Cost Accounting Records and Cost Audit – clarifications regarding applicability and compliance requirements.

Cost audit compliance: companies must file Form-B and maintain cost records for the prescribed multi-year period.

Companies covered by the Companies (Cost Accounting Records) Rules, 2011 shall file only the prescribed Form B compliance report and not furnish other cost record details to the Government; where all non exempt products/activities are under cost audit, separate compliance filing is unnecessary. Newly covered companies must keep cost records and supporting statements in good order for the prescribed multi year retention period starting with the first year of application. The definition of Turnover excludes taxes and duties for all related cost accounting and audit rules.