Query on Excise

First there is no provision in DVAT for theft or pilferage but surely excise authorities will ask to pay duty on differential amount and second thing why did he claimed CENVAT Credit on total qty if that much is not removed and filed incorrect return in CCR 2004.

Dear Sir,
I am working as an accountant. Working in a Co. which import from Japan and sells across India as a Dealer, Manufacturer. We have license for Manufacturer as well as Dealer also.
My Question is the following Ledger A/C will go under which Account Heads
(I)Purchase Transactions - Common for all types of invoices:
1.Excise/CVD Duty(Educ + H.S. Cess) paid to Customs
2.Cusotms Duty (incl of all cess)
3.SACD (Special Additional Customs Duty @ 4%)
4.Goods Price (cost of material imported- Purchase price X Qnty.)
5.Freight + Insurance (on FOB basis)
6.Customs Clearing Charges

(II) Sale Transactions : Dealer/CVD Invoice
(A).Sales Price includes following
1.  Sale (Qnty x Sale Price)
2.+ CVD (as above) passed on to customers
3.+ SACD (as above) passed on to customers
4.+ Sales Tax (CST/MVAT as the case may be)

(III) Sale Transactions : Excise Invoice
1.  Sale value (Qnty x Sale Price)
2.+ Excise Duty payable (on Sale price i.e. 1.)
3.+ Sales Tax (CST/MVAT as the case may be)
(IV) Sale Transactions : Commercial Invoice
1.  Sale value (Qnty x Sale Price)
2. +Sales Tax payable CST/MVAT as the case may be)

Please tell that afore said ledger a/c will go under which account heads e.g. CST under C.L.-B/S.
Also suggest if there need to open few more accounts to settle the above accounts e.g. Whatever we paid towards CVD & SACD we pass on to our cutomer via Dealer invoices, & to the extent not passed on where this amt will reflect.

I hope you realise my doubt.

Adjustment of these accounts has troubled me ?
Please help me sir in this context.

Originally posted by : Nitin Sonawane
	Dear Sir, I am working as an accountant. Working in a Co. which import from Japan and sells across India as a Dealer, Manufacturer. We have license for Manufacturer as well as Dealer also. - as per your statement you have excise registration for manufacturing and dealership both, so u must follow the rules and aware that trading goods and manufacturing input cant be stored and accounted in same manner and place.  My Question is the following Ledger A/C will go under which Account Heads (I)Purchase Transactions - Common for all types of invoices: 1.Excise/CVD Duty(Educ + H.S. Cess) paid to Customs 2.Cusotms Duty (incl of all cess) 3.SACD (Special Additional Customs Duty @ 4%) 4.Goods Price (cost of material imported- Purchase price X Qnty.) 5.Freight + Insurance (on FOB basis) 6.Customs Clearing Charges (II) Sale Transactions : Dealer/CVD Invoice (A).Sales Price includes following 1.  Sale (Qnty x Sale Price) 2.+ CVD (as above) passed on to customers 3.+ SACD (as above) passed on to customers 4.+ Sales Tax (CST/MVAT as the case may be) - CVD /SACD is mere pass on of credit to manufacturer buyer, u have nothing to do in it, by issue of dealers invoice u have to pass on the duty to next stage, your sales price is inclusive of all charges upto your receipt stage.+ your margin too. (III) Sale Transactions : Excise Invoice 1.  Sale value (Qnty x Sale Price) 2.+ Excise Duty payable (on Sale price i.e. 1.) 3.+ Sales Tax (CST/MVAT as the case may be) - Here you are eligible to take credit of CVD / SACD from the zero level of clearence (cenvat credit) and utilize the same towards the discharge of duty on clearence. (IV) Sale Transactions : Commercial Invoice 1.  Sale value (Qnty x Sale Price) 2. +Sales Tax payable CST/MVAT as the case may be) - its ok  Please tell that afore said ledger a/c will go under which account heads e.g. CST under C.L.-B/S. Also suggest if there need to open few more accounts to settle the above accounts e.g. Whatever we paid towards CVD & SACD we pass on to our cutomer via Dealer invoices, & to the extent not passed on where this amt will reflect. I hope you realise my doubt. Adjustment of these accounts has troubled me ? Please help me sir in this context.

