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

ER-4 reporting: report inputs and finished goods values excluding taxes where CENVAT credit is availed. ER-4 requires reporting inputs and finished goods values excluding taxes where CENVAT credit is availed. Column 3(a) collects total value of inputs, packing materials and components used in manufacture per purchase invoice or import document excluding taxes. Column 3(ii) requires value and quantity of each major raw material consumed, using the Schedule VI major-item disclosure approach. Column 4(i) requires gross sales value per the Profit & Loss account, and 4(ii) requires value and quantity of each major finished good sold; all figures exclude taxes for which credit is taken.