[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
NEW DELHI
NOTIFICATION NO
82/2023, Dated: September 27, 2023
G.S.R. 697(E).- In exercise of the powers conferred by sub-section (2A) of section 142 read with section 295 of the Income-tax Act, 1961 (hereinafter referred to as the Act), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. Short title and commencement.- (1) These rules may be called the Income-tax (Twenty Second Amendment) Rules, 2023.
(2) They shall come into force from the date of publication in the Official Gazette.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), for rule 14A, the following rule shall be substituted namely:-
"14A. Forms for report of audit or inventory valuation under section 142(2A).- (1) The report of audit of the accounts of an assessee which is required to be furnished under clause (i) of sub-section (2A) of section 142 shall be in Form No. 6B.
(2) The report of inventory valuation of an assessee which is required to be furnished under clause (ii) of sub-section (2A) of section 142 shall be in Form No. 6D.".
3. In the principal rules, for rule 14B, the following rule shall be substituted namely:-
"14B. Guidelines for the purposes of determining expenses for audit or inventory valuation. -
(1) Every Chief Commissioner shall for the purposes of clause (i) and clause (ii) of sub-section (2A) of section 142 shall maintain a panel of -
(i) accountants, out of the persons referred to in the Explanation to sub-section (2) of section 288; and
(ii) cost accountants, out of the persons referred to in the Explanation to section 142.
(2) Where the Assessing Officer directs -
(i) for audit under clause (i) of sub-section (2A) of section 142 on or after the 1st day of June, 2007; or
(ii) for inventory valuation under clause (ii) of sub-section (2A) of section 142 on or after the 1st day of April, 2023, the expenses of, and incidental to, audit or inventory valuation (including the remuneration of the Accountant or Cost Accountant, qualified Assistants, semi-qualified and other Assistants who may be engaged by such Accountant or Cost Accountant) shall not be less than three thousand seven hundred and fifty rupees and not more than seven thousand and five hundred rupees for every hour of the period as specified by the Assessing Officer under sub- section (2C) of section 142.
(3) The period referred to in sub-rule (2) shall be specified in terms of the number of hours required for completing the report.
(4) The Accountant or Cost Accountant referred to in clause (i) or clause (ii) of sub-section (2A) of section 142 shall maintain a time-sheet and shall submit it to the Chief Commissioner or Commissioner, along with the bill.
(5) The Chief Commissioner or the Commissioner shall ensure that the number of hours claimed for billing purposes is commensurate with the size and quality of the report submitted by the Accountant or Cost Accountant.".
4. In the principal rules, in Appendix II,-
(a) in Form No. 6B:-
(i) for the heading of the Form, the following shall be substituted, namely:- "Audit report under clause (i) of section 142(2A) of the Income-tax Act, 1961";
(ii) in the Notes, for serial number 2 and entries relating thereto, the following serial number and entries shall be substituted, namely - "2. This report has to be given by the accountant nominated by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner of Income-tax under clause (i) of section 142(2A) of the Income-tax Act, 1961.";
(b) after Form No. 6C, the following Form shall be inserted, namely:-
"FORM NO. 6D
[See rule 14A]
Inventory Valuation report under clause (ii) of section 142(2A) of the Income-tax Act, 1961
1. * I/We have examined the books of account and other documents with respect to inventory and inventory valuation of_________ [name and address of the assessee] Permanent Account No.___________ for the assessment year______ as at_____________.
2. * I/We have conducted Inventory Valuation in compliance with the requirements under the relevant provisions of Income-tax Act 1961 and Income-tax Rules 1962. As per the Inventory Valuation carried out by *me/ us, the opening inventory has been valued at Rs. ____________(in words____________) and the closing inventory has been valued at Rs.____________ (in words____________) for the relevant period____________to____________.
3. * I/ We have obtained all the information and explanations which to the best of * my/our knowledge and belief were necessary for the purposes of the Inventory Valuation.
4. In * my/our opinion, from *my/ our examination of the books of account and other documents, it appears that proper books of account and other documents with respect to inventory have been kept by the head office, other premises and the branches of the assessee visited by * me/us, and proper data adequate for the purposes of inventory valuation have been received from branches not visited by * me/us subject to the comments given below:
(a)
(b)
……………………..
