CAS-4 Certification

What is CAS-4?

Cost Accounting Standard 4 — Cost of Production for Captive Consumption

CAS-4 is one of the Cost Accounting Standards issued by the Institute of Cost Accountants of India (ICMAI). It prescribes the principles and methods for determining the cost of production of goods captively consumed — i.e., goods manufactured in-house and used within the same company for further production, or transferred to related parties.

A CAS-4 Certificate is issued by a qualified Cost Accountant (CMA) certifying the cost of production of the captively consumed goods. This certificate is critical in the following contexts:

GST on Captive Consumption: Under Section 17(5)(a) of the CGST Act, GST must be paid on goods captively consumed, and CAS-4 certificate establishes the taxable value.
Transfer Pricing: For arm's length pricing of inter-company product transfers, especially where cost-plus method is used.
Customs / Excise Proceedings: Evidence of cost of production in anti-dumping investigations and excise valuation disputes.
Bank Finance: Supporting documentation for credit facilities against stock or WIP.

CAS-4 at a Glance

Standard

Cost Accounting Standard 4 (CAS-4) — ICMAI

Cost Elements Covered

Direct Material, Labour, Overheads, Quality Control, R&D, Packing

Exclusions

Admin overheads, selling costs, interest on borrowed funds (unless specific)

Issued By

Registered Cost Auditor / CMA (ICMAI Member)

Request CAS-4 Certificate

Our Process

How We Issue a CAS-4 Certificate

Data Collection

Gather detailed cost data: raw material consumption, labour, utilities, machine usage, and overhead allocations for the specific product.

Cost Sheet Preparation

Prepare product-specific cost sheet in accordance with CAS-4 principles, segregating included and excluded elements.

Verification & Review

Cross-verify cost data with financial accounts, ledgers, and production records. Reconcile with audited cost statements.

Certificate Issuance

Issue CAS-4 Certificate signed and stamped by a Fellow Member of ICMAI (CMA), with UDIN for authenticity verification.

UDIN Generation

Each certificate carries a Unique Document Identification Number (UDIN) for verifiability with ICMAI's registry.

Period-end Revision

Certificates are updated quarterly or annually as cost structures change, ensuring the taxable value remains accurate.