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Dear All Internal Auditor,

Audit Check List is must for Audit. Through Only You can Know What Left and What Done.

Input credit (Cenvat Credit):-

1. Cenvat Credit refers to availing (taking) credit of excise duty charged on inputs or capital goods by a manufacturer or a dealer (1st or 2nd stage dealer) in his sale invoices.

2. Cenvat Credit also refers to availing(taking) credit of service tax charged on input services by the service provider

Below table shows the on what duty and to what extent Cenvat credit can be claimed

S.No.

Type of duty

Criteria

Maximum of  duty

Remarks

1.

Excise duty on inputs

1. Inputs must be received in the factory.

2. Inputs to be used for the purpose of manufacture of excisable finished product.

Total excise duty on inputs can be claimed as cenvat credit.

(Refer note 1)

2.

Excise duty on capital

1. Capital goods should be received in the factory and it must be used within the factory.

Upto 50% of excise duty can claimed as cenvat credit in the year of receipt of such capital goods.

Note: - Balance amount can be claim as cenvat credit in the subsequent financial year.

1. Any capital goods which are used within the office, then excise duty paid on such capital goods are not eligible for cenvat credit .

3.

Service Tax on input services

1. Input services used for the purpose of manufacturing excisable finished product.

Total service tax on input services can be claimed as cenvat credit.

Nil

Note-1

It must be noted that following items are not considered as input accordingly excise duty paid on such inputs cannot be claimed as cenvat credit.-

a)  Light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol

b) Any goods used for —

i) Construction of a building or a civil structure or a part thereof or

ii)  Laying of foundation or making of structures for support of capital goods.

Statutory Dues (Statutory payments includes TDS, Service Tax, Excise duty,VAT etc.):

1. List out what are all the statutory payments the company is liable, then confirm whether the same has been paid within the time limit.

The below indicated due dates for both payment of duty.

Due date for Payment

S.No.

Type of duty

Time limit for deposit

Remarks

1.

Tax Deducted at source(TDS)

(Monthly Payment)

By 7th of the month in which payment/credit is made.

1. If amount is paid/credited on 31st March in such case amount to deposited, within 2 months from the month in which payment/credit is made.

2.Delay in case of late deposit

Situation

ROI ( per month or part of the month)

Deducted but not deposited

1.5 %

Not deducted and not deposited

1.00%

2.

Excise Duty

(Monthly Payment)

Due Date

Paid through Online

In any other case

6th of the following month

5th of the following month

1. In case goods removed in the month of March, it shall be paid by 31st March. 

2. Delay in payment of Excise Duty will attracts interest @ 18% per annum

3.

Service Tax

(Monthly Payment)

Due Date

Paid through Online

In any other case

6th of the following month

5th of the following month

1. Delay in payment of Excise Duty will attracts interest @ 18% per annum

4.

Value Added Tax (VAT)

(Monthly payment)

AP-VAT

20th of the following month.

1.Delay in payment of Excise Duty will attracts interest @ 10% per annum

6.

Provident Fund (PF)

(Monthly Payment)

21st of the following Month.

(including grace period 5 days )

Period of default

Rate of damages(per annum)

< 2 Months

17

≥2<4

22

≥4<6

27

≥6

37

 

Notes:

1. Where any amount credited/paid without deducting TDS ,in such case the assessee is not eligible to claim such amount as expenditure while computation of income tax, however the same will be allowed as expenditure if the same has been deducted and deposited within the due date of filing the return(i.e.30.09.2012)

2. In case where the client is paying service tax under reverse charge method, the same has to be paid without utilizing cenvat credit, however whatever paid the same can be claimed as cenvat credit

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