Tuesday, August 29, 2006

The broader sketch of areas in which u can find cost accountants are engaged.

This should primarily contain each practising members area ofoperations classified as One major area and other area based onrevenue generation or clientele.This would focus the institute on marketing services of CostAccountants.The PCAs need not be asked to divulge clientele or revenueinformation but simply a self declaration as to the activities.The areas under coverage should be broadly:
1.Maintenance of Books accounts(Including Cost accounts wherenecessary).
2.Engaged in Establishment and design(customisation)of Accounts(Financial as well as Cost accounts).
3.Internal Audit(Including design and certification).
4.Rendering Accounting services for non-corporates.
5.Engaged in Consultancy services relating to various Tax laws forbusiness.
6.Acting as Authorised representatives under the provisions ofvarious laws(Taxation and others)
7.Rendering Management Consultancy.
8.Engaged In Statutory Cost Audit.
9.Engaged in Attest Functions under VAT and Central Excise andCustoms Acts.
10.Engaged in rendering Financial services(Brokering,Portfoliomanagement.
Any Other Services if that is what the Practising CA is engaged in.
This would finally help in pooling resources of expertise to pass onto the next breed of Cost accountants in the make.I think council members will make this concscious decision soonerthan later.
In addition they can be engaged as consultants in Project management ,Specific assignments from Governments etc

Saturday, August 26, 2006

Cost Accountants to establish Professional accounting firms to help business maintain accounts in complinace with various laws.

Accounting services as distinct from audit and attest services are well developed in many countries.As a Professional Accountant A cost accountant in practice can help business establish a well knit accounting mechanism.Establish internal controls and perform internal audit.
Accounting function is largely inhouse in organised business in india but sooner than later this function will be a outsourced function with comparative cost-benefit.Practising Cost Accountants should sharpen their edges to deliver the business the value addition needed with respect to various compliances.
In addition Cost Accounting system whereever prescribed are to be guided by a cost accountant for the industry and business houses to comply with.
Many business entity that have been prescribed to maintain cost accounts find it difficult to comply for want of trained Cost accountants.The role of cost accountants multiplies here.Infact if the practising cost accountants keep track of this many companies will start complying with the provisions.
The gist of applicability is mentioned below:
Books of account to be kept by company:

209(1) Every Company shall keep at its registered office proper books of account with respect to -
(a) ......
(b) ......
(c) .....
(d) in the case of a company pertaining to any class of companies engaged in production, processing, manufacturing or mining activities, such particulars relating to utilisation of material or labour or to other items of cost as may be prescribed, if such class of companies is required by the Central Government to include such particulars in the books of account:

Provided that all or any of the books of account aforesaid may be kept at such other place in India as the Board of directors may decide and when the Board of directors so decides, the company shall, within seven days of the decision, file with the Registrar a notice in writing giving the full address of that other place.

In exercise of the powers conferred by sub section (1) of section 642 read with clause (d) of sub
section 209 of the Companies Act, 1956, (1 of 1956), the Central Government hereby makes the following rules,
namely:-
1. Short Title and Commencement:-
(1) These rules may be called the cost Accounting Record []* Rules, 1967.
(2) They shall come in to force on the 1st day of October 1967.
2. Application:- They shall apply to every company engaged in the production or manufacturer of []* excepting
those companies falling under the category of small scale industrial units.
Explanation - For the purpose of this rule, the expression "small scale industrial undertaking" means a
company -
(a) [the aggregate value of the machinery and plant installed wherein does not exceed The limit as
specified for a small scale industries (Development and regulation ) Act.1951 (65 of 1951), as on the last date of
the preceding financial year and]1
(b) [the aggregate value of the realization made by the company from the sale or supply of all its products
during the preceding financial year does not exceed ten crore rupees.]2
3. Maintenances of Records:-
(1) Every Company to which there rules apply shall in respect of easy of its accounting years commencing
on or after the 1st day of October, 1967,[till the 31st day of March,2000]3 keep proper books of account
containing inter alia particulars specification in I and II annexed to these rules relation to utilization of material,
labour and other items of cost so far as they are applicable to it.
(2) The book of account aforesaid shall be kept in such a way as to make it possible to calculate the cost of
production of ----produced during the financial year of the Company (hereinafter referred to
the relevant period) from the particulars entered therein.
[(3) Every company to which these rules apply shall, in respect of each of its financial year commencing
on or after the 1st day of April, 2000 keep proper books of account containing, inter alia, the particulars
specified in Schedule III and Proforma mentioned in the said Schedule annexed to these rules relating to the
utilization of materials, labour and other items of cost in so far as they are applicable to cycles and components
thereof.
Provided that if the said company is manufacturing any other product or is engaged in other activities in addition
to manufacture of cycles and components thereof, the particulars relating to utilization of materials, labour and
other items of cost in so far as they are applicable to such other products or activities shall not be included in the
cost of cycles and components thereof.
(4) The books of accounts referred to in sub-rules(3) shall be kept on a regular basis in such a manner as
to make it possible to calculate the cost of production and cost of sales of all makes of cycles and components
thereof for every financial year from the particulars entered therein and every such books of account and the
proforma specified in Schedule III annexed to these rules shall be completed not later than ninety days from the
closing of the financial year of the company to which they relate.
(5) Statistical and other records shall be maintained in accordance with the provisions of the Schedule III
annexed to these rules, which shall be such as to enable the company to exercise as far as possible, control over
the various operations and costs with a view to achieve optimum economies in cost and provide the necessary
data required by the Cost Auditor to suitably report on all the points referred to in Cost Audit (Reports)
Rules,1996.
(6) It shall be the duty of every person, referred to in sub-section(6) and sub-section(7) of section 209 of
the Companies Act 1956 (1 of 1956), to take all reasonable steps to secure compliance by the company with the
provisions of sub-rules (1), (2), (3), (4) and (5) of this rule in the same manner as he is liable to maintain
accounts required under sub-section(1) of section 209 of the said Act".]4
4. Penalty:- If a company contravent the provision of rule 3, the company and every officer of the company
who is in default [including the person referred to]5 in sub-section (6 of section 209 of the Company Act 1956 (1
of 1956) shall be punishable with fine which may extend to five hundred rupee and where the contravention is a
continuing one, with a further fine which may extend to fifty rupees for every day after the first during which
such contravention continue.

