Venkatesan M (Sr Analyst) (25 Points)
03 June 2011Team,
Can you provide the rounding off methodology approved by authorities for Excise duty (nearest one,ten, not allowed), Cess 1% , Cess 2% and VAT. Pls provide with section / notification / case law reference to know more details.
Assume the ED can be rounded off to nearest 1, then the cess of 1% or 3% should be calculated on the rounded off ED or the actual ED???
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 03 June 2011
Rounding off is the method to absorb the fraction figures appearing on bank / tax documents for banking / departmental ease.
against any liability of excise duty, edu cess, secondary and higher secondary edu cess, ( of assessable value)
10% + 2% of 10% or 0.02% + 1% of 10% or 0.01%
we do calculate total liability of the month or period for payment and then round off the same in nearest rupee .......for ease of accounting.
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 03 June 2011
I agree with mr sharma. Instead of rounding off in all the central excise invoices, we can round off at the time of remitting the duty, cess or hr edu cess like VAT remittance. Above 50 paise can be rounded off to one rupee.
This is acceptable
rengaraj r.k
Venkatesan M
(Sr Analyst)
(25 Points)
Replied 03 June 2011
Thanks Mr Sharma & Rengaraj -
Does the ED, Cess & VAT should match with the supplier invoice when I create the liability in my payables system.
BTW - Pls provide the reference if any.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 03 June 2011
at the time of sales, such duties and taxes are "paid" from asset account of Excise and VAT, and end of month the shortfall is remitted by cash or by epayment.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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