CMA Intermediate · Corporate Accounting and Auditing · Cost Audit
Mehta Chemicals Ltd received the cost audit report on 5 March. The report has a qualification on overhead absorption. Within how many days of receipt must the company furnish the report, with full information and explanation on every reservation or qualification, to the Central Government?
The company must furnish the report to the Central Government within thirty days from the date it receives a copy. Section 148(6) also requires full information and explanation on every reservation or qualification in the report, such as the one on overhead absorption.
- AThirty daysCorrect
- BFifteen days
- CSixty days
- DNinety days
Explanation
Section 148(6) requires the company to furnish the Central Government with the cost audit report within thirty days from the date of receipt of a copy, along with full information and explanation on every reservation or qualification. So the deadline is 30 days from 5 March.
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