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 Value Excise Duty Example : Purchase Of Raw Material PURCHASE A/C DR. 10,000 1,000 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 Payment Of Duty Purchase For taking Credit Production For levying Duty
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 levying Duty Disposal For Payment Of Duty
INVOICE DESPATCH DEPT EXCISE DEPT Qty. of FG ( Manuf ) Qty of FG (Sold)Assessable Value Duty 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 6 Amount Payable = Duty Payable Credit Utilized MONTH END
Corresponding Entry in Accounts Department Eg - For Payment of Duty through PLA of Rs 800. PLA A/CDr. 800 To Cash A/C800 Eg - For Adjusting Duty Payable A/C of Rs 1,500. Excise Duty Payable A/C Dr. 1,500 To PLA A/C 800 To Excise Duty Receivable 700
OTHER POINTS FOR ATTENTION To check the system of reversing credit on 181 st 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 1 st day of the next year or not. Reconciliation should be made with Accounts Department periodically.