Central excise ea 2000 audit manual for small business

Audit report under vat law ca final may10 video by edupedia world. Excise audit2000 internal audit as conducted by excise department the new system of audit called the excise audit 2000 ea 2000 was first started in december 1999. The central excise officers will not visit the manufacturing unitshopsplace of business residence of the jewellers. The apex body that is responsible for the policy and formulation of connected rules is the central board of excise and customs which functions under. Customs central excise service tax caap referencer. 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. 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. This erstwhile collectorate was having wide jurisdiction of entire erstwhile state of uttar pradesh.

Displaying categorized search results for central excise manual advance search news. Special audits excise duty by central excise department. Integrated central excise and service tax audit manual 2015. The conditions and procedure relating to export without payment of following type of duties are contained in notification nos. 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. Central excise instructions relating to adjudication in the central excise manual regarding. 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. By using caap, the auditor analysis the business system of the assessee. Selection of assessees shall be based on risk score and procedure for using it shall be as per dg audit vide letter f. A brief overview of the ea 2000 process of audit is given in the succeeding. Guidelines provided herein are intended to ensure that the audits of central excise and service tax assessees and taxpayers. Tiol tax news, gst, income tax, service tax, customs. Central excise practice manual tax management india. 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.

Remaining services that include categories of services such as business. Selection of units for audit is extremely important as it permits deployment of the existing administrative resources for achieving effective audit results. Regarding excise audit 2000 ea 2000 guidelines circular no. A brief note explaining the methodology adopted for ea 2000 audits and the steps. 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. Such small jewellers will be eligible for exemption upto rs. Manual for the scrutiny of central excise returns 2008 7 chapter 1. Office of the chief commissioner central excise, customs. Audit ea2000 amended as ea2008 2728 9 modes of payment of duty 16 17 antievasion activities 28. To make central excise audit more professional and result oriented in the wake of introduction of selfassessment and acceptance of. Departmental circular nor a manual of instructions issued by the central board of. 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. Guidelines provided herein are intended to ensure that the audits of central excise and service tax assessees and taxpayers are carried out in. The the type of functional areas which can be subject matter of audit in relation to central excise are.

Central excise manual, chapter15, introduction, procedure of. Ensuring that the ez 2000 methodology is observed in conducting audits and the provisions of the central excise audit manual as well as the. 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. Central excise revenue audit cera is one of the receipt audit wings of office of the principal director of audit central, kolkata. For the first time, key business processes were identified and small working groups set up to examine each business process and suggest qualitative improvements to enhance revenue efficiency and ensure taxpayer. Hence, the broad framework of ea 2000, as currently laid down in ceam 2008, is. Central excise audits practical perspective for assessees. Each company should conduct self audit of their excise operations for various purposes. Central excise revenue audit office of director general. After the risk assessment project and caap are complete, the complete new audit package will be operational sometime early 2000 2001. Central excise notifications circulars public notices. 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. Based on the reply sent by the department, they can be divided in following categories. In that, they can audit last 5 years, where excise part was clear.

At present, in addition to audit of such units, those units which pay cash duty of rs. Central board of excise and customs cbec is a part of the department of revenue under the ministry of finance, government of india. 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. It is not possible for the audit staff to conduct audits of all the units every year. On his part, the assessee is given full opportunity to explain his stand on any particular matter so that matters are resolved in full appreciation of legal position.

Normally, there are about to 1500 assessees under the jurisdiction of a central excise commissionerate. Central excise manual, chapter15, introduction, procedure. With effect from 01012002, the cbec instructed that henceforth all audits would be conducted under ea 2000 system and the traditional system of audit was phased out. 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. Monitoring committee meeting mcm for the month of january, 2020 is scheduled to be held on 07. May 2010 multistate tax commission 444 north capitol street, n. Once an lar or sof is received, it should be replied by the department forthwith. 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. Central excise covering all audits by central excise officers under ea2000 using new audit manual, standard audit programme and working papers instructions regarding. The departmental audit under caap will involve examination and analysis of business private records that are maintained electronically. Other units will be audited on the basis of the existing audit manual. Each part provides explanatory notes and guidance note to facilitate personnel handling compliance.

Cbec says excise audits will continue times of india. 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. For indirect taxes, comprising central excise, service tax and customs, an audit is the only mechanism available to the government to. Ea2000 audit conducted by the departmental officers 2. Audit objections where department has agreed to the. Please select, small tax payers unit in service tax small tax. The central excise and service tax audit manual issues with the approval of the board. Rule 101 of the central goods and service tax rules, 2017. Last year were facing ea2000 audit from excise commissioner office.

Audit under central excise cera ea2000 how to handle audit. The cera audit, in fact, is the examination of the assessees. Thereafter, the steps are the same as those in ea 2000 audits. Special audit by nominated cost accountant pertaining. It is indeed my proud privilege to launch this website of central excise audit commissionerate, jaipur, more particularly in the. Audit by controller and auditor general audit by government on department termed as cera central excise receipts audit 3. And telling that this ea 2000 was applicable to dealers also from this year, where turnover is morethan 5 crores.

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. Hi, i received a letter from servicetax gst department about conducting audit in my unit next month. Service tax no ea 2000 audit by departmental officers. In order to form an opinion about how effectively the prescribed procedures are. Introduction, information and procedure of excise audit 2000, procedure of. In kolkata audit ii commissionerate, in case of ms young india. Cbecrevised procedures to deal with cag revenue audit. Every assessee, and first stage and second stage dealer shall, on demand make available to the officer empowered under subrule 1 or the audit party deputed by the commissioner or the comptroller and auditor general of india, or a cost accountant or chartered accountant nominated under section 14 a or section 14 aa of the act the records as specified under rule 22 of central excise rules, 2002.

Here we didnt observe that our sale turnover or purchase turnover or excise turnover. Hence, the broad framework of ea2000, as currently laid down in ceam 2008, is. 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. The system of manual audit is not adequate to handle the auditing of such assessees. Mandatory detailed scrutiny of minimum 2% to a maximum of 5% of returns received within a monthto be conducted following prescribed scrutiny procedures. Central board of excise and customs home page of central. 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. Small taxpayers 2 to 4 working days including audit of the. The central excise department spread over the entire country administers and collects the central excise duty.