are the manufacturing company of Fabrics, and various counts of Yarn. The turnover for the year 2010-11 is around 46 Crore and for the year 2011-12 it is around 37 Crore and for the last year (i.e., 2012-13) it is 48 Crores.

Under which category we have to make compliance? Whether to file Cost Audit Report or Cost Compliance Report. What are the eligibility criteria applicable for our concern.

Kindly clarify the same.

Thanks in Advance

With Regards
Arunachalam Muthalagappan

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 October 2013 Please check your excise tariff details and compare the product category

Cost audit apply when the turnover exceeding Rs.20 Crore

CMA Narendra Mundra

CMA Narendra Mundra (Expert)
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09 November 2013 I think cost compliance will be applicable in your case, not cost audit

Santosh Kalburgi

Santosh Kalburgi (Expert)
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09 November 2013 On fabrics, cost audit is applicable when any one of the following 3 criteria satisfied.
1. Total Turnover from operations exceeds 100 crores . Or,
2. Networth exceeds 5 crores,Or,
3. the company is a listed.
Please check the above conditions too. Also pls note that fabric was covered under the cost audit order dated 24 Jan 2012. and hence your company will come under cost audit from April 2012 and audit/complaince will be applicable from FY 2012-13 onwards.

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