TaxTMI 
TaxTMI 
The Cost Accounting Records (Telecommunication Industry) Rules, 2011
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....208;‐ (a) "Act" means the Companies Act, 1956 (1 of 1956); (b) "compliance report" means the compliance report duly authenticated and signed by a cost accountant in the specified form of compliance report; (c) "Cost Accountant" for the purpose of these rules means a cost accountant as defined in clause (b) of sub‐section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who is either a permanent employee of the company or holds a valid certificate of practice under sub‐section (1) of section 6 and who is deemed to be in practice under sub‐section (2) of section 2 of that Act and includes a firm of cost accountants; (d) "Cost Accounting Standards" means the standards of cost accounting, issued by the Institute; (e) "cost records" means books of account relating to utilization of materials, labour and other items of cost as applicable to the production, processing, manufacturing or mining activities of the company; (f) "Form‐A" means the form specified in these rules for filing compliance report and other documents with the Central Government in the electronic mode; ....
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....ernet or Broadband or Wireless Access service; (x) Infrastructure Provider (IP‐1); (xi) Passive Telecom Infrastructure including Telecom Tower Facilities; (xii) Cable Landing Stations; and (xiii) Any other related, allied, intermediate or support services in relation to telecommunication activities not indicated above. (m) "turnover" means total turnover made by the company from the sale or supply of all products or services during the financial year and it includes any turnover from job work or loan license operations and the subsidies or grants or incentives received but does not include any non‐operational income; (n) all other words and expressions used in these rules but not defined, and defined in the Act and rules made under clause (d) of sub‐section (1) of section 209 of the Act shall have the same meanings as assigned to them in the Act or rules, as the case may be. 3. Application, - These rules shall apply to every company, including a foreign company as defined under section 591 of the Act, which is engaged in the production, processing, manufacturing, or rendering of telecommunication activities ....
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....nd explained. (6) All such cost records, cost statements and reconciliation statements, maintained under these rules, relating to a period of not less than eight financial years immediately preceding a financial year or where the company had been in existence for a period less than eight years, in respect of all the preceding years shall be kept in good order. (7) Every person, referred to in sub‐section (6) and (7) of section 209 of the Companies Act, 1956 (1 of 1956), shall take all reasonable steps to secure compliance by the company with the provisions of these rules in the same manner as he is liable to maintain accounts required under sub‐section (1) of section 209 of the said Act. 5. Form of the Compliance Report, - Every company to which these rules apply shall submit a compliance report, in respect of each of its financial year commencing on or after the date of this notification, duly certified by a Cost Accountant, along with the Annexure to the Central Government, in the specified form. 6. Time limit for submission of Compliance Report, - Every company shall submit the compliance report referred to in rule 5 to the Central Government within a per....
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....e company), have examined the books of account prescribed under clause (d) of sub‐section (1) of section 209 of the said Act, and other relevant records for the period/year ............................. (mention the financial year) and certify as under: 1 I or We have or have not obtained all the information and explanations, which to the best of my or our knowledge and belief were necessary for the purpose of this compliance report. 2 In my or our opinion, proper cost records, as per the Cost Accounting Records (Telecommunication Industry) Rules, 2011 prescribed under clause (d) of sub‐section (1) of section 209 of the Companies Act, 1956, have or have not been maintained by the company so as to give a true and fair view of the cost of production or operation, cost of sales and margin of all the products and activities of the company. 3 Detailed unit‐wise and product or activity‐wise cost statements and schedules thereto in respect of the product groups or activities are or are not kept in the company. 4 In my or our opinion, the said books and records give or do not give the information required by the Companies Act, 1956 in the manner so requi....
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....959 (23 of 1959) and who is either a permanent employee of the company or holds a valid certificate of practice under sub-section (1) of section 6 and who is deemed to be in practice under sub-section (2) of section 2 of that Act and includes a firm of cost accountants; (d) "Cost Accounting Standards" means the standards of cost accounting, issued by the Institute; (e) "cost records" means books of account relating to utilization of materials, labour and other items of cost as applicable to the production, processing, manufacturing or mining activities of the company; (f) "Form-A" means the form specified in these rules for filing compliance report and other documents with the Central Government in the electronic mode; (g) "Form-B" means the form of the compliance report and includes Annexure to the compliance report; (h) "Generally Accepted Cost Accounting Principles" means the principles of cost accounting issued by the Institute; - 1 - (i) "Institute" means the Institute of Cost and Works Accountants of India constituted under the Cost and Works Accountants Act, 1959 (23 of 1959); (j) "product" means any tangible or intangible good, material, substance, a....
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....ies or grants or incentives received but does not include any non-operational income; - 2 - (n) all other words and expressions used in these rules but not defined, and defined in the Act and rules made under clause (d) of sub-section (1) of section 209 of the Act shall have the same meanings as assigned to them in the Act or rules, as the case may be. 3. Application, - These rules shall apply to every company, including a foreign company as defined under section 591 of the Act, which is engaged in the production, processing, manufacturing, or rendering of telecommunication activities and wherein, the aggregate value of net worth as on the last date of the immediately preceding financial year exceeds five crores of rupees; or wherein the aggregate value of the turnover made by the company from sale or supply of all products or activities during the immediately preceding financial year exceeds twenty crores of rupees; or wherein the company's equity or debt securities are listed or are in the process of listing on any stock exchange, whether in India or outside India: Provided that these rules shall not apply to a body corporate governed by any special Act. 4. Mainten....
