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Excise audit for dealers

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Dattatri

Tax consultant

61 Points Posted on 02 January 2016

"May your new year brings you success happiness and prosperity"

Happy new year to all Friends

Is there any audit for Dealers registered under Central Excise as Dealers? One of my client has 1.25 crores of Excise duty balance (i have reconciled and compiled a statement from quarterly return (inward-outward)) credit to be passed on but the stock.. is there any consolidated annual statement where in we can get total credit passed on to customers vs credit available for passing on ?

Replies (1)

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 03 January 2016

For regd dealer under central excise no audit is prescribed. However there is a bad practic eof some dealers who issue goods on cash and provide invoices to people who can avil the credit. This could be examined by the DGCEI or preventive wong of the revenue.

As long as consignment wise stocks are amaintianed, it is sufficient.

It maybe noted that there is no credit availment ( no entries in book for credit ) as far as dealers are concerned. They only pass on the credit unlike manufacturers/ service providers.