Laws and sections by number or title, due dates, pages, and updates.
The Central Board of Direct Taxes amends the Income-tax Rules, 1962 to update forms and expense rules for audits and inventory valuations under section 142(2A). The rule specifies Form No. 6B for account audits and Form No. 6D for inventory valuations. Every Chief Commissioner maintains a panel of accountants and cost accountants. The audit or inventory valuation expenses range from three thousand seven hundred and fifty rupees to seven thousand and five hundred rupees for every hour. The accountant or cost accountant maintains a time-sheet and submits it with the bill. These rules come into force from the date of publication in the Official Gazette.
What you must do
Key dates
Who is affected
Thresholds
Ask about this notification
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:––
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.
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.”.
“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 ––
“Audit report under clause (i) of section 142(2A) of the Income-tax Act, 1961”;
“FORM NO. 6D [See rule 14A] Inventory Valuation report under clause (ii) of section 142(2A) of the Income-tax Act, 1961
* 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 ________________________.
* 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 __________________.
* 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.
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:
……………………..
………………………………..
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.
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:
ANNEXURE Inventory Valuation Report of Cost Accountant
Information of the Assessee
1 Address (Head Office / other premises and branches) a. b. c. ….
Date of incorporation/ Date of formation / Date of birth
Nature of business activity
Details of principal products / services
Details of books of account and other documents maintained with respect to inventory
(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.