5. In * my/our opinion and to the best of * my/our information and according to explanations given to * me/us, the Inventory Valuation presented herein below in * my/our report is true and correct subject to comments given below:
(a)
(b)
………………………………..
6. The prescribed particulars and such other particulars as were required by the Assessing Officer by order No.____________dated____________are annexed hereto. In * my/our opinion and to the best of *my/our information and according to explanations given to * me/us, these are true and correct.
7. Any variations observed in the Inventory Valuation Report compared to the disclosures made in Form No. 3CD (or if no Form No. 3CD has been furnished, then value as per audited accounts) have been adequately explained along with the reasons and justifications thereof.
Place ............
Date .............
Signed
**Name of Cost Accountant………
Address ……….
Membership Number ………
UDIN .…..…..
Notes:
1. *Delete whichever is not applicable.
2. **This report has to be given by the Cost Accountant nominated by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner of Income-tax under clause (ii) of section 142(2A) of the Income-tax Act, 1961.
3. Where any of the matters stated in this report is answered in the negative or with a qualification, the report shall state the reasons therefor.
4. The opening values have been taken from the books of account and other documents as produced by the assessee.
5. Relevant period shall be the period specified by the Assessing Officer.
ANNEXURE
Inventory Valuation Report of Cost Accountant
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Information of the Assessee
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1
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Address (Head Office / other premises and branches)
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a.
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b.
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c.
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….
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2.
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Date of incorporation/ Date of formation / Date of birth
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3.
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Nature of business activity
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4.
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Details of principal products / services
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5.
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Details of books of account and other documents maintained with respect to inventory
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6.
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(i) Method of accounting employed with respect to inventory maintained. Indicate whether there is any change from the method of accounting employed with respect to inventory maintained in the immediately two preceding previous years
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(ii) Is there any inventory management system software in place? If so, details of the same.
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7.
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(i) Method of valuation of opening and closing stock of following inventory items used by the Assessee:
a) Finished Goods (manufactured)
b) Stock-in-trade
c) Work-in-progress (WIP)
d) Raw materials
e) By-products
f) Intermediate Products
g) Jigs, Tools, and Dies
h) Stores, Spares and Consumables
i) Scrap
j) Any other item
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(ii) State whether there is any change in the method of valuation of any of the aforesaid items as compared to the method employed in the immediately two preceding previous years
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(iii) If the answer to (ii) above is in the affirmative, specify the amount by which the profit or loss for the relevant period has been affected by such change
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(iv) During the relevant period, has there been any insurance claim relating to inventory due to fire or accident or any other reason. If so, give details.
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Note: In case available, details of HSN codes and SAC code for services should be provided for principal products/ services.
8. Give summarized details of Financial Results (as per the Audited Accounts of the Assessee)
Details of Financial Results (as per the Audited Accounts of the Assessee)
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S. No.
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Particulars
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Year under reporting
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Previous Year 1
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Previous Year 2
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1
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Turnover
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2
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Profit (Loss) before tax
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3
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Less: Taxes paid
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4
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Profit (Loss) after tax
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5
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Raw Materials Consumed
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6
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Opening Inventory
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7
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Closing Inventory
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8
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Average Inventory Holding Period (days) ={365/(Turnover [1]/Average Inventory)} Average Inventory = {[6]+[7]}/2
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9
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Average Raw Material Stock to Consumption (days)
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10
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Average. Stores and Spares Stock to Consumption (days)
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9. In respect of items manufactured, full quantitative details of raw materials and finished products as indicated below (consolidated at entity level):
(i) Details of Raw Material (RM) for the relevant period under reporting -
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S. No.
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Details
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Raw Material description
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Unit of Measurement (UOM)
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Opening stock
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Purchases during the relevant period
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Consumption of Raw Material during the relevant period
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Raw Material sold during the relevant period
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Closing stock
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Other adjustments
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1.
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RM1
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2.
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RM2
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3.
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RM3
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……
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Others
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Notes:
1. Inventory of all such raw materials that constitute top 80% of the total inventory value of raw materials should be reported item-wise separately. Inventory of all other raw materials constituting balance may be clubbed under "Others".
