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Excise Reconciliation

Shalabh (40 Points)

09 September 2007

what is the significance of excise reconciliation during statutory audit and how it is done , what statements and accounts are required for excise reconciliation

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13 Replies

S Mali (Profession) (40 Points)
Replied 11 September 2007

Please give details of Excise duty for all actions.

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(Guest)

see ouir audit is based on totally external evidences.inthis case we consider er-1 as external evidence.but on account of some entries bal.in books of account not tallied with excise record.e.g-in march we received some input bills for which we booked the excise input duty in books but this may consider in excise record in next financial year. documents verified:-PLA,TR-6,ER-1,RG-23A,RG23C,DSA ETC.

Shalabh (40 Points)
Replied 12 September 2007

thanx for replying

manohar nagula (service) (45 Points)
Replied 29 September 2007

excise reco plays important role in statutory audit to establish the accountability of duty recovered, duty paid, cenvat credit. in inclusive method of accounting excise duty debited to P&L account should reflect in reconciliation. Following facts should be considered while reconciliation: Excise duty recovered from customers, Excise duty paid through PLA, input Cenvat Credit, input service tax credit, duty adjusted for samples, duty adjusted for handling wastage, duty adjusted for free goods, duty adjusted for rejection/return of inputs.

(Guest)

Can U pl tell me about how to do proper Excise duty and Duty Drawback Reconcialition and what documents are required for this and of Packinf Credit as in case of a statutory audit

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(Guest)

Originally posted by :Guest
"	see ouir audit is based on totally external evidences.inthis case we consider er-1 as external evidence.but on account of some entries bal.in books of account not tallied with excise record.e.g-in march we received some input bills for which we booked the excise input duty in books but this may consider in excise record in next financial year. documents verified:-PLA,TR-6,ER-1,RG-23A,RG23C,DSA ETC.	"

(Guest)

Originally posted by :Guest
"	see ouir audit is based on totally external evidences.inthis case we consider er-1 as external evidence.but on account of some entries bal.in books of account not tallied with excise record.e.g-in march we received some input bills for which we booked the excise input duty in books but this may consider in excise record in next financial year. documents verified:-PLA,TR-6,ER-1,RG-23A,RG23C,DSA ETC.	"

Gunjan (finance) (24 Points)
Replied 28 May 2009

Originally posted by :Shalabh
"	what is the significance of excise reconciliation during statutory audit and how it is done , what statements and accounts are required for excise reconciliation	"

Gunjan (finance) (24 Points)
Replied 28 May 2009

please give me a solution , no answaer i got what is this? my question is what is Excise reconcilition???

shriniwas sohoni (officer -Accounts) (23 Points)
Replied 06 October 2009

excise reco in sap

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Vikas Aggarwal (Article Assistant) (42 Points)
Replied 14 January 2011

Originally posted by : Shalabh
	what is the significance of excise reconciliation during statutory audit and how it is done , what statements and accounts are required for excise reconciliation

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 14 January 2011

1) to reconcile the ER-1 of 12 months with a) P/L account i) Sales ii) Duty payable and paid b) credit taken reconcilation with "duplicate copy of excise invoice" , c) duty paid through PLA and respective challans and their entry in P/L account.

2) to reconcile the Stock input with RG23A part 1 ( or any private record for this purpose) , utilization or clearence, and whether appropriate duty is paid or not if cleared as input.

3) to reconcile the Input/partialy processed inputs sent to job worker and return within 180 days or not , if not then duty is debited properly.

4) to reconcile the exports with their respective documents .

in a nutshell the excise reconcillation is done with other documents of the business and statuary returns submitted to other authorities, viz Incometax, Vat and correctness of data of ER-1

in some fields assesee use same bill for manufactured goods and trading goods, audit party ask the assessee to provide reconcillation statements regarding trading goods with their respective purchase doduments, if not provided in order then they enforce that the goods are manufacutured in factory and duty is evaded by showing as trading goods.