PRACTICAL VIEW ON INTERNAL AUDIT OF EXCISE - CA. DHIRAJ RAJ SINDWANI.
-
Upload
ashton-chavez -
Category
Documents
-
view
220 -
download
1
Transcript of PRACTICAL VIEW ON INTERNAL AUDIT OF EXCISE - CA. DHIRAJ RAJ SINDWANI.
PRACTICAL VIEWON
INTERNAL AUDIT OF EXCISE
- CA.DHIRAJ RAJ SINDWANI
AGENDA
Activities related to Excise Department
Movement of Documents
Entries in Accounts Department
Main Points for attention in Internal Audit
Activities related with Excise Dept.
Excise linked with
Production Disposal
For levyingDuty
For PaymentOf Duty
Purchase
For taking Credit
TRANSIT LOSS
INVOICE (Purchase Bill)
INVOICE •Party Name•Regn. No.•Invoice No./ Date•Quantity•Value•Duty
2 units x duty of 3 units 3 units
GRN
2 units
EXCISE DEPT
Corresponding Entry in Accounts Department
Assessable ValueExcise Duty
Example : Purchase Of Raw Material
PURCHASE A/C DR.
10,000
1,0001,000
TO PARTY
11,000
CREDIT AVAILABLE IN PART II = EXCISE RECEIVABLE A/C
EXCISE RECEIVABLE A/C DR.
Credit
POINTS FOR ATTENTION (PURCHASE)
To check the system that Credit on all the Invoices has been taken, and taken once only.
To take Credit at the earliest possible.
Sample Checking.To check whether the balance
brought forward on next page is correct or not.
Entered on 28.9.07
on 3.10.07
We should take Credit up to 30.9.07, so that while paying duty on 5.10.07, we can use this Credit.
Invoices & RG 23 A/C II and
RG 23 A/C I & RG 23 A/C II
Activities related with Excise Dept.
Excise linked with
Disposal
For PaymentOf Duty
Purchase
For taking Credit
Production
For levyingDuty
Daily Production Report
PRODUCTION DEPT EXCISE DEPT
Qty of FG (Manuf)
POINTS FOR ATTENTION (PRODUCTION)
Entry should be made daily in DSA, whether there is production or not.
Entry of Finished Goods only i.e. Ready to Sell .
Surprise checking of DSA to ensure that all the data is being entered timely or not.
Activities related with Excise Dept.
Excise linked with
Purchase
For taking Credit
Production
For levyingDuty
Disposal
For PaymentOf Duty
INVOICE
DESPATCH DEPT
EXCISE DEPT
Qty. of FG (Manuf)
Qty of FG (Sold)Assessable ValueDuty Payable
Corresponding Entry in Accounts Department
Example : Sale Of Finished Goods
Sale Value 15,000
Excise Duty
1,500
PARTY DR.
TO EXCISE DUTY PAYABLE
TO SALES
16,500
15,000
1,500
DUTY PAYABLE AS PER DSA = EXCISE PAYABLE A/C
POINTS FOR ATTENTION (DESPATCH)
Entry should made in DSA in corresponding Account only. (for manufacturing also)
Physical checking of finished goods with balance as per DSA.
Proper check should be made on duty payable amount in DSA.
ER 1
PLA
Amount Paid
TR 6Amount Payable =
Duty PayableCredit Utilized
MONTH END
Corresponding Entry in Accounts Department
Eg - For Payment of Duty through PLA of Rs 800.
PLA A/C Dr. 800To Cash A/C 800
Eg - For Adjusting Duty Payable A/C of Rs 1,500.
Excise Duty Payable A/C Dr. 1,500To PLA A/C 800To Excise Duty Receivable 700
OTHER POINTS FOR ATTENTION To check the system of reversing
credit on 181st day in case of goods sent for Job Work.
To check ER-1 cautiously. Timely deposition (to check by Departmental Seal). All particulars given in ER-1 should be tallied with related
registers. Opening balances should be properly brought forward from last
month balances in ER-1.
Points related to payment of duty. Timely deposition (to check by Bank Seal on TR-6 challan). Payment through PLA even balance is available in RG 23A/C Part
II. Payment of Interest or Penalties through PLA only.
To check whether the remaining 50% Credit of Capital Goods is being taken on 1st day of the next year or not.
Reconciliation should be made with Accounts Department periodically.
THANK YOU