Tuesday, August 22, 2006

Valuer under wealth tax act

(7) A valuer of stocks, shares, debentures, securities, shares in partnership firms and of business assets, including goodwill but excluding those referred to in sub-rules (2) to (6) and (8) to (11), shall have the following qualifications, namely :
(i) he must be a member of the Institute of Chartered Accountants of India or the Institute of Cost and Works Accountants of India 62[or the Institute of Company Secretaries of India]; and
[(A) he must have been in practice as a chartered accountant or a cost and works accountant or a company secretary for a period of not less than ten years and his gross receipts from such practice should not be less than fifty thousand rupees in any three of the five preceding years, or]
(B) he must be a person formerly employed
(a) in a post under Government as a gazetted officer, or
(b) in a post under any other employer carrying a remuneration of not less than Rs. 64[2,000] per month,
and, in either case, must have retired or resigned from such employment after having rendered service for a period of not less than 65[ten] years in the field of audit and accounts or taxation work 66[, or]
66[(c) as a Company Secretary 67[or a Deputy Company Secretary] or an Assistant Company Secretary in a post carrying a remuneration of not less than Rs. 68[2,000] per month and must have retired or resigned from such employment after having rendered service for a period of not less than 69[ten] years.]

Sunday, August 20, 2006

Cost Accountant and Competition Act

Section 2(g) of the rules of the competition rules and section 35 of the competition act enables a cost accountant in practice as a counsel on behalf of the client to represent before the commission.

Appearance before Commission
35. A complainant or defendant or the Director General may either appear in person or authorise one or
more chartered accountants or company secretaries or cost accountants or legal practitioners or any of
his or its officers to present his or its case before the Commission.
Explanation.—For the purposes of this section,—
(a) "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1)
of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a
certificate of practice under sub-section (1) of section 6 of that Act;
(b) "company secretary" means a company secretary as defined in clause (c) of sub-section (1) of
section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate
of practice under sub-section (1) of section 6 of that Act;
(c) "cost accountant" 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 has obtained a certificate of
practice under sub-section (1) of section 6 of that Act;
(d) "legal practitioner" means an advocate, vakil or an attorney of any High Court, and includes a
pleader in practice.

1
I
2. Definitions –
(1) In these Regulations, unless the context otherwise requires:
(a) "Act" means the Competition Act, 2002 (12 of 2003);
(b) "Bench" means Bench constituted under Section 22 of the
Act and includes the Principal Bench, Additional Bench,
Mergers Bench and Special Bench. Special Bench means
larger Bench constituted under sub-section (4) of Section 23
of the Act.
(c) "Chairperson" means the Chairperson appointed under
Section 8 and includes the senior-most Member acting as
Chairperson under sub-sections (4) of Section 10 and the
senior most Member discharging the functions of the
Chairperson under sub-section (5) of Section 10 of the Act;
(d) "Commission" means the Competition Commission of India
established under Section 7 of the Act;
(e) "Complaint" means and includes complaint or reference falling
under Section 19 of the Act;
(f) "Complainant" means a person who or the Central
Government or a State Government or a Statutory Authority
which makes complaint to the Commission.
(g) "Counsel" means and includes a legal practitioner, a
chartered accountant, a company secretary, a cost
accountant as defined in Explanation to Section 35 of the
Act;