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TMI BlogForms for report of audit or inventory valuation u/s 142(2A) and Guidelines for the purposes of determining expenses for audit or inventory valuation - Amendment in Income-tax Rules 1962X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e/ 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 part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the method of accounting employed with respect to inventory maintained in the immediately two preceding previous years (ii) Is there any inventory management system software in place? If so, details of the same. 7. (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 (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 (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 (iv) During the relevant period, has there been any insurance clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Purchases during the relevant period 1. RM1 2. RM2 3. RM3 Others Consumption of Raw Material during the relevant period Raw Material sold during the relevant period Closing stock Other adjustments 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 Sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... *(ii)(b) Quantitative adjustments - S. No. Finished products / Work-in-Progress If there are quantitative adjustments in (ii)(a), furnish the detailed reasons for quantitative adjustments 1. Item 1 2. Item 2 3. Item 3 ......... Others 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 / ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 Product 3 ......... Total 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 Sl. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) Sl. Description Item Code UOM Opening Stock Closing Stock Qty COP (Rs.) NRV (Rs.) Lower of (6) or (7) (Rs.) Value (5) x (8) (Rs.) Qty COP (Rs.) NRV (Rs.) Lower of (11) or (12) (Rs.) Value (10) x (13) (Rs.) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 RM 2 3 RM 3 .. Total Closing Stock Qty Purchase cost (Rs.) Replacement rate (Rs.) Lower of (11) or (12) (Rs.) Value (10) x (13) (Rs.) (10) (11) (12) (13) (14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (IMP) Sr. Description Item Code UOM Opening Stock Closing Stock Qty COP (Rs.) NRV (Rs.) Lower of (6) or (7) (Rs.) Value (5) x (8) (Rs.) Qty COP (Rs.) NRV (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 IMP 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning Closing Opening Closing (1) (2) (3) (4) (5) (6) (7) (8) (5) - (3) (6) (4) 1 Finished Goods 2 Stock- in-Trade 3 Work-in-Progress 4 Raw Material 5 By-Products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 %age Completion Total to-date construction cost(Rs.) Cost as per recognised revenue (Rs.) Value of Workin- progress [(4)-(5)] (Rs.) (1) (2) (3) (4) (5) (6) 1 Project 1 2 Project 2 3 Project 3 Total Opening Stock %age Completion Total to-dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Value (10) x (13) (Rs.) (10) (11) (12) (13) (14) 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 Qty Purchase cost (Rs.) Replacement rate (Rs.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alue 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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.) Qt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 stockin-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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) (3) (4) (5) (6) (7) (8) (9) 1 Product 1 2 Product 2 3 Product 3 Total NRV: Net Realisable Value Note: Add number of rows depending on the number of Products (iv) Summary of Comparison 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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