NO NEED TO FILE FORM 23C

[Manoj Singh Bisht]

Posting again as a new email for convenience.

Dear All,

Why are you filing Form 23C for cost auditor's appointment for conducting cost audit for the year 2014-15 !

Form 23C was required to be filed for approval of central govt as per sub-section (2) of Section 233B of the Act.

The condition of Govt. approval is not prescribed under the new Companies Act, 2013.

It is based on shareholder approval regime now (please compare section 148 of the Companies Act, 2013 and rule 14 of the Companies (Audit and Auditors) Rules, 2014 with Section 233B of the old Companies Act, 1956 and rules made under the old act)

Since approval of Central Government is not required and Rule 14 also does not stipulate form to be filed for intimation of appointment of Cost Auditor, I am of the view that Form 23C is not at all required to be filed.

If any form was required to be filed for the said appointment, the same would have been stipulated in the Companies (Audit and Auditors) Rules, 2014 . (Please note: Form with respect of appointment of Statutory Auditor are given in the said rules but no form is given with respect to appointment of Cost Auditor)

For appointment of cost auditor -relevant Rule is Rule 14 of Companies (Audit and Auditors) Rules, 2014. Rules for cost audit are not issued but rule for appointment of cost auditor (i.e. Rule 14 of Companies (Audit and Auditors) Rules, 2014) is issued under Section 148(3) of the Companies Act, 2013.

So please appoint cost auditor subject to shareholders approval and obtain shareholders approval in general meeting (AGM or EGM as the case may be). No need to file any form. 

Pls. revert, in case any clarification is required.

Thanks

[sonam jain]

Dear Manojji,

Kindly send me the board resolution for the appointment of cost auditor for the year 2014-2015.

Also, please find as attached the BR drafted by us.

The Chairman informed the Board that .............. have given their consent to act as cost auditors for the financial year 2014-15 and laid on the table the certificate received from .....................

It was accordingly

“RESOLVED THAT pursuant to section 148 of the Companies Act, 2013 and subject to the approval of Central Government, ......................... be and hereby appointed as cost auditors of the Company to conduct audit of .........................by the Company for the year ending on 31^st March, 2015 at an expense of Rs. 45,000 (Rupees Forty Five Thousand) plus out-of-pocket expenses.

RESOLVED FURTHER THAT any of the Directors of the Company be and is hereby authorized to submit the necessary application in necessary e-form  to the Central Government and to do all the acts as may be necessary”

Now, I want to ask you this, if on the same date of appointment if I put the same amount of remuneration which has been paid to the auditor since four years , is it valid?

Or after the appointment of auditor ssay as on 20.06.2014, should we pass another resolution in EOGM to decide the remuneration even if the amount is same since 4 years.

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[Manoj Singh Bisht]

Sonam,

Remuneration need not be based on previous years. Board can recommend remuneration irrespective of remuneration paid during last 4 years and the same would be subject to approval of shareholders.

Central govt approval is not required now. Therefore remove "subject to central govt approval".

 Dont use the word expense. Use the word remuneration. Also state that the remuneration shall be subject to approval of shareholders.

Thanks

Manoj

[SUDHIER KUMAR GUPTHA]

Content found on CMA Institute's Portal.

http://www.icmai.in/upload/Institute/Communique-President-18062014.pdf

Dear Professional Colleagues, 

 

Thank you for your patience on the Companies (Cost Accounting Records) Rules, 2013 and the Companies (Cost Audit Report) Rules, 2013, that are yet to be notified under the Companies Act 2013. We have been in constant touch with the 

MCA officials for the last few months. After the new government took charge in May, we had personal interactions with the MCA officials and they are in process of publishing the cost rules. 

 

We expect the cost rules to be released in the next few days. We are hopeful that with the responses of our professional fraternity at large and the continuous liaison with the Ministry, the final cost rules will be in the interest of the Indian 

Economy, Industry, Society at large as well as the profession

On Fri, Jun 20, 2014 at 12:27 PM, Manoj Singh Bisht <csmano...@gmail.com> wrote:

--

[Manoj Singh Bisht]

Dear all,

Finally my view has been upheld by cost audit branch, mca.

Pls see below:

From: Rakesh...@mca.gov.in 

Subject: Re: Filing of Form 23C for the year 2014-15

Madam,

 

As per section 148 of the Companies Act, 2013, the previous approval of the central government for appointment of cost auditor is not required, as it was required earlier u/s 233B of the Companies Act, 1956. As far any filing requirement to central government in respect of the appointment of cost audit is concerned, the actual position would only get cleared after the notification of cost rules under new act. Therefore, you may wait for the notification of new cost rules which is expected soon.

regards,

AD-RP  

Regards

Manoj 

[Manoj Singh Bisht]

Dear all,

Finally my view has been upheld by cost audit branch, mca.

Pls see below:

From: Rakesh...@mca.gov.in 

Subject: Re: Filing of Form 23C for the year 2014-15

Madam,

 

As per section 148 of the Companies Act, 2013, the previous approval of the central government for appointment of cost auditor is not required, as it was required earlier u/s 233B of the Companies Act, 1956. As far any filing requirement to central government in respect of the appointment of cost audit is concerned, the actual position would only get cleared after the notification of cost rules under new act. Therefore, you may wait for the notification of new cost rules which is expected soon.

regards,

AD-RP  

Regards

Manoj 

On Friday, June 20, 2014, SUDHIER KUMAR GUPTHA <sudhirk...@gmail.com> wrote:

[Manoj Singh Bisht]

Dear all,

Finally my view has been upheld by cost audit branch, mca.

