Document text
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 27th September, 2023
INCOME-TAX
G.S.R. 697(E).-- In exercise of the powers conferred by sub-section (2A) of section 142 read with section
295 of the Income-tax Act, 1961 (hereinafter referred to as the Act), the Central Board of Direct Taxes hereby makes
the following rules further to amend the Income-tax Rules, 1962, namely:––
1.
Short title and commencement.–– (1) These rules may be called the Income-tax (Twenty Second
Amendment) Rules, 2023.
(2) They shall come into force from the date of publication in the Official Gazette.
2.
In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), for rule 14A, the following rule
shall be substituted namely:––
“14A. Forms for report of audit or inventory valuation 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:––
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
“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 of, and incidental to, audit or inventory valuation (including the remuneration of the Accountant or
Cost Accountant, qualified Assistants, semi-qualified and other Assistants who may be engaged by such Accountant
or Cost Accountant) shall not be less than three thousand seven hundred and fifty rupees and not more than seven
thousand and five hundred rupees for every hour of the period as specified by the Assessing Officer under sub-
section (2C) of section 142.
(3) The period referred to in sub-rule (2) shall be specified in terms of the number of hours required for completing
the report.
(4) The Accountant or Cost Accountant referred to in clause (i) or clause (ii) of sub-section (2A) of section 142 shall
maintain a time-sheet and shall submit it to the Chief Commissioner or Commissioner, along with the bill.
(5) The Chief Commissioner or the Commissioner shall ensure that the number of hours claimed for billing purposes
is commensurate with the size and quality of the report submitted by the Accountant or Cost Accountant.”.
4.
In the principal rules, in Appendix II,––
(a) in Form No. 6B:––
(i)
for the heading of the Form, the following shall be substituted, namely:––
“Audit report under clause (i) of section 142(2A) of the Income-tax Act, 1961”;
(ii)
in the Notes, for serial number 2 and entries relating thereto, the following serial number and entries shall be
substituted, namely – “2. This report has to be given by the accountant nominated by the Principal Chief
Commissioner or Chief Commissioner or Principal Commissioner or Commissioner of Income-tax under clause (i)
of section 142(2A) of the Income-tax Act, 1961.”;
(b) after Form No. 6C, the following Form shall be inserted, namely:––
“FORM NO. 6D
[See rule 14A]
Inventory Valuation report under clause (ii) of section 142(2A) of the Income-tax Act, 1961
1. * I/We have examined the books of account and other documents with respect to inventory and inventory
valuation of__________________________[name and address of the assessee] Permanent Account No.
___________________ for the assessment year ___________ as at ________________________.
2. * I/We have conducted Inventory Valuation in compliance with 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
[भाग II—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
19
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 particulars and such other particulars as were required by the Assessing Officer by order No.
_______________________ dated __________________are annexed hereto. In * my/our opinion and to the
best of *my/our information and according to explanations given to * me/us, these are true and correct.
7. Any variations observed in the Inventory Valuation Report compared to the disclosures made in Form No.
3CD (or if no Form No. 3CD has been furnished, then value as per audited accounts) have been adequately
explained along with the reasons and justifications thereof.
Place ............
Date .............
Signed
**Name of Cost Accountant………
Address
……….
Membership Number ………
UDIN .…..…..
Notes:
1. *Delete whichever is not applicable.
2. **This report has to be given by the Cost Accountant nominated by the Principal Chief Commissioner or
Chief Commissioner or Principal Commissioner or Commissioner of Income-tax under clause (ii) of section
142(2A) of the Income-tax Act, 1961.
3. Where any of the matters stated in this report is answered in the negative or with a qualification, the report
shall state the reasons therefor.
4. The opening values have been taken from the books of account and other documents as produced by the
assessee.
5. Relevant period shall be the period specified by the Assessing Officer.
ANNEXURE
Inventory Valuation Report of Cost Accountant
Information of the Assessee
1
Address (Head Office / other premises and branches)
a.
b.
c.
….
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
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
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 claim
relating to inventory due to fire or accident or any other reason. If so,
give details.
Note: In case available, details of HSN codes and SAC code for services should be provided for principal products/
services.
8. Give summarized details of Financial Results (as per the Audited Accounts of the Assessee)
Details of Financial Results (as per the Audited Accounts of the Assessee)
S. No.
Particulars
Year under
reporting
Previous
Year 1
Previous
Year 2
1
Turnover
2
Profit (Loss) before tax
3
Less: Taxes paid
4
Profit (Loss) after tax
5
Raw Materials Consumed
6
Opening Inventory
7
Closing Inventory
8
Average Inventory Holding Period (days)
={365/(Turnover [1]/Average Inventory)}
Average Inventory = {[6]+[7]}/2
9
Average Raw Material Stock to Consumption (days)
10
Average. Stores and Spares Stock to Consumption (days)
9. In respect of items manufactured, full quantitative details of raw materials and finished products as indicated
below (consolidated at entity level):
(i) Details of Raw Material (RM) for the relevant period under reporting -
S.
