CBDT has invited suggestions/comments on the draft Form No. 6C from stakeholders and general public. The deadline for submitting suggestions/comments is August 31, 2023.
The draft Form No. 6C is a form that will be used by cost accountants to submit inventory valuation reports to the assessing officers. The report will be required to be submitted under section 142(2A) of the Income Tax Act, 1961, which was amended by the Finance Act, 2023.
The amendment to section 142(2A) gives the assessing officer the power to appoint a cost accountant to value the inventory of a taxpayer if the taxpayer’s method of valuation is not in accordance with the prescribed guidelines. The cost accountant will be required to submit a report to the assessing officer setting out the method of valuation adopted and the reasons for adopting such method.
The draft Form No. 6C is a comprehensive form that covers all the aspects of inventory valuation. However, there are some aspects that could be improved. For example, the form does not specify the method of valuation that should be adopted by the cost accountant. This could lead to confusion and uncertainty.