General Circular No 15/2011 dated 11th April 2011 lays down the procedure for appointment of cost auditor by companies. Clause (f) of the circular states, the company needs to e-file the application with the Central Government on www.mca.gov.in portal, in the prescribed form 23C within ninety days from the commencement of each financial year.

Additional fees on late filing of the form 23C were given by the notification 617(E) issued on 7th Aug, 2012 .

Amendments were made to the circular 15/2011 vide General Circular No 36/2012 dated 6th November, 2012.

The latest circular 14/2013 issued on 3rd September, 2013 states that the date of filing form 23C has been extended up to 31st October, 2013 and relaxation has been made in the additional fees.

It means that For Financial Year 13-14 Commencing on 1st April, 2013 , the e-filing of form 23C for appointment of cost auditor can be done, with normal applicable fees, up to 31st Oct 2013 thereafter Applicable Additional Fees are Payable.

Similarly Applicable Additional Fees are Payable for Financial Years Prior to 13-14

The other procedure is:

  1. On e- filing form 23C, the same shall be deemed to be approved by the Central Government, unless contrary is heard within 30 days from the date of such filing
  2. If within 30days, the Central Government directs the company to re-submit the said application, the period of 30 days for deemed approval shall be counted from re-submission by the company
  3. After approval from the central government, the company shall send the formal letter of appointment to the cost auditor, as approved by the board
  4. Within 30 days of the receipt, the cost auditor shall inform the central government by e-filing form 23D along with the copy of appointment letter

(Compiled by – CMA Sneha Nagda In Guidance Of CMA Rohit J Vora, Controlling Partner of Rohit & Associates, who can be contacted at Contact@rohitvora.com or on his cell No. 09820217893)

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