Source Money control
Corporate Affairs Min tweaks cost audit norms
According to the Ministry, companies engaged in the production of goods in strategic sectors such as machinery and mechanical appliances used in defence, space and atomic energy sectors excluding any ancillary items would have to carry out cost audits.
The government today said only certain class of companies, including those producing defence equipment, would be subject to cost audit. Companies engaged in activities that involve public interest and those into making certain kinds of medical devices would also be covered under the new rules. The Corporate Affairs Ministry, which is implementing the new companies law, has made changes to cost audit rules.
In a late evening press release, the Ministry said the new rules would supersede those notified under Companies Act, 1956. "The new rules specify four classes of companies which shall be required to maintain cost records and who will be subject to cost audit," it said. The latest notification pertains to Companies (Cost Records and Audit) Rules, 2014 under section 148 of the Companies Act, 2013. According to the Ministry, companies engaged in the production of goods in strategic sectors such as machinery and mechanical appliances used in defence, space and atomic energy sectors excluding any ancillary items would have to carry out cost audits. Entities engaged in manufacturing of arms and ammunitions would also come under this ambit. Besides entities engaged in an industry regulated by a sectoral regulator or a Ministry or department of the central government would be covered under cost audit rules. These include aeronautical services of air traffic management, roads and other infrastructure projects, drugs and pharmaceuticals, sugar and industrial alcohol, and fertilizers
Companies operating in areas involving public interest such as railways and firms that are into production, import and supply or trading of certain medical devices would also have to maintain cost records. "... in the case of a company engaged in multiple products, any product or device for which the individual turnover (from such specific product or device) is Rs 10 crore or more, or one third of the turnover, whichever is less," would be covered, as per the Ministry's notification. With regard to companies that are into one specific product or device, the cost audit rules would be applicable if the the entity has net worth of Rs 150 crore or more or the turnover is Rs 25 crore or more
MCA circular
file:///C:/Users/home/Downloads/cost_audit_rules_2_30062014.pdf
Source Business standard
| Chinese industrial parks to have same incentives as SEZs, NMIZs |
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New Delhi, 30 June India and China have finally signed the much- awaited memorandum of understanding (MoU) on the creation of industrial parks, with the Indian government agreeing to grant them the same status in line with the special economic zones ( SEZ) and National Investment & Manufacturing Zone ( NIMZ). "The parties confirm that the cooperation on industrial parks shall enjoy the support that the Chinese government grants to overseas economic and trade cooperation zones, as well as the benefits not lower than that envisaged under the prevailing policy frameworks in India, such as Special Economic Zone ( SEZ), National Investment & Manufacturing Zone ( NIMZ), and existing policies of the state governments, as applicable," stated the MoU, signed in Beijing during the visit of Vice- President Hamid Ansari to that country. The decision to set up Chinese industrial parks was approved by the Cabinet Committee on Economic Affairs last week. According to a senior official, who refused to be named, said according same status to the industrial parks as SEZs and NIMZs is bound to result in an uproar. " Don't forget these are Chinese. They have been flooding our markets for ages now. India has filed the maximum number of anti- dumping cases and duties on Chinese goods. Now, if we are inviting them to come and produce here, coupled with tax relaxations, there is bound to be sharp criticisms and protests. However, we need to keep in mind that India needs investment and we must allow them to come in," the official told Business Standard. Some of the incentives enjoyed by SEZs and NIMZs are related to tax relaxations. SEZs enjoy 100 per cent income tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for the first five years, 50 per cent for the next five years thereafter and 50 per cent of the ploughed back export profit for next five years. These conclaves also enjoy exemption from minimum alternate tax ( MAT) under section 115JB of the I- T Act. However, in 2011 the government had imposed 18.5 per cent MAT on the book profits of special economic zone developers and units. The matter is under litigation now. Besides, NIMZ, under the National Manufacturing Policy, has provisions of tax incentives to small and medium enterprises ( SMEs). The MoU also stated the parks will be monitored by an Industrial Park Cooperation Working Group, which will meet alternately in India and China to assess the quantum of investments and progress of the various investment proposals that comes in. The working group will have equal number of representatives from both countries to identify and agree upon the detailed modalities for implementing the cooperation under this MoU. The idea to have Chinese industrial parks was mooted by the previous United Progressive Alliance ( UPA) government to lessen the soaring trade deficit with the country. During the 5th India- China strategic dialogue held in August 2013, both sides had identified five states — UP, Andhra Pradesh, Gujarat, Maharashtra and Karnataka — where the parks would be set up. In October, a Chinese delegation had visited the potential sites in these states. However, the plan got delayed with severe resistance from some parts of the Indian industry, especially SMEs which were apprehensive that this will give China leeway to dump goods into the markets here. And a government, which was then heading for the general elections, did not take the risk of going ahead with the proposal any further. According to officials, the Chinese embassy had even written to the Uttar Pradesh State Industrial Development Corporation seeking 400 acres for the project, with special focus on manufacturing electronics. For full reports, visit www. business- standard. com India, China sign three MoUs India and China on Monday signed three key memoranda of understanding ( MoU), including one on industrial parks and flood data of the Brahmaputra river. The agreements were signed in the presence of Vice- President Hamid Ansari and his Chinese counterpart Li Yuanchao. The third MoU will help the two countries establish a framework for regular interactions between administrative officials to share experiences and learn from each other's best practices. PTI (left) greets Chinese President Xi Jinping PHOTO: PTI |
Company Secretary
Chennai
93810 11200
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