No.
Details
Raw Material
description
Unit of
Measurement
(UOM)
Opening
stock
Purchases
during the
relevant
period
Consumption
of Raw
Material
during the
relevant
period
Raw
Material
sold
during the
relevant
period
Closing
stock
Other
adjustments
1.
RM1
2.
RM2
[भाग II—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
21
3.
RM3
……
Others
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
Measure
ment
(UOM)
Opening
stock
Quantity
(Qty)
manufactured
during the
relevant
period
Quantity
purchased
during the
relevant
period
Quantity
sold
during
the
relevant
period
Quantity
rejected
during
the
relevant
period
Quantitative
adjustments,
if any * (add
reasons)
Closing
stock at
the end
of the
relevant
period
Opening
Work-in-
Progress
Closing
Work-in-
Progress
1.
Item 1
2.
Item 2
3.
Item 3
.........
Others
*(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 / work-in-progress items respectively should be
reported item-wise separately. Inventory of all other manufactured goods / traded goods / work-in-progress
items constituting balance may be clubbed under “Others”
10.
(i) Has the assessee conducted physical verification of raw materials,
stores and finished products, etc. or traded goods mentioned above?
(ii) Details of discrepancies, if any
11.
(i) Whether valuation is in conformity with the 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
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
2
Product 2
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.
Description
Item
Code
UOM
Opening Stock
Closing Stock
Qty
COP/
PV
(Rs.)
NRV
(Rs.)
Lower of
(6) or (7)
(Rs.)
Value
(5) x (8)
(Rs.)
Qty
COP/
PV
(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
Product 1
2
Product 2
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 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)
(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
Closing Stock
Qty
Purchase
cost
(Rs.)
Repla-
cement
rate
(Rs.)
Lower
of (6) or
(7)
(Rs.)
Value
(5) x (8)
(Rs.)
Qty
Purchase
cost
(Rs.)
Repla-
cement
rate
(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
RM 1
2
RM 2
3
RM 3
…..
Total
Note: Add or delete rows as per the number of Raw Material items
[भाग II—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
23
(iv) Valuation of By-Products
Sl.
Description
Item
Code
UOM
Opening Stock
Closing Stock
Quantity
NRV (Rs.)
Value
(5)x(6) (Rs.)
Quantity
NRV (Rs.)
Value
(8)x(9) (Rs.)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
1
By-Product 1
2
By-Product 2
3
By-Product 3
……….
Total
NRV: Net Realisable Value
Note: Add/Delete Rows as per the number of By-Products.
(v) Valuation of Intermediate Products (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
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
Stores, Spares and Consumables
Scrap
Others
Total
(vii) Summary of Inventory Valuation as on _______________
Sl.
Particulars
Value as per Form No. 3CD
(Rs.)
(If Form No. 3CD not
furnished, then value as per
audited accounts)
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
Finished Goods
2
Stock- in-Trade
24
THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
Sl.
Particulars
Value as per Form No. 3CD
(Rs.)
(If Form No. 3CD not
furnished, then value as per
audited accounts)
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)
3
Work-in-Progress
4
Raw Material
5
By-Products
6
Intermediate products
7
Jigs, Tools, and Dies
8
Stores,
Spares
and
Consumables
9
Scrap
10
Others
11
Total
12
Impact on Profit or Loss
13
Impact on Income Tax
(viii) 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.
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
(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-trade which are dealt with by the Income
Computation and Disclosure Standard on securities;
[भाग II—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
25
(d)
Producers’ inventories of livestock, agriculture and forest products, mineral oils, ores and gases to the extent
that they are measured at net realisable value;
13. Details of inventory valuation for the relevant period under reporting by the Cost Accountant (wherever
ICDS II is not applicable) –
A. Inventory valuation for Assessees engaged in the Construction Contracts which are dealt with by the
ICDS III
(i) Valuation of Completed Units Ready for Sale
Sl.
Description
Type of
Completed
units
Subtype if
any
Closing Stock
Opening Stock
Qty
Cost of
the unit
for each
type
(Rs.)
NRV
(Rs.)
Value
[(5) X
lesser of
((6) or
(7))](Rs.)
Qty
Cost of
the unit
for each
type
(Rs.)
NRV
(Rs.)
Value [(9)
X lesser
of ((10)
or (11))]
(Rs.)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
1
Project 1
2
Project 2
3
Project 3
…..