2. Add number of rows depending on the number of raw materials
3. Other adjustments include Shortage/ Wastages / Rejects, etc.
(ii)(a) Quantitative details in respect of items manufactured / traded by the Assessee for the relevant period under reporting -
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S. No.
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Finished products/ Work-in- Progress
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Description
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Item Code
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Unit of Measure ment (UOM)
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Opening stock
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Quantity (Qty) manufactured during the relevant period
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Quantity purchased during the relevant period
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Quantity sold during the relevant period
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Quantity rejected during the relevant period
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Quantitative adjustments, if any * (add reasons)
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Closing stock at the end of the relevant period
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Opening Work-in- Progress
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Closing Work-in- Progress
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1.
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Item 1
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2.
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Item 2
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3.
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Item 3
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.........
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Others
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*(ii)(b) Quantitative adjustments -
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S. No.
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Finished products / Work-in-Progress
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If there are quantitative adjustments in (ii)(a), furnish the detailed reasons for quantitative adjustments
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1.
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Item 1
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2.
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Item 2
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3.
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Item 3
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.........
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Others
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Notes:
1. Add number of rows depending on the number of items
2. Separate quantitative details on the above lines should be given in respect of by-products, if any.
3. Where the assessee is trading in goods, quantitative details on the above lines should be given in respect of the goods traded in.
4. Inventory of all such manufactured goods / traded goods / work-in-progress items that constitute top 80% of the value of total manufactured goods / traded goods / work-in-progress items respectively should be reported item-wise separately. Inventory of all other manufactured goods / traded goods / work-in-progress items constituting balance may be clubbed under "Others"
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10.
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(i) Has the assessee conducted physical verification of raw materials, stores and finished products, etc. or traded goods mentioned above?
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(ii) Details of discrepancies, if any
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11.
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(i) Whether valuation is in conformity with the Income Computation and Disclosure Standards (ICDS) notified under sub-section (2) of section 145 of the Income-tax Act, 1961?
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(ii) Details of discrepancies, if any
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12. Details of inventory valuation for the relevant period under reporting by the Cost Accountant (wherever ICDS II is applicable) -
(i)(a) Valuation of Finished Goods
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Sl.
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Description
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Item Code
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UOM
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Opening Stock
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Closing Stock
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Qty
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COP/ PV (Rs.)
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NRV (Rs.)
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Lower of (6) or (7)
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Value (5) x (8) (Rs.)
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Qty
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COP/ PV (Rs.)
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NRV (Rs.)
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Lower of (11) or (12)
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Value (10) x (13) (Rs.)
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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(7)
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(8)
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(9)
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(10)
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(11)
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(12)
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(13)
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(14)
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1
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Product 1
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2
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Product 2
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3
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Product 3
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.........
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Total
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COP: Cost of Production PV: Purchase Value
NRV: Net Realisable Value
Notes: Add or delete rows as per the number of finished products
(i)(b) Valuation of Stock-in-trade
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Sl.
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Description
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Item Code
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UOM
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Opening Stock
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Closing Stock
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Qty
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COP/ PV (Rs.)
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NRV (Rs.)
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Lower of (6) or (7) (Rs.)
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Value (5) x (8) (Rs.)
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Qty
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COP/ PV (Rs.)
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NRV (Rs.)
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Lower of (11) or (12) (Rs.)
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Value (10) x (13) (Rs.)
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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(7)
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(8)
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(9)
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(10)
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(11)
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(12)
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(13)
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(14)
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1
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Product 1
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2
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Product 2
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3
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Product 3
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.........
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Total
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COP: Cost of Production PV: Purchase Value
NRV: Net Realisable Value
Notes: Add or delete rows as per the number of products
(ii) Valuation of Work-in-Progress (WIP)
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Sl.
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Description
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Item Code
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UOM
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Opening Stock
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Closing Stock
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Qty
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COP (Rs.)
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NRV (Rs.)
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Lower of (6) or (7) (Rs.)
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Value (5) x (8) (Rs.)
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Qty
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COP (Rs.)
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NRV (Rs.)
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Lower of (11) or (12) (Rs.)
