Central excise ea 2000 audit manual part 1

He is also a joint author of many books on central excise and service tax and vat. New system of department audit the revenue department his introduced a new system of central excise audit called ea 2000 using professional, financial, accounting and audit principles to replace current system which is more a mechanical checking of records. It shall override excise manual of supplementary instructions to the extent of conflict. Future changes in the central excise act, 1944 and the finance act. Central excise manual chapter 1 part i, introduction, an overview of central excise, chapter2 part i registration and ecc number, new excise control code ecc number, chapter3 assessment classification valuation provisional assessment, classification, valuation, provisionalassessment, manner of payment of duty and account current, scrutiny of.

Eximkey india dgft, customs, excise, export import policy. Amit kumar manager account bic auto pvtltd linkedin. In that, they can audit last 5 years, where excise part was clear. Part one legal compliance to be ensured on daily basis.

Excise audit 2000 has come a long way since its official launch by cbec vide circular no. The departments audit will be done by the officers of the department only and not by a chartered accountant. As per ea 2000 norms of central excise audits, the following shall be the audit. Departmental examination for confirmation of staff car drivers and havaldars for the year 201920 reg. Audit circlei audit circleii audit circleiii audit circleiv audit circlev audit circlevi audit circlevii audit circleviii.

Part c voluntary compliance of audit objections for voluntary compliance of the audit objections raised by the audit parties, there exists a provision under section 11a 2b of the central excise act wherein only applicable excise duty and interest can be paid on the spot and a letter seeking waiver of penaltyshow cause notice can. Central board of excise and customs, the governing body for. By arun jain, superintendent of central excise, ahmedabad. Accordingly, an auditor means, a central excise officer entrusted with the duty of conducting audit. Central excise circulars for year 2001 1 web site on indias dgft. The actual auditing under ea2000, will therefore, commence from 1st december 1999. The service tax audit manual outlines procedures to be adopted for. Since 15 days notice will be given actual audit can take place earliest from 1st december99. The the type of functional areas which can be subject matter of audit in relation to central excise are. Revenue audit manual part i section i and ii 10% iii. Central excise covering all audits by central excise officers under ea2000 using new.

The audits under ea 2000 hereinafter referred to as the audits protocol although started on an experimental basis in the year 2000 gained prominence over the years and have become one of the most emphatic wings of any excise commissionerate. 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. Hence, the broad framework of ea 2000, as currently laid down in ceam 2008, is. Here we didnt observe that our sale turnover or purchase turnover or excise turnover. Audit audit manual plan requiring focus during the audit.

Checklist for central excise compliance accounts knowledge hub. Section 4 1 b right to information and obligations of public authorities organisational structure and duties the beginning. The departmental audit under caap will involve examination and analysis of business private records that are maintained electronically. Central excise duties are levied on the goods manufactured in india. Adgaudit right to information central excise, chennai. Manual for the scrutiny of central excise returns 2008 3 contents preface 5 list of abbreviations 6 chapter 1. 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. Amendment of section 11a of the central excise act, 1944effect of time barred. Central excise revenue audit office of director general. Notifications home page of central board of excise and. The initial guidelines are contained in board s circular no. Special audits excise duty by central excise department. Salient features of excise audit 2000 central excise, chennai.

A minimum of 15 days notice should be issued to the concerned assessee before commencing any audit. All central excise audit groups,vadodaraii audit programme for 100% eoustp for the year 200809 the folowing 100% eoustp units are allotted to the audit groups as part of the ea 2000 audit programme for the year 200809. A brief overview of the ea 2000 process of audit is given in the. Commissioner under the overall supervision of the commissioner. The views of the commissionerate are categories as follows. It is a directed to say that certain views have been expressed by various commissionerates regarding implementation of the excise audit 2000 ea 2000. 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. Referencer customs central excise service tax caap. Service tax is an indirect tax administered by central excise department. He has helped the authors in authoring different editions of a book on central excise law and procedure, published by centax publications p ltd. Last year were facing ea2000 audit from excise commissioner office. Central excise revenue audit cera is one of the receipt audit wings of office of the principal director of audit central, kolkata. Thereafter, the steps are the same as those in ea 2000 audits.

Both central excise and service tax audit manuals are based on ea 2000 audit methodology. And telling that this ea 2000 was applicable to dealers also from this year, where turnover is morethan 5 crores. Power of central excise service tax department to conduct. Central excise instructions relating to adjudication in the central excise manual regarding. For the said purpose, the necessary documents were demanded from the petitionersassessees. Overall principles in these manuals are exactly same, the distinction between the two being the verification steps for compliance verification of each statute. It has completed almost five cycles as on date and after incorporating various amendments to the processes and procedures along the way including the introduction of a new audit manual from september 2001 is in its current version 2005. 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. Excise audit 2000 ea 2000 further guidelines for implementation i am directed to say that certain views have been expressed by various commissionerates regarding implementation of the excise audit 2000 ea 2000. Eximkey india dgft, customs, excise, export import policy, foreign. Audit by controller and auditor general audit by government on department termed as cera central excise receipts audit 3.

Central excise act and section 73 of the finance act, 1994 for service. Part c voluntary compliance of audit objections for voluntary compliance of the audit objections raised by the audit parties, there exists a provision under section 11a 2b of the central excise act wherein only applicable excise duty and interest can be paid on the spot and a letter seeking waiver of penaltyshow cause notice can be. Audit under central excise cera ea2000 how to handle audit. Central excise facility of manufacturing or processing of export goods under claim of rebate of duty paid on inputs under notification no. Since 15 days notice will be given actual audit can take place earliest from 1 st december99.

