Regarding cost audit
This query is : Resolved
11 July 2016
The turnover of a company exceeds 1000 Cr but the individual product turnover does not exceed 35 Cr whether the cost audit is applicable?
05 December 2016
Dear Sir plz provide me your email address I will mail you a tool for checking cost audit in any company..
20 July 2025
Regarding your query on cost audit applicability:
As per the Companies (Cost Records and Audit) Rules, 2014 (as amended), cost audit is required if:
The turnover of the company exceeds ₹100 crore in the immediately preceding financial year; or
The turnover of any product or service of the company exceeds ₹35 crore in the immediately preceding financial year.
In your case, overall turnover exceeds ₹1000 crore, which is way above ₹100 crore threshold.
Hence, cost audit is applicable even if individual product turnover is less than ₹35 crore because the overall turnover exceeds the prescribed limit.
Summary:
Condition Applicability of Cost Audit
Turnover of company > ₹100 crore Cost audit applicable
Turnover of individual product > ₹35 crore Cost audit applicable
Both conditions not met Cost audit not applicable
Since your company's total turnover exceeds ₹100 crore (₹1000 crore in your case), cost audit is mandatory irrespective of individual product turnover.
As per the Companies (Cost Records and Audit) Rules, 2014 (as amended), cost audit is required if:
The turnover of the company exceeds ₹100 crore in the immediately preceding financial year; or
The turnover of any product or service of the company exceeds ₹35 crore in the immediately preceding financial year.
In your case, overall turnover exceeds ₹1000 crore, which is way above ₹100 crore threshold.
Hence, cost audit is applicable even if individual product turnover is less than ₹35 crore because the overall turnover exceeds the prescribed limit.
Summary:
Condition Applicability of Cost Audit
Turnover of company > ₹100 crore Cost audit applicable
Turnover of individual product > ₹35 crore Cost audit applicable
Both conditions not met Cost audit not applicable
Since your company's total turnover exceeds ₹100 crore (₹1000 crore in your case), cost audit is mandatory irrespective of individual product turnover.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- F & O PROFIT REPORTING FOR AY 2026-27
- TDS on property - Form 141 query
- Type of Capital Gain
- Gst on travel by air for business purposes
- Taxability of credit in canara bank ET & T section (NRO)
- Loss of interest in PF transfer from EPFO to Trust
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Residential status of non resident
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
