In this PPT i just tried to share the basic information of Excise duty reconciliation and for detail you need to check the each act relating to Excise duty.

1. Presented by
Sachin U

2. Excise Duty
 Excise Duty is on Manufactured Goods.
 Central Excise Act,
 Central Excise tariff Act,
 Central Excise Valuation Rules.

3. When we are liable to
pay Excise Duty?
When we remit the
same?
To whom do we Pay?
Does only Company
required to pay Excise
Duty?
How do we come to
know the rate for
particular item to be
charged?
What will be the
consequences if we not
Excise duty pay?

4.  As per the CARO, an auditor is required to report
whether there is any disputed or undisputed dues with
department.
 In the Tax audit report we need to report CENVAT
credit receivable, CENVAT credit utilized and
assessable value for the year is required to be
disclosed.

5. Undisputed Statutory Dues

6. Consider we are in the manufacturing industry, lets
pass the entries for certain transaction.
1. Purchase raw material for 10,000
Purchase a/c Dr 10,000
Cenvat credit receivable a/c Dr 1,250
To S. Creditors a/c 11,250
2. Sale of FG for 15,000
S. Debtor a/c Dr 16,875
To sales a/c 15,000
To Excise duty@12.5% BED a/c 1,875

7. At end of the month we will pass the following entry
3. Excise duty Payable a/c Dr 1,250
To Cenvat Credit Receivable a/c 1,250
4. Excise duty@12.5 BED Dr1,875
To Excise duty Payable a/c 1,875
5. Personal Ledger A/c (PLA) Dr 625
To Bank a/c 625
6. Excise duty Payable a/c Dr 625
To Personal Ledger a/c(PLA) 625

8. Personal Ledger Account
As we suppose to pay government when we remove goods
from the factory, for convenience we credit every payable
to PLA account and once in a month we pay to the
department.
This is the account that we maintain with the department.

9. Disputed dues
Department will send the notice to Assesse and if assesse is not
agreed for the same then there will be a dispute.
We need to disclose the same in the CARO and tax audit report.

10. Tax audit report:
We need to state how much CENVAT credit availed, utilized
and assessable value for the year.
We also need to state if there is any Excise audit conducted by
the department and also any qualification given by them.
Inventory Valuation:
As per AS 2 we need to include excise duty to the closing
stock, why?
As it is a cost to the company we need to include it in the closing
stock.