This manual has been prepared as part of the asian development banks technical assistance project ind. Special audit by nominated cost accountant pertaining. Audit under central excise cera ea2000 how to handle audit ocess of receipt, storage, production and clearances of goods with a view to check whether the assessee is paying the central excise duty correctly and following the central excise procedures. However, in order to find out the purpose of audit, reference is made by me to the manual published. Covering all audits by central excise officers under ea 2000 using new audit manual, standard audit programme and working papers cir. May 02, 2016 the cera audit, in fact, is the examination of the assessees. Jan 30, 2014 power of central excise service tax department to conduct audit under ea 2000 scheme from the outcome of the decision, it may be seen as a professional opportunity by the chartered accountants or cost accountants but there is no respite to the assessee from audit. Regarding excise audit 2000 ea 2000 guidelines circular no. The audit officers are directed to ensure that the audit of these unirs are completed as per the schedule. It is important that the auditor records all of the steps, in working papers, as he goes along. 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. Mar 17, 2017 audit report under vat law ca final may10 video by edupedia world. 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.

Consequent upon issueance of revised frequency norms prescribed for audit of service tax assessee by the director general audit, new delhi vide their letter f. The manual does not deal with legal interpretations and rulings on central excise and service tax matters. Cera central revenue audit cera audits are conducted as a part of audit of government audits and thus, these audits are in no way connected or related to internal audits carried out by excise department. Gathering information about the assessee and the systems followed by him. Audit under ea2000, central excise tax management india. In these rules, unless the context otherwise requires, a act means the central excise act1944 1 of 1944. Ea2000 audit conducted by the departmental officers 2. Determination of price of excisable goods rules 2000 5mcqs vi. Rules framed under section 94 thereof or any of the.

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. This situation is covered us 125 1 e, since matter was subjected to an ea 2000 excise audit and ea 2000 was pending and demand was not quantified and communicated to ms chaturbhuj ltd, so no relief will be available to ms chaturbhuj ltd. The following central excise units are hereby allotted to the following audit groups for the purpose of audit during the remaining period of financial year 200708 1. Checklist for central excise compliance the manual is divided into six parts. In this sense, the cera audit is an audit of efficacy of the central excise department in collecting the duty leviable under the central excise act, 1944. Tiol tax news, gst, income tax, service tax, customs. Caap manual 2009 central board of indirect taxes and customs. Central excise audits practical perspective for assessees. Hi, i received a letter from servicetax gst department about conducting audit in my unit next month. 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 covering all audits by central excise officers under ea 2000 using new audit manual, standard audit programme and working papers instructions regarding.

Revenue audit manual indirect taxes central excise 4. Audit commissionerates have started functioning with powers to conduct integrated audits. Circular clarifying issues in respect of challenges faced by registered persons in implementation of provisions of gst issued click here. Keeping pace with the economic policy most of the procedural controls in central excise law were relaxed with an objective of reducing transaction cost of the manufacturing industry. Service tax no ea 2000 audit by departmental officers. Each part provides explanatory notes and guidance note to facilitate personnel handling compliance. Central excise revenue audit office of director general of. Manual for the scrutiny of central excise returns 2008 1 for departmental circulation only manual for the scrutiny of central excise returns.

Service tax audit cell is functioning headed by the jointaddl. To make central excise audit more professional and result oriented in the wake of introduction of selfassessment and acceptance of. Introduction, information and procedure of excise audit 2000, procedure of excise. I government of india ministry of finance department of revenue central board of excise and customs. Commissionerates undertake audit in terms of ea 2000 audit protocol. Cbec master circularshow cause notice adjudication and. Central board of excise and customs home page of central. This audit is popularly known as ea 2000 with elaborate procedures and instructions on conducting the audit, prescribed in audit manual. As per ea 2000 norms of central excise audits, the following shall be the audit frequency. The process of the audit has been delineated in the central excise audit manual and the service tax audit manual,2 respectively.

Establishment orders central excise, customs and service tax. Central excise manual, chapter15, introduction, procedure of. Since 15 days notice will be given actual audit can take place earliest from 1st december 99. Import export data, export import shipment data from customs. Audit report under vat law ca final may10 video by edupedia world. Cera central excise revenue audit ceta central excise tariff act. Excise audit2000ea2000further guidelines for implementation. Other units will be audited on the basis of the existing audit manual. At present, in addition to audit of such units, those units which pay cash duty of rs. In other words, adherence to the process of audit has a direct bearing on its outcome and efficacy. Jul 21, 2008 last year were facing ea2000 audit from excise commissioner office.

Excise audit scheme ea 2000 further guidelines for implementation. No doubt, audit and antievasion have their roles to play, but assessment or confirmation of assessment should remain the primary responsibility of the central excise officers. Central board of excise and customs cbec is a part of the department of revenue under the ministry of finance, government of india. Power of central excise service tax department to conduct audit under ea 2000 scheme from the outcome of the decision, it may be seen as a professional opportunity by the chartered accountants or cost accountants but there is no respite to the assessee from audit. Cbec master circularshow cause notice adjudication and recovery. Office of the chief commissioner central excise, customs. Auditor means a central excise officer entrusted with the responsibility of conducting an audit.

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