Free tool
Cost Audit Applicability Checker
Answer a few questions about your company to see whether cost records and cost audit may apply under the Companies (Cost Records and Audit) Rules, 2014.
Checked: September 2026
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How this check works
Cost records may apply to companies producing goods or providing services in the sectors listed in Table A and Table B of the Companies (Cost Records and Audit) Rules, 2014, where overall turnover in the previous financial year is ₹35 crore or more. Micro and small enterprises are excluded, and ordinary trading is generally not covered, except for the specified medical devices.
Cost audit applies at higher thresholds: ₹50 crore overall turnover with ₹25 crore covered turnover for Table A products, and ₹100 crore overall turnover with ₹35 crore covered turnover for Table B products. Following ICMAI's Revised FAQs, 2024, covered turnover from both tables is aggregated, and the overall-turnover threshold decides which table's products are audited.
Export, SEZ and captive-generation exemptions can change the audit position, and each company's operations must be considered individually. The cost audit and cost records page sets out the forms, the dates and who can be the cost auditor.
Use the covered-sector search carefully
The existing checker includes a searchable sector reference. A code alone does not establish applicability: consider the rule description, company status, overall and covered turnover and applicable exemptions. GST HSN and the tariff notation in the rules must not be treated as automatically interchangeable.