Table of contents central board of indirect taxes and. New norms are in force from june 2006 and are applicable to all taxable services taxmanagementindia com principles of audit the purpose of ea 2000 audit is to resolve tax non compliance issues and. Selection of units for audit is extremely important as it permits deployment of the existing administrative resources for achieving effective audit results. 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. Ea 2000 audit was therefore held to be participative audit. It is the view that assessment should be the primary function of the central excise officers. Excise audit manual 2008 audit auditors report scribd. The purpose of this manual is to outline the principles and policies of audits conducted under the central excise act, 1944, the finance act, 1994 and the rules made there under. A brief overview of the ea 2000 process of audit is given in the succeeding. 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. Caap manual 2009 home page of central board of excise and.
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 the rigour of the prescribed process. Central excise audits practical perspective for assessees. Service tax audit cell is functioning headed by the jointaddl. Excise audit scheme ea2000further guidelines for implementation it is a directed to say that certain views have been expressed by various commissionerates regarding implementation of the excise audit2000 ea2000. Dear sir, we have received letter for audit of our one firm under audit scheme ea 2000.
Adgaudit right to information central excise, chennai. For the said purpose, the necessary documents were demanded from the petitionersassessees. Consequent upon issueance of revised frequency norms prescribed for audit of service tax assessee by the director generalaudit, new delhi vide their letter f. Selection of assessee and auditing will be as per guidelines in service tax audit manual. Tax and combined central excise and service tax audit commissionerates all. Ea2000 audit conducted by the departmental officers 2. The central excise department on various dates has issued intimation under rule 5a2, to assessees for making a reference to conduct an audit under ea 2000. Excise audit manual 2008 free ebook download as pdf file.
Hence, the broad framework of ea 2000, as currently laid down in ceam 2008, is. Whether any audit needs to be done for excise purpose and if yes, who is. New delhi, and also for the books central excise audit manual and central excise made simple. It was only after the inception of the ea2000, that the auditors started looking into the financial statements of the assessees, which ultimately drew the attention of the senior management, once the revenue.
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. S ravi shankar, ca madhukar n hiregange the book is not only a conventional book on auditing but has approached the subject of excise audit from the legal standpoint apart from procedure and techniques of audit. According to the audit standards laid down in the manual, the audit programme is an outline of all the procedures to be followed by the auditors. Selfassessment on the part of the taxpayer is only a facility and cannot and must not be treated as a. Regarding excise audit 2000 ea 2000 guidelines circular no.
Normally, there are about to 1500 assessees under the jurisdiction of a central excise commissionerate. Audit by controller and auditor general audit by government on department termed as cera central excise receipts audit 3. 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. In order to have a more scientific and effective audit system, by professionally trained officers, an initiative called capacity development of central excise administration has been taken by the board under which introduction of new excise audit system, code named excise audit2000 ea2000 has been evolved. Central excise revenue audit office of director general. Other units will be audited on the basis of the existing audit manual. Table of contents central board of indirect taxes and customs. Central excise manual, chapter15, introduction, procedure of. Import export data, export import shipment data from customs. Eximkey india dgft, customs, excise, export import policy, foreign. Selective audit will be done by jurisdictional central excise officer or by an. The the type of functional areas which can be subject matter of audit in relation to central excise are. Excise audit2000ea2000further guidelines for implementation i am directed to say that certain views have been expressed by various commissionerates regarding implementation of the excise audit2000 ea2000.
Audit under central excise cera ea2000 how to handle audit. Audit under service tax is covered by section 14aa of central excise act 1944 as applicable to. Central excise revenue audit cera is one of the receipt audit wings of office of the principal director of audit central, kolkata. Accordingly, an auditor means, a central excise officer entrusted with the duty of conducting audit. To make central excise audit more professional and result oriented in the wake of introduction of selfassessment and acceptance of. Audit under ea2000, central excise tax management india. Special audits excise duty by central excise department. Now coming to the statutory audit procedure, the purpose of audit, as available in the manual published by the institute of chartered accountants of india in respect of ea audit and cera audit under chapter 17 is that the idea behind such conduct of verification is to reasonably ensure that no amount, which under the central excise law is.
Revenue audits can be seen as participative audits and. First edition of service tax audit manual was prepared and released to field formations in october,2003. Special audit by nominated cost accountant pertaining. Central excise covering all audits by central excise officers under ea 2000 using new audit manual, standard audit programme and working papers instructions regarding. Service tax is an indirect tax administered by central excise department. However, the audits under gst had been put on hold primarily for the reason so that the database of returns including annual return is available for one full accounting period 2. Caap manual 2009 home page of central board of excise. The central excise revenue audit is conducted under the overall supervision of the principal director of audit central, kolkata. Mar 17, 2017 audit report under vat law ca final may10 video by edupedia world. Without the central excise registration return cannot be filed as the.
Guidelines provided herein are intended to ensure that. As per ea2000 norms of central excise audits, the following shall be the audit frequency. Revised version of central excise audit manual and standard audit programme was drafted and launched with the approval of board in september,2003. In that, they can audit last 5 years, where excise part was clear. The initial guidelines are contained in boards circular no. Jul 21, 2008 last year were facing ea2000 audit from excise commissioner office. 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.
