Govt to crack whip on firms not filing cost audits

At present, there are 5,000 firms that need to file cost audits. However, only 1,000 companies actually do so

The Ministry of Corporate Affairs is planning to pull the plug on companies that do not file cost audits in order to ensure that these businesses pay accurate corporation taxes and consumers know the pricing of products.

A senior official said that the ministry will examine companies across at least 10 sectors to identify companies that do not hire cost accountants and file reports. Textiles, machinery, insecticides, milk powder, glass, tea and coffee are some of the sectors that will be monitored.

The move will ensure that firms do not evade corporation tax, the official explained. Cost audit, which reflects