Filing of e-Form CRA-4 is a mandatory compliance under the Companies Act, 2013, for those organizations that are subject to cost audit. It is a document created for submitting a cost audit report along with the explanation and required annexes to the Central Government.
This form can be completed by understanding the legal basis, purpose of the form, filing procedure, and deadlines. This blog will help you through the whole process.
Legal Framework Governing e-Form CRA-4
Relevant Rules and Sections governing e-Form CRA-4:
- The Companies Act of 2013 mentions under Section 149(6) that a company should submit its cost audit report to the central government within a time frame of 30 days from the date of receiving it. Some registered private limited companies are bound to file e-Form CRA-4.
- In accordance with Form CRA-4 and Rules 6(6) of Companies (Cost Records and Audit) Rules 2014, a company submits a cost audit together with qualifications or comments from a cost auditor if applicable. It also states that a company must submit all mentioned documents within 30 days of the receipt date.
- As stated in Rule 12 of the Companies (Registration Offices and Fees) Rules of 2014, each company is subjected to paying a filing fee. Besides cost audit report, sharing business audit report is also of utmost importance.
Purpose of Filing e-Form CRA-4
The e-Form CRA-4 enables the following:
- Facilitate the submission of cost audit reports by companies to the government.
- Permit companies to provide elaborate explanations or justifications for observations, qualifications, or reservations that may have been made by the cost auditor in the report.
- Ensure adequacy of cost audit compliances under the Companies Act 2013 section 148 requirements. It’s a part of annual compliances for private limited company.
The cost auditor has to furnish the audit report to the company in Form CRA-3 within 180 days from the end of the financial year. The company in turn has to file Form CRA-4 with the Central Government within 30 days of receipt of the report.
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How to File e-Form CRA-4 for Cost Audit Report?
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Step-by-Step Guide to Filing e-Form CRA-4
The fields of the CRA-4 Form are discussed below, each with an instruction on how to fill it:
Corporate Identity Number (CIN):
Enter the correct CIN of the company. CIN can be obtained by searching the name or registration number of the company on the MCA website. You must ensure the status of the Company is “Active” in the MCA database.
Pre-Fill Button:
You shall enter CIN and click the “Pre-Fill” button on the following page. The system will automatically fill in the name, registered office address, email ID, and phone number of the company.
SRN of CRA-2 or Form 23C:
Provide the SRN number of Form CRA-2, which is related to the appointment of the cost auditor. Then click the “Pre-Fill” button to fill in the financial year for which the cost auditor was originally appointed. If not available, this can be entered manually.
Financial Year:
Provide the starting and closing dates of the fiscal year for which a cost audit was conducted.
Approval Date of Annexure:
Specify the date on which the annexure to the cost audit report was approved by the Board of Directors.
Nature of Business:
Choose whether the company deals in single or multiple products/services using the available radio buttons.
Product/Service Details:
Specify the number of products or services for which the cost auditor has been hired. You must provide detailed information about each product/service, including:
- Goods produced in strategic sectors.
- Goods or services regulated by a sectoral authority or Ministry.
- Goods/services affecting the interest of the public.
- Manufacturing, importation, supply, or trading of medical devices.
Cost Auditor Information:
Enter the particulars of cost auditors appointed, including,
- Auditor’s category (individual or firm)
- Membership number, name, and registration number of the auditor/ firm.
- The names, addresses, email IDs, and dates of the Board meeting approving their appointment.
Cost Audit Report Information:
Provide the cost audit report, which includes the date it was received from the auditor.
Remarks:
Indicate whether the cost audit report is qualified and contains adverse remarks or observations. If so, explain or justify the same.
Declaration and Digital Signature:
Add serial number and date of Board resolution authorizing the signatory to file the form. The form shall be digitally signed by a Director, Managing Director, Manager, Chief Executive Officer, Chief Financial Officer, Company Secretary using their DIN/PAN/Membership Number, as applicable.
Attachment:
Attach a cost audit report in PDF format. Other optional documents can also be attached where necessary.
