# Cost Records Maintenance (CRA-1)

> Companies in notified sectors with overall turnover of ₹35 crore or more in the previous year must maintain cost records in Form CRA-1 — capturing material, employee costs, utilities, overheads and production for each covered product, reconciled with the financial accounts. The records must be kept on a regular basis, not compiled at year-end, and preserved for eight years.

Practice: CMA & Cost Accounting — https://www.industax.com/services/cma-cost-accounting/

Well-kept cost records double as a management tool: product-level profitability, cost per unit and variance tracking.

We design the cost accounting framework, maintain records monthly or quarterly, and reconcile them with the books.

## Key facts

| Item | Detail |
| --- | --- |
| Threshold | ₹35 crore turnover in notified sectors |
| Form | CRA-1 |
| Reconciliation | With financial accounts |
| Retention | 8 years |

## Who needs this

- Manufacturers in notified sectors
- Companies preparing for cost audit
- Businesses wanting product costing

## What's included

- Framework design
- Periodic record maintenance
- Reconciliations

## Documents

- Production data
- Purchase and consumption records
- Payroll and overhead data

## Process

1. **Design** — Cost centres and allocation bases.
2. **Record** — Costs captured regularly.
3. **Reconcile** — Matched with financial books.

Work that legally requires a practising Cost Accountant is signed by a partner professional; Indus Tax coordinates it.

## FAQs

### Which sectors must maintain cost records?

Those listed in the Companies (Cost Records and Audit) Rules — including many manufacturing, mining, telecom, power and healthcare activities. We check your products against the notified list.

### Do service companies need cost records?

Only those in notified service sectors such as telecom, power distribution or certain healthcare services.

### Can cost records be kept in ERP?

Yes, electronically, as long as they meet the CRA-1 requirements and are accessible.

## Official sources

- MCA — Companies (Cost Records and Audit) Rules, 2014: https://www.mca.gov.in/

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Canonical page: https://www.industax.com/services/cma-cost-accounting/cost-records-maintenance
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.