Pls see below:

From: Rakesh...@mca.gov.in 

Subject: Re: Filing of Form 23C for the year 2014-15

Madam,

 

As per section 148 of the Companies Act, 2013, the previous approval of the central government for appointment of cost auditor is not required, as it was required earlier u/s 233B of the Companies Act, 1956. As far any filing requirement to central government in respect of the appointment of cost audit is concerned, the actual position would only get cleared after the notification of cost rules under new act. Therefore, you may wait for the notification of new cost rules which is expected soon.

regards,

AD-RP  

Regards

Manoj 

On Friday, June 20, 2014, SUDHIER KUMAR GUPTHA <sudhirk...@gmail.com> wrote:

[Miss Shanu Bhandari]

Dear Manoj ,

But while filling form 23 D Form for Information by Cost Auditor to Central Government it asks for SRN of 23C. What to do?

Reg

Shanu

On Fri, Jun 20, 2014 at 12:27 PM, Manoj Singh Bisht <csmano...@gmail.com> wrote:

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[Sakshi Vaid]

Dear All,

the period of 90 days has already expired for filing of Form 23C for appointment of cost auditor.

Do we have any clarifications from the ministry regarding filing/non filing of Form 23C?The penalty of non filing is considerably high.

Kindly expedite the matter.

regards
sakshi

On Fri, Jun 20, 2014 at 12:27 PM, Manoj Singh Bisht <csmano...@gmail.com> wrote:

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Kind Regards

CS Sakshi Vaid

Company Secretary

 

[Ritu Jhunjhunwala]

TODAY IS THE LAST DATE FOR FILING 23C

Regards,

Ritu Jhunjhunwala

R. Jhunjhunwala & Co.

Company Secretary

Email : rjhunjhun...@gmail.com

Cell No.: +919748710111

[CS Ankit Misra]

We should wait for final notification of MCA regarding this as 23C is approval of central govt. u/s 233b of CA 1956 and 233b is ineffective w.e.f. 01.04.2014 and now there is no need to take CG approval u/s 148 of CA 2013.

So, no need to waste your 20000 in hurry. MCA must issue notification in public interest as confirmed by CMA president.

--

regards,

ANKIT MISRA

COMPANY SECRETARY

REGENCY HOSPITAL LTD.

KANPUR

8009968692

 Please do not print this email unless absolutely necessary

[Ritu Jhunjhunwala]

so we are not filing 23c 

right?

Regards,

Ritu Jhunjhunwala

R. Jhunjhunwala & Co.

Company Secretary

Email : rjhunjhun...@gmail.com

Cell No.: +919748710111

[CS Ankit Misra]

I have raised ticket at MCA for clarification in this regard and MCA should issue notification in this regard in public interest. I have not filed F 23C for my company. Why should i pay Rs. 20000/- when the same is not required.? 

On Mon, Jun 30, 2014 at 12:43 PM, Sakshi Vaid <sakshi...@gmail.com> wrote:

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[Manoj Singh Bisht]

It asks details of form 23C filed last year and not the current year.

On Mon, Jun 30, 2014 at 11:13 AM, Miss Shanu Bhandari <cs.shanu...@gmail.com> wrote:

[Manoj Singh Bisht]

Pls. read section 148 and Rule 14.

No need of any clarification. 

By the way, rules for cost audit requirements are not yet issued. How do you know whether you require to conduct cost audit or not. ? 

Though i agree that you can always conduct it voluntarily.

[CS Ankit Misra]

YES we should not file F 23C.... further i am also providing you MCA cost audit branch response in respect to ticket raised by me. It is as follows:

Dear Sir/Madam,

Ticket Number 1195820 has been resolved by MCA Service Desk.

Ticket Description: Nature Of Complaint::TECHNICALISSUE
SRN::A00000000
Company Name::
DIN::
:::::::
AS PER NOTIFIED SEC 148 OF COS ACT 2013, COST AUDITOR SHALL BE APPOINTED BY SHAREHOLDER AND CENTRAL GOVERNMENT APPROVAL ROUTE HAS BEEN DISPENSED WITH AS GIVEN IN OLD ACT. FORM 23C IS U/S 233B OF COS ACT 1956 WHICH IS NO MORE APPLICABLE.

SO, WHY W NEED TO FILE 23C AND PAY FEE OF RS. 20000/- WHEN THE SAME IS NOT APPLICABLE.

PLS CLARIFY. 
Solution: Dear Sir/Madam,
Kindly refer the sections notified in place of the old sections as this form shall remain on the site till new form is notified by the ministry.
Thank You 



Thanks,
MCA Service Desk

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[Manoj Singh Bisht]

I am saying this from 1st April. No one is ready to read the act and rules.

Many professionals have already filed the form.

We should read the law and take action on the basis of the law. We should not file a form just because it is given on the MCA website.(It is given for filing form for previous year and not for current year)

[CS Ankit Misra]

No need to waste money. Dnt file

[Manoj Mishra]

open & ambiguous reply in yellow.

if forms remains on site till a new form come then it must be having some purpose to be used.

So kindly advise what does it really means.

Regards

[Manoj Singh Bisht]

in case someone has missed out to file Form 23C last year then how would they file it ? it is kept for that purpose.

[Ritu Jhunjhunwala]

yes 23c is kept for last year only 

for this year new forms will come

Regards,

Ritu Jhunjhunwala

R. Jhunjhunwala & Co.

Company Secretary

Email : rjhunjhun...@gmail.com

Cell No.: +919748710111