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Value (10) x (13) (Rs.)
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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(7)
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(8)
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(9)
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(10)
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(11)
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(12)
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(13)
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(14)
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1
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WIP 1
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2
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WIP 2
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3
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WIP 3
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.........
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Total
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COP: Cost of Production Notes:
1. Add or delete rows as per the number
2. NRV here means NRV of relevant finished product less estimated completion cost.
(iii) Valuation of Raw Materials
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Sl.
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Description
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Item Code
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UOM
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Opening Stock
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Closing Stock
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Qty
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Purchase cost (Rs.)
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Repla- cement rate (Rs.)
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Lower of (6) or (7) (Rs.)
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Value (5) x (8) (Rs.)
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Qty
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Purchase cost (Rs.)
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Repla- cement rate (Rs.)
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Lower of (11) or (12) (Rs.)
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Value (10) x (13) (Rs.)
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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(7)
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(8)
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(9)
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(10)
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(11)
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(12)
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(13)
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(14)
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1
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RM 1
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2
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RM 2
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3
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RM 3
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…..
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Total
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Note: Add or delete rows as per the number of Raw Material items
(iv) Valuation of By-Products
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Sl.
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Description
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Item Code
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UOM
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Opening Stock
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Closing Stock
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Quantity
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NRV (Rs.)
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Value (5)x(6) (Rs.)
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Quantity
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NRV (Rs.)
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Value (8)x(9) (Rs.)
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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(7)
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(8)
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(9)
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(10)
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1
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By-Product 1
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2
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By-Product 2
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3
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By-Product 3
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……….
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Total
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NRV: Net Realisable Value
Note: Add/Delete Rows as per the number of By-Products.
(v) Valuation of Intermediate Products (IMP)
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Sr.
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Description
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Item Code
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UOM
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Opening Stock
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Closing Stock
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Qty
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COP (Rs.)
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NRV (Rs.)
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Lower of (6) or (7) (Rs.)
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Value (5) x (8) (Rs.)
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Qty
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COP (Rs.)
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NRV (Rs.)
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Lower of (11) or (12) (Rs.)
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Value (10) x (13) (Rs.)
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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(7)
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(8)
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(9)
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(10)
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(11)
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(12)
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(13)
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(14)
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1
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IMP 1
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2
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IMP 2
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3
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IMP 3
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…….
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Total
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Note:
1. Add/Delete Rows as per the number of Intermediate Products
2. Intermediate products include only such products which are at intermediate stage and not included elsewhere.
(vi) Valuation of Others
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Description
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Opening Value (Rs.)
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Closing Value (Rs.)
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Jigs, Tools, and Dies
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Stores, Spares and Consumables
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Scrap
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Others
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Total
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(vii) Summary of Inventory Valuation as on________
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Sl.
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Particulars
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Value as per Form No. 3CD (Rs.) (If Form No. 3CD not furnished, then value as per audited accounts)
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Value as per Cost Accountant (Rs.)
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Variation if any (Rs.)
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Opening
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Closing
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Opening
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Closing
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Opening
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Closing
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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(7)
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(8)
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(5) - (3)
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(6) – (4)
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1
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Finished Goods
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2
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Stock- in-Trade
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3
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Work-in-Progress
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4
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Raw Material
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5
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By-Products
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6
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Intermediate products
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7
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Jigs, Tools, and Dies
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8
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Stores, Spares and Consumables
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9
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Scrap
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|
10
|
Others
|
|
|
|
|
|
|
|
11
|
Total
|
|
|
|
|
|
|
|
12
|
Impact on Profit or Loss
|
|
|
|
13
|
Impact on Income Tax
|
|
|
(viii) Details of inventory valuation carried out by the Cost Accountant
|
|
Inventory Items
|
Method of valuation used by the Cost Accountant
|
In case of variation in the method adopted by the assessee, state reasons for variations in quantity, rates and value along with method adopted by the Cost Accountant for various items of inventory giving full justification.
|
|
|
|
Opening stock
|
Closing stock
|
|
|
a.
|
Finished Goods (manufactured)
|
|
|
|
|
b.
|
Stock-in-trade
|
|
|
|
|
c.
