Section 9 in The Cost Accounting Records (Electronic Products) Rules, 2001
9. Research and Development Expenses:
(1)The proper records showing the details of expenses, if any, incurred by the company for the research and development work on the product covered under these rules according to the nature of development of products, existing and new product, development of process of manufacture, existing and new, design and development of new plant facilities and market research for the existing and new products, shall be maintained separately.(2)The method of charging these expenses to the Electronic products and components thereof and all other products shall be indicated in the cost records. Where the utility of such research and development work extends over more than one financial year, such expenses shall be treated as deferred expenses and charged to the cost of production of Electronic products and components thereof and all other products if any, on equitable and reasonable basis and applied consistently.(3)The expenses incurred by the Research and Development Department for providing technical know-how to outsiders shall be recorded separately and excluded from the cost of Electronic products and components thereof. The amount recovered for providing technical know-how to outsiders shall also be indicated separately and excluded from the income arising from the sale of electronic products.
