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

[Sanjeet Kumar]

Dear 

The cost audit rules 2013 are issued by the mca under companies act 1956, or 2013. which is applicable only on the companies as defined in the companies act 2013.

This is my opinion. As u told in query, u are a partnership firm then this is not applicable on u  

[mohd imran]

Dear Sir

i am working in limited co. which having partnership firm(T.O. of partnership firm 70 cr. ) is it mandatory to prepare cost records of partnership firm along with limited co.

advise me

Thanks and Regards

imran

[RAMNIRANJAN KANDOI]

Cost Audit is not applicable to Partnership Firm . Turnover of a factory is not the basis of applicability of Cost Audit.

Cost Audit is applicable to only Pvt/ public ltd. company

AI Summary

Cost audit applicability: Partnership firms are not subject to cost audit; applicability is limited to companies.
Cost audit obligations attach to entities that are companies; partnership firms, including manufacturing concerns, are not subject to the cost audit rules discussed. Applicability is determined by company status (private or public company) rather than the turnover of a partnership's business.