|
Work-in-progress (WIP)
|
|
|
|
|
d.
|
Raw materials
|
|
|
|
|
e.
|
By-products
|
|
|
|
|
f.
|
Intermediate Products
|
|
|
|
|
g.
|
Jigs, Tools, and Dies
|
|
|
|
|
h.
|
Stores, Spares and Consumables
|
|
|
|
|
i.
|
Scrap
|
|
|
|
|
j.
|
Any other item
|
|
|
|
(ix) Any other relevant comment, observation or qualification of the Cost Accountant
Notes:
1. The item level details shall be maintained by the Assessee and the Cost Accountant and produced if required by the Assessing Officer.
2. Income Computation and Disclosure Standard II shall be applied for valuation of inventories, except:
(a) Work-in-progress arising under ‘construction contract' including directly related service contract which is dealt with by the Income Computation and Disclosure Standard on construction contracts;
(b) Work-in-progress which is dealt with by other Income Computation and Disclosure Standard;
(c) Shares, debentures and other financial instruments held as stock-in-trade which are dealt with by the Income Computation and Disclosure Standard on securities;
(d) Producers' inventories of livestock, agriculture and forest products, mineral oils, ores and gases to the extent that they are measured at net realisable value;
13. Details of inventory valuation for the relevant period under reporting by the Cost Accountant (wherever ICDS II is not applicable) -
A. Inventory valuation for Assessees engaged in the Construction Contracts which are dealt with by the ICDS III
(i) Valuation of Completed Units Ready for Sale
|
Sl.
|
Description
|
Type of Completed units
|
Subtype if any
|
Closing Stock
|
Opening Stock
|
|
|
|
Qty
|
Cost of the unit for each type (Rs.)
|
NRV (Rs.)
|
Value [(5) X lesser of ((6) or (7))](Rs.)
|
Qty
|
Cost of the unit for each type (Rs.)
|
NRV (Rs.)
|
Value [(9) X lesser of ((10) or (11))] (Rs.)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
(10)
|
(11)
|
(12)
|
|
1
|
Project 1
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Project 2
|
|
|
|
|
|
|
|
|
|
|
|
3
|
Project 3
|
|
|
|
|
|
|
|
|
|
|
|
|
…..
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
Notes:
1. Type means BHK size/Affordable/ Premium/Commercial etc. which is identifiable as different sale unit
2. Completed Units mean Plots/Flats/commercial units/Villas/Floors which are ready for sale and have been included in inventory as such
3. The valuation of Land (Shown separately in Inventory Valuation in financials) and Development Rights can be shown here, if required.
(ii) Valuation of Construction Work-in-progress
|
Sl.
|
Description
|
Closing Stock
|
Opening Stock
|
|
%age Completion
|
Total to-date construction cost(Rs.)
|
Cost as per recognised revenue (Rs.)
|
Value of Work- in- progress [(4)-(5)] (Rs.)
|
%age Completion
|
Total to-date construction cost (Rs.)
|
Cost as per recognised revenue (Rs.)
|
Value of Work-in- progress [(8)-(9)] (Rs.)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
(10)
|
|
1
|
Project 1
|
|
|
|
|
|
|
|
|
|
2
|
Project 2
|
|
|
|
|
|
|
|
|
|
3
|
Project 3
|
|
|
|
|
|
|
|
|
|
|
………
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
Note: Add number of rows depending on the number of Projects
(iii) Valuation of construction materials
|
Sl.
|
Description
|
Item Code
|
UOM
|
Opening Stock
|
Closing Stock
|
|
Qty
|
Purchase cost (Rs.)
|
Repla- cement rate (Rs.)
|
Lower of (6) or (7) (Rs.)
|
Value (5) x (8) (Rs.)
|
Qty
|
Purchase cost (Rs.)
|
Repla- cement rate (Rs.)
|
Lower of (11) or (12) (Rs.)
|
Value (10) x (13) (Rs.)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
(10)
|
(11)
|
(12)
|
(13)
|
(14)
|
|
1
|
Material 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Material 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
Material 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
……….
