Cost audit regulator for real estate, hospitals and educational institutions
Maintaining transparency is a major challenge for developing India and in order to curb malpractices and ensure stoppage of transactions under the table, the government on Monday ordered maintenance of cost records and audit for real estate companies, hospitals and educational institutions.
The move will bring in the much-required transparency in fixing of prices in areas like housing and treatment costs at hospitals, while keeping a check on the fee charged by private educational institutions and the consumer will be hugely benefitted.
These crucial sectors were out of the ambit of cost audit so far and the consumers were always at the receiving end as there was no clear mandate on the real estate companies, hospitals and educational institutions. They often over charged the home buyers, patients and students.
The notification mentioned that from now onwards the cost records have to be maintained on a regular basis. The calculation of per unit cost of production or cost of operations, cost of sales and margin for each of its products and activities have to be maintained so that the profit margins do not become exorbitant for the companies. These records have to be presented for every financial year on monthly or quarterly or half-yearly or annual basis.
Source- The Times of India (Mumbai Edition)
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