ER-6 Related issuw

[Guest]

Dear Sir,

In the ER-6 Return we mentioned the major inputs if we change the inputs in between the period den is there any issue in the department ?

[Rajagopalan Ranganathan]

Sir,

There will be no issue if you change the principal raw material in the middle of year. You have to show two entries as serial No. 1 & 2. Against Sl. No.1 you show the particulars of current raw material. Against Sl. No. 2 you show the particulars of the new raw material. You also inidicate the period during which the raw materials were used in the manufacture of final products.

[Mahir S]

Every assessee who is required to submit return under ER-5 is also required to submit monthly return of receipt and consumption of each of principal inputs by 10^th of the following month in Form ER-6.

Therefore, you have to show the principal inputs used in the previous month in the form ER-6.

Such principal inputs shown in the form ER-6 may be either same or different each month.

However, Excise Audit may raise query at the time of audit of the unit, hence advisable to intimate the department in advance and separately, if there is any major change in the usage of major raw materials, with reasons thereof,

[YAGAY andSUN]

There is no harm in changing the Principal Inputs in the mid year but there should be justification for the same as it depends on the types of finished goods are being manufactured by your concern. Even you would have to mention such clarification in your financial also at the end of the year.

AI Summary

Change of principal inputs permitted; report both inputs with periods in ER-6 and provide justification for major changes. Changing the principal inputs mid period is permissible if reflected in the ER 6 monthly return: list separate entries for each principal input, indicate the period each was used, and ensure monthly ER 6 shows the previous month's inputs. Major changes should be justified and documented because excise audit may query them; advance intimation to the revenue administration and explanation in financial records is advisable.