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Add number of rows depending on the number of Construction Materials
(iv) Valuation of construction fittings, supporting equipment and others
|
Sl.
|
Description
|
Item Code
|
UOM
|
Opening Stock
|
Closing Stock
|
|
Qty
|
Purchase cost (Rs.)
|
Repla- cement rate (Rs.)
|
Lower of (6) or (7) (Rs.)
|
Value (5) x (8) (Rs.)
|
Qty
|
Purchase cost (Rs.)
|
Repla- cement rate (Rs.)
|
Lower of (11) or (12) (Rs.)
|
Value (10) x (13) (Rs.)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
(10)
|
(11)
|
(12)
|
(13)
|
(14)
|
|
1
|
Item 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Item 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
Item 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
………
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Add number of rows depending on the number of Items
(v) Summary of Inventory Valuation for Construction Contracts as on______
|
Sl.
|
Particulars
|
Value as per Form No. 3CD (If Form No. 3CD not furnished, then value as per audited accounts) (Rs.)
|
Value as per Cost Accountant (Rs.)
|
Variation if any (Rs.)
|
|
|
|
Opening
|
Closing
|
Opening
|
Closing
|
Opening
|
Closing
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
|
|
|
|
|
|
|
(5)-(3)
|
(6)-(4)
|
|
1
|
Completed units ready for sale
|
|
|
|
|
|
|
|
2
|
Construction Work-in-progress
|
|
|
|
|
|
|
|
3
|
Construction Materials
|
|
|
|
|
|
|
|
4
|
Construction Fittings, supporting equipment and Others
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
| |
Impact on Profit or Loss |
|
|
| |
Impact on Income Tax |
|
|
Note: Specify the amount by which profit or loss would be affected by the changed valuation.
(vi) Details of inventory valuation carried out by the Cost Accountant
|
|
Inventory Items
|
Method of valuation used by the Cost Accountant
|
In case of variation in the method adopted by the assessee, state reasons for variations in quantity, rates and value along with method adopted by the Cost Accountant for various items of inventory giving full justification.
|
|
|
|
Opening stock
|
Closing stock
|
|
|
a.
|
Completed units ready for sale
|
|
|
|
|
b.
|
Construction Work-in-progress
|
|
|
|
|
c.
|
Construction Materials
|
|
|
|
|
d.
|
Construction Fittings, supporting equipment and Others
|
|
|
|
Note: Specify the method used to determine the stage of completion of contracts in progress
(vii) Any other relevant comment, observation or qualification of the Cost Accountant
B. Inventory valuation for Assessees engaged in the trading of Securities which are dealt with by the ICDS VIII. (i)(a) Valuation of Listed Shares held as Stock-in-trade
|
Sr.
|
Description
|
Opening Stock
|
Closing Stock
|
|
Qty
|
AC (Rs.)
|
NRV (Rs.)
|
Lower of (4) or (5) (Rs.)
|
Value (3)X (6) (Rs.)
|
Qty
|
AC (Rs.)
|
NRV (Rs.)
|
Lower of (9) or (10) (Rs.)
|
Value (8)X (11) (Rs.)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
(10)
|
(11)
|
(12)
|
|
1
|
Share 1
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Share 2
|
|
|
|
|
|
|
|
|
|
|
|
3
|
Share 3
|
|
|
|
|
|
|
|
|
|
|
|
|
……..
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
AC: Actual Cost
NRV: Net Realisable Value
Note: Add number of rows depending on the number of shares
(i)(b) Valuation of Unlisted Shares held as Stock-in-trade
|
Sl.
|
Description
|
Opening Stock
|
Closing Stock
|
|
Qty
|
AC (Rs.)
|
NRV (Rs.)
|
Lower of (4) or (5) (Rs.)
|
Value (3)X (6) (Rs.)
|
Qty
|
AC (Rs.)
|
NRV (Rs.)
|
Lower of (9) or (10) (Rs.)
|
Value (8)X (11) (Rs.)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
(10)
|
(11)
|
(12)
|
|
1
|
Share 1
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Share 2
|
|
|
|
|
|
|
|
|
|
|
|
3
|
Share 3
|
|
|
|
|
|
|
|
|
|
|
|
|
……….
