Excise audit queries

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Anuj Verma (Querist)

02 July 2013 R/All,

We were working as proprietorship firm from year 2004 and same has been converted in pvt. ltd. concern from july 2011. All assets and liabilities of prop. Firm has been taking over by pvt. ltd. concern.

As we are in process of excise audit, auditor have raise following queries-

01 Some of our suppliers have raised invoice in the name of prop. Concern in the month of Oct. and Nov. 11. We have availed CENVET credit of same bill. Do it will be disallowed.

02 Excise auditors are asking for bill of Commission paid, we have paid commission
to individuals and deduct TDS on the same. Individuals do not have service tax registration and did not provide bills for commission. We have deducted tax and deposit and provide PAN nos. of individuals to ITD in our audit report. Can it be disallowed and do Excise auditors are concerned in this regard.

03 Credit of service tax has been utilized as CENVET input. It is allowed or not.

Kindly suggest ASAP as excise audit is in progress and auditors are creating presser on account dept. by asking for documents, related to Income tax only.

Regards

Anuj Verma

Arun Kumar Singh

Arun Kumar Singh (Expert)

03 July 2013 1. you can take the cenvat credit even if bill raised in the name of prop.
2. It is not your responsibility that service providers are paying service tax or not. If you are paying commission in foreign then you need to pay service tax under reverse charge system.
3. If input service are used in the manufacturing process then cenvat credit can not be dis allowed.

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