Cost audit applicability on seeds companies

Hi,

 

I want to understand the applicabiltiy of recent Cost Audit Orders issued.

DOes any of the orders hold applicabiltiy on Vegetable Seeds- The company deals in R&D, Production, Processing and Sale of Vegetable Seeds.

The only industry which i feel we could get close to is Plantation (no. 41) And rule applicability 685 (E)

Replies (2)

Dear Vikram,

Check if the company is covered under Chapter 6 or 12 of Central Excise Tariff Act (CETA) headings.

As per the MCA order dated 3rd June 2011, point 2 of Defination and Interpretations has section 'o' on "production activity" which stated that ".....growing a product for use, consumption, sale, transport, delivery or disposal....."

I think if the turnover / networth / listing criteria are crossed, then this company would need compliance certification or cost audit, as the case may be.

Thank You Mr Manish. I see the answer. Another query is the applicability of order. From when is this applicable.

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