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Frequently Asked Questions (FAQs - 3) Maintenance of Cost Records and Audit thereof Under the Companies Act 2013 FAQ 3.1 A company is building a next generation ed-tech platform. It is providing learning outcomes based pedagogy to students. It has developed a proprietary tech stack for test analysis and is developing video based content for K-12, pre-UG and pre-PG. It is also providing online education and promoting personalized learning for higher education in India. Will the company b
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FAQ :
The Rules are applicable to an ed-tech company if it provides online education services and meets the prescribed turnover threshold. If the company is solely involved in software development without providing online education, the rules do not apply.
Yes, if the company engages in composite activities involving software development alongside equipment like robotics or drones covered under CTA Chapter Code 85, and meets the turnover threshold. Developing only software tools does not trigger these rules.
Yes, Healthcare Services, including functioning as or running hospitals, diagnostic centers, and clinical centers, are covered. Therefore, Test Tube Baby Hospitals fall under the ambit of cost records maintenance and cost audit as per the rules.
Yes, the business of Toll Plaza operation and Toll Road maintenance is covered under the rules. Even if the work is outsourced, the company, as the original supplier for the project, will be subject to cost records and audit, provided it meets the turnover threshold.
Yes, companies operating from an SEZ are exempt from the requirement of cost audit under the Companies (Cost Record & Audit) Rules, 2014. However, the requirement for maintaining cost records still applies to both SEZ and non-SEZ units.
Yes, the construction and sale of residential flats are covered under the definition of Construction Industry, specifically relating to 'real estate development'. Therefore, maintenance of cost records and cost audit will be applicable to such companies if they meet the turnover threshold.
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