1. if firm only doing trading activity .. then this clause is applicable or not???
2... if firm manufacturing then its apply .. ???
... my one of client firm purchase material and then mix with some material and sale the goods ... (purchase they paid vat but sale item is exempted from vat)
30 December 2010
This clause requires the factual reporting about the amount of CENVAT credit availed of and utilised during the year as well as its treatment in profit and loss account and treatment of outstanding CENVAT credits in the accounts. Accordingly the tax auditor should check relevant statutory records viz. RG-23 (both parts) maintained under the Central Excise Rules 1944 and ascertain therefrom the amount of credit on inputs availed and utilised during the previous year. The tax auditor should vertify that there is a proper reconciliation between balance of CENVAT credit in the accounts and RG-23. The tax auditor should report the amount of CENVAT availed and utilised under this subclause. In a given case CENVAT availed may be lesser than the CENVAT credit utilised during the year on account of opening balance in CENVAT account or vice-versa and as such it would be advisable, in order to avoid any misleading conclusion and inferences, to report the opening and closing balances of CENVAT also.
CAclubindia
