Manufacturers and FMCG companies face complex production accounting and tax challenges. Here's how we help you navigate them.
Managing ITC across raw materials, capital goods, and services while ensuring compliance with GST rules on blocked credits and reversals.
Accurate costing of raw materials, work-in-progress, and finished goods across multiple production stages and locations.
Depreciation schedules, MAT credit planning, and optimizing deductions under Section 32AC for new plant and machinery investments.
Inter-unit transfers, related party transactions, and maintaining TP documentation for group companies and associated enterprises.
Managing duty drawback, MEIS/SEIS schemes, advance authorization, and EPCG compliance for international trade.
Tracking direct and indirect manufacturing costs, overhead allocation, and variance analysis for profitability optimization.
Specialized accounting and tax advisory for production and distribution companies
End-to-end financial solutions for production and FMCG companies
Real-time tracking of material, labor, and overhead costs
Stage-wise cost allocation for continuous production
TP study, benchmarking, and Form 3CEB compliance
Duty optimization and compliance for imports/exports
Inventory optimization and receivables financing
Carbon accounting and sustainability disclosures
A manufacturer carries raw material, work in progress and finished goods, and tax credit moves with each of them. Small errors in credit, stock or vendor payments multiply across a year of production.
Credit depends on supplier filing, invoice matching and the blocked-credit rules in Section 17(5) of the CGST Act. We test each month's credit against GSTR-2B before it is used.
Raw material, work in progress and finished goods are valued at the lower of cost and net realisable value. Overhead absorption, scrap and by-products must be treated consistently, since the closing stock figure flows straight into profit.
Companies in notified sectors above the prescribed limits must maintain cost records and may need a cost audit under the Companies Act. We check whether your products and turnover bring you within the rules.
Payment to Udyam-registered micro and small suppliers beyond the permitted period can be disallowed as a deduction. Manufacturers who buy from many small vendors should run a payables ageing before each year end.
Goods sent for job work need challans and tracking so they return within the permitted time. Missing documents can turn a temporary movement into a taxable supply.
Businesses above the notified turnover threshold must generate e-invoices, and goods in transit need e-way bills. Purchases from unregistered suppliers in notified categories attract reverse charge.
Manufacturing clients get a monthly close built around stock and cost. Try the depreciation calculator for plant and machinery schedules, and see how our audit and assurance team supports statutory and cost audits.
Generally yes, if the goods are used in making taxable supplies and are not in the blocked list. Credit cannot be claimed on the tax component if depreciation is also claimed on it. Check each asset before claiming.
At the lower of cost and net realisable value, using a consistent method such as weighted average or FIFO. Production overheads are included in the cost of work in progress and finished goods under accounting standards.
It is a rule in the income-tax law that allows a deduction for amounts owed to micro and small enterprises only when paid within the prescribed period. Amounts unpaid beyond that period are disallowed in that year.
It depends on the industry, product and turnover limits notified under the Companies Act. We review your products against the current rules.
The movement may be treated as a supply and become taxable. Keep challans, track dispatches and get written confirmations from job workers.