With the help of its zonal units, the directorate general of audit regularly monitors central excise and service tax audits conducted by the commissionerates to. Hence, the broad framework of ea2000, as currently laid down in ceam 2008, is referred to throughout this manual. Jul 21, 2008 last year were facing ea2000 audit from excise commissioner office. Checklist for central excise compliance accounts knowledge hub. Production of additional evidence before commissioner appeals 5. By selecting library from the top line menu in notebook, the excise examiner can access audit guides, rate reference, the. Excise audit 2000 excise audit 2000 ea 2000 is a new system of audit initiated from 1st december 1999. The departmental audit under caap will involve examination and analysis of business private records that are maintained electronically. Central excise revenue audit office of director general. In september 2000, the central board of excise and customs made this audit applicable in case of all assessees paying cash duty of over rs. Also all statutory records were abolished and now assesses are allowed to maintain their own records in whichever form they like provided the ess.
Adgaudit right to information central excise, chennai. Dear friend, audit is a verification of financial accounts and other records particularly records relating to production, clearance of goods or provision of service by the assessees to ascertain that duties of central excise service tax are correctly paid. The following shall be few aspects out of the major avenues in which this article can be subvisited. This is more systematic wherein the auditors are required to gather basic information. Referencer customs central excise service tax caap. The central excise department on various dates has issued intimation under rule 5a2, to assessees for making a reference to conduct an audit under ea 2000. Excise act read with central excise valuation rules 2000. Liquor excise licence compliance procedures manual 2. The above observations under ea2000 would be a tip of an iceberg, but it would be pertinent to mention that excise audit is an event, through which the assessee can resolve the wide gamut of legal issues in the most amicable manner. A requirement of ea 2000 is that the auditors must be thorough in their knowledge of centr al excise law and procedures, notifications, instructions and circulars issued by the finance ministry and the judicial decisions on issues relating to central excise laws. This would also apply to a dd user who was exempt from federal excise tax but not.
Audits are a learning opportunity for correct excise tax reporting. The the type of functional areas which can be subject matter of audit in relation to central excise are. May 02, 2016 excise audit 2000 excise audit 2000 ea 2000 is a new system of audit initiated from 1st december 1999. Special audits excise duty by central excise department. Read about company and get contact details and address. Chapter 10 deals with the audit of custom and excise duties. The linkages and discrepancies in the assessees data are detected for the purposes of identifying and narrowing down the possible areas of tax noncompliance, which helps in conduct of ea 2000 audit. Excise audit manual including ea 2000 january 2003 centax publications pvt. It is indeed my proud privilege to launch this website of central excise audit commissionerate, jaipur, more particularly in the year being celebrated as the year of taxpayer services by cbec and its formations. Central excise revenue audit manual chapters 20, 22, 23 and 24 5 mcqs books recommended.
Hence, the traditional audit was replaced by a new audit system, termed as excise audit 2000 ea 2000. Aug 21, 20 the clearances, manufacture records, cenvat, job work, returns, stock, valuation, registers and other all sought of records is a clear indication of the depth required to ensure a smooth and hassle free audit is taken by the assessee. Training in excise audit 2000 instructors guide asian development bank. A minimum of 15 days notice should be issued to the concerned assessee before commencing any audit. This is a more systematic form of audit wherein the auditors are required to gather basic information about the assesee and analyze them to find.
Officers, when posted to the audit commissionerate for the first time, should invariably be sent for training in ea 2000 and financial accounting so that they have. Salient features of excise audit 2000 introduction the economic liberalisation initiated in 1991 by the government carried a special focus on tax reform as it was felt that complexities in levy and collection of tax could fetter economic activity. A brief overview of the ea 2000 process of audit is given in the. Last year were facing ea2000 audit from excise commissioner office.
Salient features of excise audit 2000 central excise, chennai. Examples showing computation of income taxes payable by individuals and companies are included for guidance. This document provides a clear and precise road map for a trainer to follow and to impart training in an effective, planned, coherent, and uniform manner aligned with the latest central excise audit capacity building for tax administration. Excise audit manual 2008 free ebook download as pdf file. What is excise audit 2000 cbec manual central excise. Ours is a new commissionerate, one of the 45 such audit commissionerates set up across the country in oct 2014 and after getting. The system of manual audit is not adequate to handle the auditing of such assessees. Manual for the scrutiny of central excise returns 2008. Organisation structure of directorate general of audit. Concepts, exemptions, valuation, procedures documentation and records new system of department audit the revenue department has introduced a new system of central excise audit called ea 2000 using professional, financial, accounting. Central excise audits practical perspective for assessees. Central excise and service tax audit norms to be followed by the audit commissioneratesreg 1.
Introduction what is excise audit 2000 procedure of excise audit 2000 conclusion. It is an indirect tax paid by the manufacturer, who passes. Service tax no ea 2000 audit by departmental officers. Characteristics of a company that may benefit from excise tax services. The directorate general of audit, an organization under ministry of finance, department of revenue was created by the central board of excise and customs renamed as central board of indirect taxes and customs in july 2000 with headquarters at new delhi.