1) you can not take single import bill under dealer and manufacture both , u have to maintain import bill wise lots for trading / manufacture , 

a) for trading goods u have to make entries in RG23D and issue dealer invoice in case the buyer has excise registration, otherwise u have to sell the goods without dealers invoice, on the strength of commercial invoice only. Dear has no choice to set off or adjust the duty part, but they have to issue invoice for pass on of duty only. Your commercial invoice would be same for both i.e buyers with excise invoice / wihout excise invoice. your sale price would be inclusive of all taxes of duties except MVAT/CST

b) for goods taken in manufacture, you have to take input credit of cvd/sacd in RG23A-Part2 and with inputs quantity entry in RG23A-Part1, during the course of manufacture u have to maintain RG23A-part-1 for release of quantity for process and on completion you have to enter the quantity finished in DSA ( RG-1) alsongwith scrap entry if any, on sale from manufacturing yard u have to discharge duty u/s 4 at factory gate, and issue invoice by making entries in DSA. your commercial invoice would contain (assesssable value +cenvat+E Cess+S&HSC) + MVAT/CST

2) Reg CST,/ MVAT its independent entry, and paid in cash generally discussing the same in next post.  

for dealers accounting 

Purchase Transactions - Common for all types of invoices:

1.Excise/CVD Duty(Educ + H.S. Cess) paid to Customs ............................10

2.Cusotms Duty (incl of all cess) ...............................................................40

3.SACD (Special Additional Customs Duty @ 4%)........................................4

4.Goods Price (cost of material imported- Purchase price X Qnty.)............100

5.Freight + Insurance (on FOB basis).......................................................4 

6.Customs Clearing Charges .....................................................................2

total .............................................................................................................................................. 160

Entires 

Purchase (import) dr ....................................160

to suppliers  a/c cr ......................................................100

CVD..................................................................................10

Customs ........................................................................40

SACD ................................................................................4

freight / insurence ..........................................................4

C&F charges ..................................................................2

...............................................................................................

...................................................................160............160

Sales Entry 

Buyer A/c Dr ..............................................................210

to CST / MVAT .............................................................................10

to Sales a/c ..............................................................................200

...........................................................................................................

....................................................................................210.........210

Excise invoice is only pass on of duty for only buyers who hold excise registration. .

for Manufacturing accounting

Purchase Transactions - Common for all types of invoices:

1.Excise/CVD Duty(Educ + H.S. Cess) paid to Customs ............................10

2.Cusotms Duty (incl of all cess) ...............................................................40

3.SACD (Special Additional Customs Duty @ 4%)........................................4

4.Goods Price (cost of material imported- Purchase price X Qnty.)............100

5.Freight + Insurance (on FOB basis).......................................................4 

6.Customs Clearing Charges .....................................................................2

total ............................................................................................................... 160

Purchase a/c dr .................................................. 146

cenvat credit a/c dr ...............................................14

to suppliers a/c cr .........................................................100

cvd .................................................................................10

customs ..........................................................................40

sacd .................................................................................4

insrence / freight .............................................................4

C&F charges ....................................................................2

______________________________________________

.......................................................................160,,,,,,160

Sales entry 

Buyers a/c Dr ..................................................213.40

to mfg sales ...............................................................180

Cenvat ( Excise )...........................................................18

E Cess ( E cess + S&HEC)................................................5.40

MVAT/ CST .....................on mfg sales+Ex+Cess)..........10

________________________________________________

........................................................................213.40..213.40

How can the principal insure himself against theft from job worker in such cases?

Is insurance of goods against theft possible for goods at jobworker premises?