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. Audit under central excise cera ea2000 how to handle audit ocess of receipt, storage, production and clearances of goods with a view to check whether the assessee is paying the central excise duty correctly and following the central excise procedures. Audit report under vat law ca final may10 video by edupedia world. Central excise revenue audit office of director general of. He had contributed substantially for revising the icai study material on indirect taxes in 2001. In order to have a more scientific and effective audit system, by professionally trained officers, an initiative called capacity development of central excise administration has been taken by the board under which introduction of new excise audit system, code named excise audit 2000 ea 2000 has been evolved. Trained in auditing of electronic records, the central excise officers who shall conduct computer assisted audit shall use commercial and custom software on secure departmental computers for this purpose. Central excise covering all audits by central excise officers under ea2000 using new audit manual, standard audit programme and working papers instructions regarding. Indian customs notifications dgft notifications service. The departmental audit under caap will involve examination and analysis of business private records that are maintained electronically. Referencer customs central excise service tax caap. The conditions and procedure relating to export without payment of following type of duties are contained in notification nos. With the help of its zonal units, the directorate general of audit regularly monitors central excise and service tax audits conducted by the commissionerates to. The central board for excise and customs cbec visualized the introduction of selfassessment as being complementary to invoicebased assessment, which would in turn facilitate the introduction of central vat cenvat.
Tiol tax news, gst, income tax, service tax, customs. The system of manual audit is not adequate to handle the auditing of such assessees. Service tax no ea 2000 audit by departmental officers. As per ea2000 norms of central excise audits, the following. Central excise notifications circulars public notices. Officers, when posted to the audit commissionerate for the first time, should invariably be sent for training in ea 2000 and financial accounting so that they have. Audit under service tax is covered by section 14aa of central excise act 1944 as applicable to service tax and section 72a inserted by the finance act 2012 w e f 28 5. Audit report cannot be the sole ground for invoking. Ea 2000 audit conducted by the departmental officers 2. Last year were facing ea2000 audit from excise commissioner office. He is also a joint author of many books on central excise and service tax and vat.
A central excise service tax audit cell headed by the jointaddl commissioner, functions under the overall supervision of the commissioner. And telling that this ea 2000 was applicable to dealers also from this year, where turnover is morethan 5 crores. Customs central excise service tax caap referencer. Aug 21, 20 central excise audit a practical perspective.
Hi, i received a letter from servicetax gst department about conducting audit in my unit next month. The audits under ea 2000 hereinafter referred to as the audits protocol although started on an experimental basis in the year 2000 gained prominence over the years and have become one of the most emphatic wings of any excise commissionerate. Guidelines provided herein are intended to ensure that the audits of central excise and service tax assessees and taxpayersare carried out in a uniform, efficient and comprehensive manner, adhering to the stipulated. The central excise officers will not visit the manufacturing unitshopsplace of. It also discharges revenue audit which covers central excise, service tax and customs laws during which time the assesses were examined by cera audit party to point out the deficiencies, leakage of revenue and non recoveries of dues by the central excise department. Division vii the area covered by pin codes 411037, 411041, 411043, 411051 and 411046 of haveli taluka of pune district. It is not possible for the audit staff to conduct audits of all the units every year. Excise audit manual including ea 2000 january 2003 centax publications pvt. Audit audit of the central excise service tax assesses is being conducted as per norms prescribed by the departments audit manual based on ea2000. The central excise officers will not visit the manufacturing unitshops. Central excise manual, chapter15, introduction, procedure. This proforma is based on the ea2000 audit being carried out on the central excise side. Consequent upon issueance of revised frequency norms prescribed for audit of service tax assessee by the director general audit, new delhi vide their letter f. The observation made in the context of central excise but also found to be relevant to service tax is reproduced below.
Excise audit 2000 ea 2000 further guidelines for implementation i am directed to say that certain views have been expressed by various commissionerates regarding implementation of the excise audit 2000 ea 2000. Hence, the broad framework of ea2000, as currently laid down in ceam 2008, is. Commissioner under the overall supervision of the commissioner. It is indeed a great pleasure to provide the gst audit manual 2019, after approval by the board. The computer assisted audit starts with a meeting between the caap auditor and assessees accountingsystems staff. Faq on central excise duty on articles of jewellery ganesh k.
Salient features of excise audit 2000 central excise, chennai. As per the guidelines, frequency norms of audit for service tax assessees tax payers whose annual service tax payment including cash and cenvat was rs. Section,41bi particulars of organization, functions and duties. Here we didnt observe that our sale turnover or purchase turnover or excise turnover. He has helped the authors in authoring different editions of a book on central excise law and procedure, published by centax publications p ltd. It is a fact that central exciseservice tax audit was, till the year 2000, at the nadir of the priority areas of any management. Appeals before cegat application for early hearing reg. Excise audit2000ea2000further guidelines for implementation. 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. By arun jain, superintendent of central excise, ahmedabad. Efforts should be made to have the audit done by teams of officers who are already familiar with ea2000 audit. The cera wing function under the charge of a group officer supported by field inspection parties and head quarter staffs. Central excise instructions relating to adjudication in the central excise manual regarding.