S ravi shankar, ca madhukar n hiregange the book is not only a conventional book on auditing but has approached the subject of excise audit from the legal standpoint apart from procedure and techniques of audit. Regarding excise audit 2000 ea 2000 guidelines circular no. General information persons who manufacture, sell, take orders, or deal in intoxicating liquor other than a servant or agent of a person who would otherwise require a licence are required to hold the appropriate excise liquor licence in order to trade legitimately. The essential philosophy of ea 2000 is that this audit is based on the scrutiny of business records of the assessee. Revenue audit manualindirect taxes central excise 4. Audit under central excise cera ea2000 how to handle audit. Hence, the broad framework of ea 2000, as currently laid down in ceam 2008, is. Auditing of their records require understanding of not only the accounting systems but also computer skills to read and process data files. Also all statutory records were abolished and now assesses are allowed to maintain their own records in whichever form they like provided the essential information required for calculation of duty liability can be obtained from such records. Central excise valuation determination of price of excisable goods rules 2000. Hence, the broad framework of ea2000, as currently laid down in ceam 2008, is.
Ea2000 audit is based on the scrutiny of private records of the assessee. For the said purpose, the necessary documents were demanded from the petitionersassessees. This would also apply to a dd user who was exempt from federal excise tax but not state fuels tax such as a city, county, a state agency or a political subdivision of the. It gives me immense records 1 20 of 325 central excise revenue audit manual, income tax, goods and services tax, regards,yagay and sunmanagement and indirect tax 10 apr 2015 the audit standards as contained in chapter 5 of this manual are observed while course on central excise audit to familiarize themselves with the audit. Hence, the traditional audit was replaced by a new audit system, termed as excise audit2000 ea2000. Selection of units for audit is extremely important as it permits deployment of the existing administrative resources for achieving effective audit results. An effective taxpayer audit plays a key role in improving compliance and augmenting tax revenues. The triplicate copy of application shall be sent either to the officer with whom rebate claim is to be filed or to the excise rebate audit section. In the anxiety to achieve maximum audit results in terms of detections and spot recoveries while completing audits in a timely manner, ea 2000 auditors may sometimes slacken. The clearances, manufacture records, cenvat, job work, returns, stock, valuation, registers and other all sought of records is a clear indication of the depth required to ensure a smooth and hassle free audit is taken by the assessee. Therefore, the entire audit process is regulated by the central excise audit manual ceam, which was first prepared in 1999, and thereafter, updated in 2001, 2003, and 2008. Revenue audit manual 31800 ii preface revenue audit together with a checklist of key questionstests.
In that, they can audit last 5 years, where excise part was clear. The central excise department has thus, evolved a new system of departmental audit in view of the fact that all the statutory records to be maintained by the assessee have been abolished in year 200001. The sai bangladesh published a revenue audit manual in august 2000 under previous reform initiative known as reforms in government audit riga as per the then available standards. Central excise revenue audit office of director general of. Central excisecentral excise is a levy tax, levied on a commodity manufactured within the country by the uniongovernment by an act of parliament usually in the finance bill, in the presentation of the budget in theparliament, generally on the last working day of february every year by notifying under a tariff. A brief overview of the ea 2000 process of audit is given in the succeeding. Audit report under vat law ca final may10 video by edupedia world. And telling that this ea 2000 was applicable to dealers also from this year, where turnover is morethan 5 crores. Special offer on gst package for cas as per the mou with icai. Each part provides explanatory notes and guidance note to facilitate personnel handling compliance. Hi, i received a letter from servicetax gst department about conducting audit in my unit next month. In the anxiety to achieve maximum audit results in terms of detections and spot recoveries while completing audits in a timely manner, ea 2000 auditors may sometimes slacken the rigour of the prescribed process. The book is not only a conventional book on auditing but has approached the subject of excise audit from the legal standpoint apart from procedure and techniques of audit. Central excise revenue audit cera is one of the receipt audit wings of office of the principal director of audit central, kolkata.
Purpose of this manual is to lay down audit standards, instructions, policies and procedure relating to audit of an assessee and ensure that audits are uniform. Integrated central excise and service tax audit manual 2015 cestam2015. For detailed audit steps or audit procedures, parts ii and iii. Eximkey india dgft, customs, excise, export import policy, foreign. I only registered under service tax law as a service provider i am not a manufacturer or good import exporter i have no registration in central excise. As per the guidelines, frequency norms of audit for service tax assessees tax payers whose annual service tax payment including cash and cenvat was rs. The actual auditing under ea2000, will therefore, commence from 1st december 1999. Here we didnt observe that our sale turnover or purchase turnover or excise turnover. Audit commissionerates have been created with an objective to improve the functional efficiency of audit in the field formations. Manual for the scrutiny of central excise returns 2008 1 for departmental circulation only. Tiol tax news, gst, income tax, service tax, customs. Each part provides explanatory notes and guidance note to facilitate personnel handling. The central excise department on various dates has issued intimation under rule 5a2, to assessees for making a reference to conduct an audit under ea2000. Cera central excise revenue audit ceta central excise tariff act.
The audit process f what to expect f how to prepare ff during the audit f finalizing the audit f rights and responsibilities the washington state department of revenue routinely audits businesses to determine whether state excise taxes were reported and paid correctly. The central excise department has thus, evolved a new system of departmental audit in view of the fact that all the statutory records to be maintained by the assessee have been abolished in year 2000 01. For ccp to calculate the interest, the excise examiner must include a list of the transaction dates and amount of tax due for each transaction in the case file at closing. Central excise manual, chapter15, introduction, procedure of. Excise audit manual 2008 audit auditors report scribd.
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