TaxTMI 
TaxTMI 
Cost Accounting Records (Electricity Industry) Rules, 2001.
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....) gas turbine (c) hydro-electric power (d) atomic power (e) solar power (f) wind power (g) any other source of energy; (2) Transmission and bulk supply of electricity; (3) Distribution and retail supply of electricity : Provided that these rules shall not apply to a company,- (a) the aggregate value of the machinery and plant installed wherein, as on the last date of the preceding financial year, does not exceed the limits as specified for a small scale industrial undertaking under the provisions of Industries (Development and Regulation) Act, 1951 (65 of 1951); and (b) the aggregate value of the turnover made by the company from sale or supply of all its products or activities during the preceding financial year does not exceed ten crores of rupees. 3. Maintenance of records .- (1) Every company to which these rules apply shall, in respect of each of its financial year commencing on or after ....
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....(4) of rule 3 shall, subject to provisions of section 209 of Companies Act,1956 (1 of 1956) be punishable with fine which may extend to five thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day, after the first day during which such contravention continues. SCHEDULE [See rule 3] 1. MATERIALS: (1) The proper records shall be maintained showing all receipts, issues and balances both in quantities and values of all major fuel such as coal, lignite, gas, naphtha, bagasse alongwith their calorific values and other materials used in the generation, transmission, distribution or supply of electricity. These records shall contain such details so as to enable the company to determine the quantity and cost of receipt (including all direct charges upto the works in respect of major materials/fuels), issues and balances in quantity as well as value of each item of all such materials. The basis on which....
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.... including spoilage, if any, in determining the cost of activities, shall be indicated in the cost records. (5) The proper records shall also be maintained to indicate the value of materials which have not moved for more than twelve months for effective control of inventory. (6) Where any credit under Central Value Added Tax (CENVAT) under the Central Excise Act, 1944 (1 of 1944) or any other benefits of the nature of CENVAT credit, are received/receivable on any item of material and/or consumable stores or spares, the cost of such material and/or consumable stores/spares should be shown after adjusting such credit or benefits. 2. SALARIES AND WAGES: (1) The proper records shall be maintained to show the attendance and earnings of all employees function-wise or activity-wise and the works on which they are employed. The records shall also indicate the following separately for each such function or activity: (a) piece rate wages (wherever applicable); (b) incentive wages, either individually or collect....
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.... are likely to provide benefits in terms of savings in cost in future shall be treated as deferred revenue expenditure over a period not exceeding five years. These costs shall not form part of salaries and wages and shall be shown separately. Such costs shall be excluded from valuation of inventories since these do not result in putting the inventories to their present location and condition. 3. SERVICE DEPARTMENT EXPENSES: The proper records shall be maintained to indicate expenses incurred in respect of each service department or function like laboratory, welfare measures, safety implementation, transport, dispensary, school, crèche, township etc. These expenses shall be apportioned to other services and power activities on equitable and reasonable basis and applied consistently. Where these services are utilized for other products or activities of the company also, the basis of apportionment of such expenses to other products or activities shall be on equitable and reasonable basis and applied consistently. 4. UTILITIES: (1) The proper records showing quantity and cost of water collectio....
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....nd machinery, furniture and fixtures etc. employed for the production of activities under reference alongwith the method and rate of depreciation shall be maintained. The basis of apportionment of common assets to the product(s) under reference shall also be indicated. In case of revaluation of assets, the same shall be indicated separately. The basis of allocation of indirect assets to the products under reference shall be on equitable and reasonable basis and applied consistently. (3) The basis on which depreciation is calculated and allocated or apportioned to various cost centres or activities and absorbed on such activities shall be clearly indicated in the cost records. If depreciation charged or chargeable to the cost centres or departments is in excess or lower than the depreciation prescribed and applicable to the company under the Electricity (Supply) Act, 1948 or under the provisions of sub-section (2) of Section 205 of the Companies Act, 1956, as the case may be, such amount of excess or lower depreciation shall be indicated clearly in the cost records. The cost records shall also show the effect of such excess or lower depreciation, as the case may be, o....
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....is of charging such amount, including lump sum payment and its treatment shall be indicated in the cost records. 10. RESEARCH AND DEVELOPMENT EXPENSES: (1) The proper records showing the details of expenses, if any, incurred by the company on the research and development work of the activities covered under these rules shall be maintained. (2) The method of charging these expenses to the cost of activities under reference and all other products or activities shall be indicated in the cost records. Where the utility of such research and development work extends over more than one financial year, such expenses shall be treated as deferred revenue expenses and charged to the cost of activities under reference and all other products if any, on equitable and reasonable basis and applied consistently. The detailed criteria on which it has been decided to extend the utility period of these expenses to more than one financial year shall be disclosed in the cost records. The following criteria, which are only....