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
AC: Actual Cost
NRV: Net Realisable Value
Note: Add number of rows depending on the number of shares
(ii) Valuation of Debt Securities held as Stock-in-trade
|
Sl.
|
Description
|
Opening Stock
|
Closing Stock
|
|
Qty
|
AC (Rs.)
|
NRV (Rs.)
|
Lower of (4) or (5) (Rs.)
|
Value (3)X (6) (Rs.)
|
Qty
|
AC (Rs.)
|
NRV (Rs.)
|
Lower of (9) or (10) (Rs.)
|
Value (8)X (11) (Rs.)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
(10)
|
(11)
|
(12)
|
|
1
|
Debt Security 1
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Debt Security 2
|
|
|
|
|
|
|
|
|
|
|
|
3
|
Debt Security 3
|
|
|
|
|
|
|
|
|
|
|
|
|
…………..
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
AC: Actual Cost
NRV: Net Realisable Value
Note: Add number of rows depending on the number of Debt securities
(iii) Valuation of Convertible Securities held as Stock-in-trade
|
Sl.
|
Description
|
Opening Stock
|
Closing Stock
|
|
Qty
|
AC (Rs.)
|
NRV (Rs.)
|
Lower of (4) or (5) (Rs.)
|
Value (3)X (6) (Rs.)
|
Qty
|
AC (Rs.)
|
NRV (Rs.)
|
Lower of (9) or (10) (Rs.)
|
Value (8)X (11) (Rs.)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
(10)
|
(11)
|
(12)
|
|
1
|
Convertible Security 1
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Convertible Security 2
|
|
|
|
|
|
|
|
|
|
|
|
3
|
Convertible Security 3
|
|
|
|
|
|
|
|
|
|
|
|
|
……………
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
AC: Actual Cost
NRV: Net Realisable Value
Note: Add number of rows depending on the number of Convertible Securities
(iv) Valuation of Any other security held as Stock-in-trade
|
Sl.
|
Description
|
Opening Stock
|
Closing Stock
|
|
Qty
|
AC (Rs.)
|
NRV (Rs.)
|
Lower of (4) or (5) (Rs.)
|
Value (3)X (6) (Rs.)
|
Qty
|
AC (Rs.)
|
NRV (Rs.)
|
Lower of (9) or (10) (Rs.)
|
Value (8)X (11) (Rs.)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
(10)
|
(11)
|
(12)
|
|
1
|
Any other Security 1
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Any other Security 2
|
|
|
|
|
|
|
|
|
|
|
|
3
|
Any other Security 3
|
|
|
|
|
|
|
|
|
|
|
|
|
…………….
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
Ac : Actual Cost
NRV: Net Realisable Value
Note: Add number of rows depending on the number of Any other Securities
(v) Summary of Inventory Valuation for Shares, Debentures and other Financial Instruments held as stock- in-trade as on_________
|
Sl.
|
Category
|
Value as per Form No. 3CD (If Form No. 3CD not furnished, then value as per audited accounts) (Rs.)
|
Value as per Cost Accountant (Rs.)
|
Variation if any (Rs.)
|
|
|
|
Opening
|
Closing
|
Opening
|
Closing
|
Opening
|
Closing
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
|
|
|
|
|
|
|
(5) – (3)
|
(6) – (4)
|
|
1
|
Listed Shares
|
|
|
|
|
|
|
|
2
|
Unlisted Shares
|
|
|
|
|
|
|
|
3
|
Debt Securities
|
|
|
|
|
|
|
|
4
|
Convertible Securities
|
|
|
|
|
|
|
|
5
|
Any other Security
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
Impact on Profit or Loss
|
|
|
|
|
Impact on Income Tax
|
|
|
Note: Specify the amount by which profit or loss would be affected by the changed valuation.
(vi) Details of inventory valuation carried out by the Cost Accountant
|
|
Inventory Items
|
Method of valuation used by the Cost Accountant
|
In case of variation in the method adopted by the assessee, state reasons for variations in quantity, rates and value along with method adopted by the Cost Accountant for various items of inventory giving full justification.
|
|
|
|
Opening stock
|
Closing stock
|
|
|
a.
|
Listed Shares
|
|
|
|
|
b.
|
Unlisted Shares
|
|
|
|
|
c.
|
Debt Securities
|
|
|
|
|
d.
|
Convertible Securities
|
|
|
|
|
e.
|
Any other Security
|
|
|
|
Note: Specify the method used to determine the Actual Cost and Net Realisable Value for each category of financial instruments.
