TaxTMI 
TaxTMI 
Forms 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 1962
X X X X Extracts X X X X
X X X X Extracts X X X X
....aluation 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 14....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. Date of incorporation/ Date of formation / Date of birth 3. Nature of business activity 4. Details of principal products / services 5. Details of books of account and other documents maintained with respect to inventory 6. (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 (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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....p; 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 Shortage/ Wastages / Rejects, etc. (ii) (a) Quantitative details in respect of items manufactured / traded by the Assessee for the relevant period under reporting - S. No. Finished products/ Work-in - Progress Description Item Code Unit of Measurement (UOM) Opening stock Quantity (Qty) manufactured during the r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Income Computation and Disclosure Standards (ICDS) notified under sub-section (2) of section 145 of the Income-tax Act, 1961? (ii) Details of discrepancies, if any 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 Sl. Description Item Code UOM Opening Stock Closing Stock Qty COP/ PV (Rs.) NRV (Rs.) Lower of (6) or (7) Value (5) x (8) (Rs.) Qty COP/ PV (Rs.) NRV (Rs.) Lower of (11) or (12) Value (10) x (13) (Rs.) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 1 Product 1 2 Product 2 3 Product 3 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(12) (Rs.) Value (10) x (13) (Rs.) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 1 WIP 1 2 WIP 2 3 WIP 3 ......... Total 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 Sl. Description Item Code UOM Opening Stock Qty P....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 2 IMP 2 3 IMP 3 ....... Total 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 Description Opening Value (Rs.) Closing Value (Rs.) Jigs, Tools, and Dies ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sp; 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....luded 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 %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-date construction cost (Rs.) Cost as per recognised revenue (Rs.) Value of Work-inprogress [(8)-(9)] (Rs.) (7) (8) (9) (10) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....st (Rs.) Replacement rate (Rs.) Lower of (11) or (12) (Rs.) Value (10) x (13) (Rs.) (10) (11) (12) (13) (14) 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (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.) Lo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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. Descrip....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 &n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e: Add number of rows depending on the number of produce (iii) Valuation of Inventory of Mineral Oils, Ores and Gases 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 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.) V....