Cost audit amendments clarify overhead classification, leased asset treatment, GST reconciliation and revised CRA forms. The amendment updates cost audit rules to require functional classification of overheads (works, administration, selling and distribution), specific lease rental treatment distinguishing operating and finance leases, amortisation of long benefit selling and distribution overheads, and exclusion of demurrage/detention charges from selling and distribution overheads. It mandates separate transportation cost records for exempted and exported taxable goods and requires cost statements to include quantitative production/sales details and reconciliation of indirect taxes showing taxes paid and input tax credit utilised.
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The amendment updates cost audit rules to require functional classification of overheads (works, administration, selling and distribution), specific lease rental treatment distinguishing operating and finance leases, amortisation of long benefit selling and distribution overheads, and exclusion of demurrage/detention charges from selling and distribution overheads. It mandates separate transportation cost records for exempted and exported taxable goods and requires cost statements to include quantitative production/sales details and reconciliation of indirect taxes showing taxes paid and input tax credit utilised.
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