(vii) Any other relevant comment, observation or qualification of the Cost Accountant
Note: Securities not listed on a recognised stock exchange; or listed but not quoted on a recognised stock exchange with regularity from time to time shall be valued at actual cost initially recognised.
C. Inventory valuation of livestock, agriculture and forest products, mineral oils, ores and gases, except those held by the trader of such inventories
(i) Valuation of Inventory of Livestock
|
Sl.
|
Description
|
UOM
|
Closing Stock
|
Opening Stock
|
|
Quantity
|
NRV (Rs.)
|
Value (Rs.) (4)X(5)
|
Quantity
|
NRV (Rs.)
|
Value (Rs.) (7)X(8)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
|
1
|
Livestock 1
|
|
|
|
|
|
|
|
|
2
|
Livestock 2
|
|
|
|
|
|
|
|
|
3
|
Livestock 3
|
|
|
|
|
|
|
|
|
|
…………
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
NRV: Net Realisable Value
Note: Add number of rows depending on the number of Livestock
(ii) Valuation of Inventory of Agriculture and Forest Produce
|
Sl.
|
Description
|
UOM
|
Closing Stock
|
Opening Stock |
|
|
|
|
Quantity
|
NRV (Rs.)
|
Value (Rs.) (4)X(5)
|
Quantity
|
NRV (Rs.)
|
Value (Rs.) (7)X(8)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
(9)
|
|
1
|
Produce 1
|
|
|
|
|
|
|
|
|
2
|
Produce 2
|
|
|
|
|
|
|
|
|
3
|
Produce 3
|
|
|
|
|
|
|
|
|
|
…………
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
NRV: Net Realisable Value
Note: Add number of rows depending on the number of produce
(iii) Valuation of Inventory of Mineral Oils, Ores and Gases
|
Sl.
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Description
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UOM
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Closing Stock
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Opening Stock
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Quantity
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NRV (Rs.)
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Value (Rs.) (4)X(5)
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Quantity
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NRV (Rs.)
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Value (Rs.) (7)X(8)
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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(7)
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(8)
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(9)
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1
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Product 1
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2
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Product 2
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3
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Product 3
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…………
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Total
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NRV: Net Realisable Value
Note: Add number of rows depending on the number of Products
iv. Summary of Comparison as on
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Sl.
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Category
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Value as per Form No. 3CD (If Form No. 3CD not furnished, then value as per audited accounts) (Rs.)
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Value as per Cost Accountant (Rs.)
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Variation if any (Rs.)
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Opening
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Closing
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Opening
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Closing
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Opening
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Closing
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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(7)
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(8)
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(5) – (3)
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(6) – (4)
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1
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Livestock
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2
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Agriculture and Forest Produce
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3
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Mineral oils, Ores and Gases
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Total
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Impact on Profit or Loss
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Impact on Income Tax
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Note: Specify the amount by which profit or loss would be affected by the changed valuation.
(v) Details of inventory valuation carried out by the Cost Accountant
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Inventory Items
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Method of valuation used by the Cost Accountant
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In case of variation in the method adopted by the assessee, state reasons for variations in quantity, rates and value along with method adopted by the Cost Accountant for various items of inventory giving full justification.
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Opening stock
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Closing stock
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a.
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Livestock
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b.
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Agriculture and Forest Produce
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c.
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Mineral oils, Ores and Gases
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(vi) Any other relevant comment, observation or qualification of the Cost Accountant
Place ……………...
Date ……………...
Signed
Name of Cost Accountant ….…………...
Address ……………...
Membership Number ……………...
UDIN ............".
[F.No. 370142/29/2023-TPL]
(Jivitesh Anand)
Under Secy. (Tax Policy and Legislation Division)
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O. 969 (E), dated the 26th March, 1962 and was last amended vide notification number G.S.R. 685(E) dated 25th September, 2023. |
