Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Cost audit applicability

291 views 1 replies

shreyansh

C.A.

105 Points Posted on 04 May 2016

For the Year 2014-15, Company having turn over of 125 Crores but out of that 65 Crores is of Trading only. Is Cost audit is applicable?

Replies (1)

According to Rule 4(1) of Cost Audit Rules, Every Company specified under item A of rule 3 shall get its cost records audited in accordance with the above rules if the overall annual turnover of the Company from all of its products and services during immediately products and services is Rupees 50 crore or more and agregate turnover from indivisual products or services is 25 Crores or more.

According to Rule 4(2) of Cost Audit Rules, Every Company specified under item B of Rule 3 shall fet its cost records audited in accordance with above rule if the overall turnover of the Company from all of its products and services during immediately products and services is Rupees 100 crore Rupees or more and agregate turnover from indivisual products and services is 35 Crores or more.

Provided that nothing in this rule shall apply to the Company which is operating from Special Economic Zone