Specialized Valuation Service
CAS-4 Certification for Captive Consumption
Expert valuation of goods transferred for captive consumption under Cost Accounting Standard 4, ensuring accurate excise and GST compliance.
Cost Accounting Standard 4 (CAS-4) prescribes the methodology for determining the cost of production of goods transferred for captive consumption within a company or to related parties. This valuation is critical for arriving at the assessable value under GST Rule 30 (captive consumption) and for transfer pricing purposes.
Many manufacturing companies with multiple divisions or inter-unit transfers require a CAS-4 certificate issued by a practicing Cost Accountant. Without proper CAS-4 valuation, companies risk under-valuation assessments, GST demands, and transfer pricing adjustments.
Malay Biswas & Co. has extensive experience in CAS-4 certifications across cement, chemical, textile, and FMCG sectors. We ensure that your cost of production computations follow the prescribed standard and withstand regulatory scrutiny from GST authorities, Income Tax, and customs departments.
Key Highlights
- Certified by Practising CMA (COP: 007684)
- Compliant with CAS-4 (Revised 2015) standards
- Accepted by GST, Income Tax & Customs authorities
- Experience across cement, chemicals, FMCG sectors
- Transfer pricing documentation support
- Quick turnaround — typically 7-10 working days
What We Deliver
Service Deliverables
CAS-4 Cost Certificate
Formal certificate of cost of production per unit for each product transferred for captive consumption, certified by our practising CMA.
Cost of Production Computation
Detailed computation showing material cost, direct labour, factory overheads, quality control costs, and administrative overheads as per CAS-4 methodology.
Overhead Allocation Analysis
Proper allocation and apportionment of overheads to captive consumption products using appropriate cost drivers and activity-based methods.
Variance Analysis Report
Analysis of material consumption variances, yield variances, and overhead absorption rates to validate the accuracy of cost computations.
Regulatory Compliance Review
Assessment of CAS-4 compliance implications on GST valuation (Rule 30), transfer pricing (Section 92), and related party transactions.
Documentation Package
Complete documentation set for regulatory authorities including supporting schedules, cost allocation basis, and methodology notes.
Is This Relevant For You?
Who Needs This Service
Common Questions
Frequently Asked Questions
A CAS-4 certificate is a formal cost determination certificate issued by a qualified Cost Accountant. It determines the cost of production of goods that are used for captive consumption (i.e., consumed within the company rather than sold externally). You need it primarily for GST valuation purposes (Rule 30) and for transfer pricing compliance (Section 92) when goods are supplied to related parties.
A CAS-4 certification is a specific cost determination exercise focused on valuing goods for captive consumption. A cost audit (CRA-3) is a broader statutory examination of a company's overall cost records. CAS-4 certification is typically required for specific transactions, while cost audit is an annual statutory requirement.
For a single-product certification, we typically complete it within 7-10 working days after receiving all required data. Multi-product certifications may take 2-3 weeks depending on the number of products and complexity of overhead allocation.
Yes, absolutely. When GST authorities question the valuation of goods used for captive consumption, a CAS-4 certificate from a practising CMA serves as strong documentary evidence of the cost of production and the valuation methodology used.
You need to provide product-wise production data, raw material consumption details, direct labour costs, factory overhead schedules, quality control costs, and administrative overhead allocation basis. We provide a detailed data requirement checklist.
Ready to Get Started?
Schedule a confidential consultation with our CMA practitioner. We'll review your requirements and provide a clear roadmap.