Section 13(y) in The Companies (Cost records and audit) Rules, 2014
(y)Where the pollution control cost is not directly traceable to cost object, it shall be treated as overhead and assigned based on either of the following two principles; namely:-(i)Cause and Effect - Cause is the process or operation or activity and effect is the incurrence of cost; and(ii)Benefits received - overheads are to be apportioned to the various cost objects in proportion to the benefits received by them.