Total
Notes:
1. Type means BHK size/Affordable/ Premium/Commercial etc. which is identifiable as different sale unit
2. Completed Units mean Plots/Flats/commercial units/Villas/Floors which are ready for sale and have been
included 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
Opening Stock
%age
Completion
Total to-date
construction
cost(Rs.)
Cost as per
recognised
revenue
(Rs.)
Value of
Work-
in-
progress
[(4)-(5)]
(Rs.)
%age
Completion
Total to-date
construction
cost
(Rs.)
Cost as per
recognised
revenue
(Rs.)
Value of
Work-in-
progress
[(8)-(9)]
(Rs.)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
1
Project 1
2
Project 2
3
Project 3
………
Total
Note: Add number of rows depending on the number of Projects
(iii) Valuation of construction materials
Sl.
Description
Item
Code
UOM
Opening Stock
Closing Stock
Qty
Purchase cost (Rs.)
Repla-
cement
rate
(Rs.)
Lower
of (6) or
(7)
(Rs.)
Value
(5) x
(8)
(Rs.)
Qty
Purchase
cost (Rs.)
Repla-
cement
rate
(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
Material 1
2
Material 2
3
Material 3
……….
Total
Note: Add number of rows depending on the number of Construction Materials
26
THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
(iv) Valuation of construction fittings, supporting equipment and others
Sl.
Description
Item
Code
UOM
Opening Stock
Closing Stock
Qty
Purchase cost (Rs.)
Repla-
cement
rate
(Rs.)
Lower
of (6)
or (7)
(Rs.)
Value
(5) x
(8)
(Rs.)
Qty
Purchase
cost (Rs.)
Repla-
cement
rate
(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
Item 1
2
Item 2
3
Item 3
………
Total
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
Construction Materials
4
Construction Fittings, supporting equipment and Others
Total
Impact on Profit or Loss
Impact on Income Tax
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.
Completed units ready for sale
b.
Construction Work-in-progress
c.
Construction Materials
d.
Construction Fittings, supporting equipment and
Others
Note: Specify the method used to determine the stage of completion of contracts in progress
(vii) Any other relevant comment, observation or qualification of the Cost Accountant
B. Inventory valuation for Assessees engaged in the trading of Securities which are dealt with by the ICDS VIII.
(i)(a) Valuation of Listed Shares held as Stock-in-trade
Sr.
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.)
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 3
……..
Total
[भाग II—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
27
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.)
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 3
……….
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.)
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
Debt Security 1
2
Debt Security 2
3
Debt Security 3
…………..
Total
AC: Actual Cost
NRV: Net Realisable Value
Note: Add number of rows depending on the number of Debt securities
(iii) Valuation of Convertible 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.)
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
28
THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
(iv) Valuation of Any other security 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.)
Lower of
(9) or (10)
(Rs.)
Value
(8)X (11)
(Rs.)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
1
Any other Security 1
2
Any other Security 2
3
Any other Security 3
…………….
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 stock-
in-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)
(5) – (3)
(6) – (4)
1
Listed Shares
2
Unlisted Shares
3
Debt Securities
4
Convertible Securities
5
Any other Security
Total
Impact on Profit or Loss
Impact on Income Tax
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.
[भाग II—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
29
(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)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
1
Livestock 1
2
Livestock 2
3
Livestock 3
…………
Total
NRV: Net Realisable Value
Note: Add number of rows depending on the number of Livestock
(ii) Valuation of Inventory of Agriculture and Forest Produce
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
Produce 1
2
Produce 2
3
Produce 3
…………
Total
NRV: Net Realisable Value
Note: 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
30
THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
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
Opening
Closing
Opening
Closing
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(5) – (3)
(6) – (4)
1
Livestock
2
Agriculture and Forest Produce
3
Mineral oils, Ores and Gases
Total
Impact on Profit or Loss
Impact on Income Tax
Note: Specify the amount by which profit or loss would be affected by the changed valuation.
(v) 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.
Livestock
b.
Agriculture and Forest Produce
c.
Mineral oils, Ores and Gases
(vi) Any other relevant comment, observation or qualification of the Cost Accountant
Place ……………...
Date ……………...
Signed
Name of Cost Accountant ….…………...
Address
……………...
Membership Number
……………...
UDIN
……………..”.
[Notification No. 82/2023/F.No. 370142/29/2023-TPL]
JIVITESH ANAND, Under Secy. (Tax Policy and Legislation Division)
Note. – The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii)
vide notification number S.O. 969 (E), dated the 26th March, 1962 and was last amended vide notification
number G.S.R. 685(E) dated 25th September, 2023.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