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.... is liable to maintain accounts required under sub-section (1) of section 209 of the said Act. 5. Form of the Compliance Report, - Every company to which these rules apply shall submit a compliance report, in respect of each of its financial year commencing on or after the date of this notification, duly certified by a Cost Accountant, along with the Annexure to the Central Government, in the specified form. 6. Time limit for submission of Compliance Report, - Every company shall submit the compliance report referred to in rule 5 to the Central Government within a period of one hundred and eighty days from the close of the company's financial year to which the compliance report relates. 7. Authentication of Annexure to the Compliance Report, - The Annexure to the compliance report shall be approved by the Board of Directors and certified by the Cost Accountant before submitting the same to the Central Government by the company. 8. Penalties, - (1) If default is made by the Cost Accountant in complying with the provisions of these rules, he shall be punishable with fine, which may extend to five thousand rupees. (2) For contravention of these rules, - (a) the compa....
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.... List of attachments Remove attachment Verification: To the best of my knowledge and belief, the information given in this form and its attachments is correct and complete. I have been authorized by the Board of directors' dated (DD/MM/YYYY) resolution number To sign and submit this form. I am authorized to sign and submit this form. To be digitally signed by: Managing Director or director or manager or secretary (in case of an Indian company) or an authorized representative (in case of a foreign company) A Digital Signatures *Designation *Director identification number of the director or Managing Director; or Income-tax PAN of the manager or of authorized representative; or Membership number, if applicable or income-tax PAN of the secretary (secretary of a company who is not a member of ICSI may quote his/her income-tax PAN) Director of the company Digital Signatures Director identification number of the director Modify Check Form Pre-scrutiny Submit This e-form has been taken on file maintained by the Central Government through electronic mode and on the basis of statement of correctness given by the filing c....
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....ency or give a qualified report, he shall indicate the same against the relevant para. (iii) Briefly give your observations and suggestions, if any, relevant to the maintenance of cost accounting records by the company. (iv) Cost accountant may use separate sheet(s) for (ii) and (iii) above, if required. ANNEXURE TO THE COMPLIANCE REPORT [See rule 2 and rule 5] 1. GENERAL: a) Name of the company: b) Registered office address: c) Financial year to which the Compliance Report relates. 2. QUANTITATIVE INFORMATION: Sno. Name of the Product or Service Group Unit Annual Production (Qty.) Net Sales (Qty.) (Value in Rupees) A Produced or Manufactured Product Groups 1. 2. 3. etc. B Services Groups 1. 2. 3. etc. C Trading Activities (Product Group- wise) 1. 2. 3. etc. D Other Income Total Income as per Financial Accounts - 9 - 3. RECONCILIATION STATEMENT: Net Margin (Profit or Loss) as per Cost Accounts (In Rupees) A. From Produced or Manufactured Product Groups B. From Services Groups C. From Trading Activities Total as per Cost Accounts Add: Incomes not considered in Cost Accounts (if a....
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....umables and spares Power and fuel Interconnection: a) Pass Through Charges - 12 - Particulars Current Year Previous Year b) Port charges c) Others Passive Infrastructure Charges Insurance Charges (Network Elements) Outsourcing Charges Others Sub-total (G) H. Other Cost: Corporate office expenses Common cost Loss on sale of fixed assets (net) Others Sub-total (H) I. Finance charges: Interest Bank charges Others Sub-total (I) Total Cost (A to I) Profit or (loss) before tax Total Capital Employed Return on Capital Employed (%) Return on Turnover (%) PROFORMA 'B' Product or Network Service-wise Costing Profit & Loss Statement Name of the Company: Name of Service: Licensed Area (if any): Period: (Rs. In Lacs) Particulars Products or Network Services against each service - 13 - A B C etc. Total Revenue (Net of Taxes) Sales or Services Advertisement Content Sale Rentals Others Total Revenue (I) Direct Cost: A. Employee cost: Salaries, Wages, Incentives and Allowances Contribution to Provident fund etc. Staff Welfare Expenses Medical ....
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....es Insurance charges (Other than Network Elements) Communication costs Electricity Traveling and conveyance expenses Legal and professional charges Printing and Stationary Audit fees Maintenance Building Others Outsourcing Charges Billing Services Other administrative activities Others Sub-total (B) C. Network Operating cost: Leased Circuits and Gateway Charges Royalty or Fee for technical know how Rent (Network elements equipments and cell sites) Power and fuel Interconnection: i) Port charges X Y - 17 - Particulars Network Elements X Y Z etc Total ii) Others Passive Infrastructure Charges Outsourcing Charges for network element equipments Others Sub-total (C) D Government charges: WPC Charges - DOT ( other than on revenue sharing) Paid to Government agencies other than DOT Sub-total (D) E Depreciation Building Plant and Machinery Others Sub-total (E) F Leased Rentals Equipment Real Estate Others Sub-total (F) G Total Network Direct Cost ( A+B+C+D+E+F) H. Support Function cost as per Proforma E Sub Total H Total (G+H) X Y ....
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....ucts or Network Services A B C Etc Total (a) Network element wise Capital Employed Radio Network: X Y Z Etc Subtotal ( A) (b) Support Function or Departments Administration Billing Branch Office Corporate Office Customer Care Finance and Accounts HR Insurance IT or EDP Legal or Regulatory X - 23 - Particulars Products or Network Services A B C Etc Total Maintenance Marketing and Sales Planning and Development Quality Stores or Logistics Any Other Item (Specify) Subtotal (b) Total (a + b) PROFORMA - 'G' Profit and Loss Reconciliation Statement Name of the Company: Period: (Rs. in Lacs) Particulars Revenue Cost Net Profit or (Loss) Service 1 Service 2 Service 3 Etc. Total Adjustments: Return on capital employed on network elements Non regulated business Elimination of inter business transactions Non relevant items: - Return on investments - Non operating income - Interest costs and financial charges - Corporate Tax - Other taxes (if any) - Amortization of Goodwill - Return on investments - Non operating income - Interes....