CBDT Notifies Form 6D for Furnishing of ‘Inventory Valuation Report’ Under Section 142(2A)

Notification No. 82/2023, dated 27-09-2023

The Finance Act 2023 substituted Section 142(2A) to empower the AO to appoint a cost accountant for the valuation of inventory. The Assessing Officer can issue the direction for the valuation of inventory if he is of the opinion that it is necessary in the interest of the revenue to do so.

However, the Assessing Officer must obtain previous approval from the PCCIT/CCIT/PCIT/CIT for giving directions for inventory valuation. The cost accountant is required to submit the report in a prescribed format. Corresponding amendments are also proposed to Section 295 to empower the CBDT to make rules in this regard.

Exercising such power, the Central Board of Direct Taxes (CBDT) has substituted Rule 14A and Rule 14B notifying Form and guidelines to determine expenses for inventory valuation under section 142(2A).

Rule 14A has been amended to provide that the inventory valuation report of an assessee, which is required to be furnished under section 142(2A), shall be in Form No. 6D.

Similarly, Rule 14B provides that remuneration for the audit (including the remuneration of Accountant, qualified Assistants, semi-qualified and other Assistants who may be engaged by such Accountant) shall not be less than Rs. 3,750 and not more than Rs. 7,500 for every hour of the period as specified by the Assessing Officer.

Said rule has been amended to include similar remuneration for Cost Accountant conducting inventory valuation under section 142(2A).

Click Here To Read The Full Notification