Section 277(1)

For the purposes of determining the income chargeable under the head “PGPB”-

Valuation of Inventory

(i) valuation of inventory shall be made at lower of

actual cost or

NRV

computed as per ICDS notified u/s 276(2);

(ii) valuation of purchase and sale of goods or services and valuation of inventory

shall be adjusted to include any tax, duty, cess or fee (by whatever name called) actually paid or incurred to bring the goods or services to the place of its location and condition as on the date of valuation;

Valuation of Inventory being security

(iii) inventory being securities not listed or listed but not regularly quoted on a recognised stock exchange,

shall be valued at actual cost initially recognised as per ICDS notified u/s 276(2);

(iv) inventory being securities other than those referred to in clause (iii),

shall be valued at lower of actual cost or NRV as per ICDS notified u/s 276(2).

Section 277(2)

For the purposes of sub-section (1),

inventory being securities held by a scheduled bank or public financial institution

shall be valued as per ICDSs notified u/s 276(2) after taking into account the extant guidelines issued by RBI in this regard.

Section 277(3)

For the purposes of sub-sections (1) and (2),

comparison of actual cost and net realisable value of securities shall be made category-wise.

Section 277(4)

For the purposes of this section,

any tax, duty, cess or fee (by whatever name called) under any law in force,

shall include all such payment irrespective of any right arising as a consequence to such payment.

Section 277(5)

For the purposes of this section, “public financial institution” shall have the same meaning as assigned to it in section 2(72) of the Companies Act, 2013.