COST AUDIT ON PARTNERSHIP FIRMS

[AMIT FARMANIA]

Dear All,

Can any one tell me whether a partnership firm (not an LLP) who is engaged in manufacturing process is required to get its cost records audited or not.

If yes, then under what circumstances.

Also the manufacturing concern has a annual turnover more than 250 crore then.

Somebody has says to me that according to rules cost audit is determined by turnover I am very confused.

Please guide me.

Regards

Amit

AI Summary

Partnership firms, regardless of turnover, are exempt from cost audits under Companies Act rules, applicable only to companies. A participant inquired whether a partnership firm engaged in manufacturing with an annual turnover exceeding 250 crore must undergo a cost audit. Responses clarified that cost audit rules, issued under the Companies Act, apply only to companies, not partnership firms. One response emphasized that turnover is not the basis for cost audit applicability, which is limited to private or public limited companies. Thus, partnership firms are not subject to cost audits regardless of their turnover.