ER-4 RETURN

[Guest]

Dear All,

Can you tell me in what quantity & value will come of Finished Goods in ER-4. Is as per ER-1 or Balance sheet notes on account? & what value for example assessable value or actual inventory value?

[Rajagopalan Ranganathan]

Sir,

As per column 3 (1) (a) of E.R. 4 format total value of inputs including packing materials and components used for manufacturing on which CENVAT credit availed (value as per purchase invoice or import document excluding all taxes).

As per Column 3 (ii) of the same format value and quantity of each major raw material consumed in the manufacture of goods is to be given separately and distinctly for each major raw material consumed on the lines of Sl. No. 3 (ii) (a) (1) of Part II of the Schedule VI pertaining to section 211 of the Companies Act, 1956 (1 of 1956), i.e. each such raw material which in value independently accounts for 10% or more of the total value of the raw materials consumed. Here also the value is excluding the all taxes payable since credit of the same is availed by you.

As per column 4 (i) total Sales value (Gross) is to be provided as per Profit & Loss account

(ii) Value and quantity of each major manufactured finished goods sold, as clarified in Note 3 to the para 3 of Part II of the Schedule VI pertaining to section 211 of the Companies Act, 1956 (1 of 1956) is to be given.

All the values are excluding the taxes payable/paid. This is my opinion.

AI Summary

Clarification on Reporting Finished Goods in ER-4: Align with Purchase Invoices, Exclude Taxes, Detail Major Raw Materials. A user inquired about the appropriate quantity and value of finished goods to report in the ER-4 return, questioning whether it should align with ER-1 or balance sheet notes. The response clarified that, according to the ER-4 format, the total value of inputs, including packing materials and components with CENVAT credit, should be based on purchase invoices or import documents, excluding taxes. The value and quantity of major raw materials must be reported separately if they account for 10% or more of total raw material value. Sales value should be gross as per the Profit & Loss account, excluding taxes.