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Saturday, September 21, 2013

COST ACCOUNTING RECORD RULES, 2011

COST ACCOUNTING RECORD RULES, 2011

Not applicable to a body corporate governed by a special Act
  • Supersedes 36 Cost Accounting Records out of 44 issued till date
  • Not applicable to following activities or products covered under individual Cost Accounting Records Rules notified on 7th December 2011:
    • Pharmaceuticals
    • Electricity Industry
    • Sugar
    • Fertilizers
    • Telecommunications
    • Petroleum Industry

Clarification – General Circular 67/2011
The new Cost Accounting Records Rules, 2011 (Common & 6 Industry specific) are not applicable to
companies engaged in:
  • Wholesale Trading
  •  Insurance 
  • Recreation 
  • Retail Trading 
  • Education 
  • Transport Services 
  • Banking 
  • Healthcare 
  • Professional Consultancy 
  • Financial Tourism IT & IT Enabled Services 
  • Leasing Travel Research& Development 
  • Investment Hospitality Postal/Courier services
Job work operations or contracting/ sub-contracting activities and paid only the job work or conversion
charges, such as, tailoring, baking, repairing, painting, printing, constructing, servicing, etc.
v A company yet to commence commercial operations.
v Ancillary products/activities of companies incidental to their main operations (i.e. products/activities
that do not constitute their main line of business)
• where the total turnover from the sale of each such ancillary products/activities do not exceed
2% of the total turnover of the company or • ` 20 crores, whichever is lower.
v Required details of all such ancillary products/activities to be maintained under a miscellaneous
group and disclosed appropriately. 

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