Salient Features of e-Form CRA-4
Given below are the features of e-Form CRA-4-
- Pre-Fill: Auto-populate is given a CIN/ SRN.
- Attach: This allows users to attach the necessary documents.
- Check Form: This checks the form for errors. You must continue reattempting this until the form has no more mistakes.
- Modify: This enables changes to the form after initial validation.
- Prescrutiny: This provides the final check pre-submission. Internet access is required at this stage.
Compliance Deadlines for Filing CRA-4
Date of the Event: The date when the company receives the cost audit report from the auditor.
Time Limit: It should be filed within 30 days from the date of occurrence of the event.
Additional Fees for Delay:
- Up to 30 days: Double the normal fee.
- 31 to 60 days: Four times the normal fee.
- 61-90 days: Six times the normal fee.
- 91 to 180 days: ten times the normal fee.
- Above 180 days: Twelve times the normal rate.
Fees for Filing e-Form CRA-4
Companies having Share Capital:
- Share capital less than ₹1,00,000 – ₹200 per document.
- ₹1,00,000 to ₹4,99,999 – ₹300 per document.
- ₹5,00,000 to ₹24,99,999 – ₹400 per document.
- ₹25,00,000 to ₹99,99,999 – ₹500 per document.
- ₹1,00,00,000 and above – ₹600 per document.
Companies Without Share Capital:
- Fixed-rate of ₹200 per document.
Additional Tips for Filing a CRA-4
- MCA Portal: Please be aware that to use features like “Pre-Fill” and “Prescrutiny,” you must always have an internet connection.
- Attachments: All attachments must be scanned accurately and should be in PDF format.
- Check Form Validation: To prevent any errors upon submission, the “Check Form” button performs several validation checks.
- Digital Signature Certificate (DSC): It must be registered and valid for the authorized signatory.
- Avoid Delays: The form should be filed within the due date to avoid extra fees.
Related Article: Section 47 of the Companies Act, 2013: Voting Rights
To Wrap Up
Filing e-Form CRA-4 is a very meticulous yet important task for ensuring compliance with the cost audit requirements under the Companies Act, 2013. At each step, this will be a guarantee that everything is correctly done in due time. Always refer to the latest guidelines and keep track of deadlines to avoid penalties. Thus, upon careful preparation, one will be able to submit the e-Form CRA-4 in an orderly and hassle-free manner.
To get expert assistance in filing e-Form CRA-4, visit https://corpbiz.io/.
Frequently Asked Questions
What is e-Form CRA-4?
e-Form CRA-4 is a mandatory form as per the Companies Act, 2013, when a company wants to file the cost audit report with the Central Government. It is filled by all companies other than the exempt ones and those which are under cost audits submission and includes detailed justification and supporting documents.
Who is e-Form CRA-4 applicable to?
e-Form CRA-4 must be submitted by all company’s private, public and foreign ones who are mandated to have a cost audit in compliance with the Companies (Cost Records and Audit) Rules, 2014.
When is the last date for submitting the e-Form CRA-4?
The document in question should be submitted within thirty days starting from the time when the company ‘cost auditor’ hands over the ‘cost audit report’ to the company.
What are the consequences of filing e-Form CRA-4 late?
If the form is filed after the deadline, the company will be required to pay additional fees based on the duration of the delay. Fees increase progressively with the delay period.
What documents need to be attached to e-Form CRA-4?
The cost audit report must be attached in PDF format. Optional documents, such as explanatory notes or additional annexures, can also be included as needed.
Is there an option to correct e-Form CRA-4?
Yes, e-form CRA-4 can be edited after submission through the modify option, as long as it hasn't been made the final copy of e-form CRA-4 or has been sent for verification.
Is e-Form CRA-4 mandatory to be filed with a digital signature?
Yes, e-Form CRA-4 requires the Mandatory Digital Signature Certificate from an authorized signer of the company such as Director, CEO or CFO.
Read our blog: Forms Under Companies Act, 2013
