This annexure
is to be prepared for the Company as a whole and not for factory-wise, product
wise, chapter heading-wise etc. All Products of the company attracting excise
duty/service tax/VAT or any other state taxes is required to be considered for
this annexure.
Figures
under this annexure are to be given for one year only. Since the word “Assessable
value” is applicable under the Excise Act, therefore it is suggested that the
column “Assessable Value should be filled corresponding to excise duty only.
In case of
service tax, cess & others and VAT, gross amount need not be shown, only
the tax amount should be shown under the respective column.
11. Reconciliation of Indirect Taxes (Company as a whole)
Sr.
No
|
Particulars
|
Assessable
Value
|
Excise
Duty
|
Service
Tax
|
Cess
& Others
|
VAT
|
Total
|
1
|
Total Clearances
|
||||||
1(a)
|
Domestic
|
||||||
1(b)
|
Export
|
||||||
1(c)
|
Stock
Transfers (Net)
|
||||||
1(d)
|
Others,
if any
|
||||||
1(e)
|
Total
|
||||||
2
|
Duties / Taxes Payable
|
||||||
3
|
Duties/Taxes Paid
|
||||||
3(a)
|
Cenvat/VAT
Credit Utilised -Inputs
|
||||||
3(b)
|
Cenvat/VAT
Credit Utilised –Capital Goods
|
||||||
3(c)
|
Cenvat/VAT
Credit Utilised –Inputs Services
|
||||||
3(d)
|
Cenvat/VAT
Credit Utilised –Others
|
||||||
3(e)
|
Total
|
||||||
3(f)
|
Paid
through PLA/Cash
|
||||||
3(g)
|
Total/Duties /Taxes Paid
|
||||||
4
|
Duties/Taxes Recovered
|
||||||
5
|
Difference
between Duties / Taxes Paid and Recovered
|
||||||
6
|
Interest
/ Penalty / Fines Paid
|
1.
Total Clearances – The word “clearances”
includes the clearances of goods by way of domestic sales, export sales,
(including SEZ sales), transfer to other units/factories of the same
manufacturer, free supplies, stock transfers to the warehouses, depots or
C&F agents, clearances 100% EOU, clearances of raw materials or capital
goods as such, clearances of used capital goods, clearances of traded goods
etc. where the intermediate products are cleared for outside sale/dispatch as
well as consumed captively by the manufacturer, separate details are required
to be furnished in such cases.
The Word “clearances” also includes the total services
provided domestically and for export purpose, services received as a recipient
of services from the Foreign Services provider, services provided to EOU,
services provided to sister units/concerns situated within /outside India etc.
The value shown here should necessarily be the
assessable value of goods/services.
These clearances can be tallied with Monthly ER-1
Return (Excise), Annual Financial Information Statement in ER-4 (Excise), Half
Yearly ST-3 Return (Service Tax), Monthly/Annual MVAT Returns.
a.
Domestic :- The Value of the domestic clearances from factory
include the clearances for local sale, inter state sale and clearances relating
to captive consumption, clearances of raw material or capital goods as such,
clearances of used capital goods, clearances of traded goods.
The word “domestic clearances” also includes the
services provided to a local service recipient as service provider and
recipient, services provided to a service recipient situated outside the state
as a service provider and recipient and services provided to sister units/concerns
situated within India.
b.
Stock Transfer (Net):- The value of the clearances relating to stock
transfers include the clearances to depots/branches of the unit situated within/outside
the state, transfers to the units/factories of the same manufacturer situated
within/outside the state, stock transfers to the warehouses, depots or C&F
agents etc. situated within/outside the state.
c.
Others, if any: - The clearances of goods and services not falling under any of the
above sub-heads will fall under this head.
d. Total: - It is the sum total of 1(a) + 1(b) + 1(c) + 1(d
2. Total
Duties/Taxes Payable – Excise duty
payable will consist of clearances of goods for local sale, inter state sale,
clearances relating to captive to captive consumption, clearances to
depots/branches, clearances to other units for further use in manufacture of
goods, stock transfers to warehouses & C&F agents, free issues, duty
paid on clearances of inputs/capital goods as such, used capital goods, duty
paid or reversed on account of manufacture of dutiable and exempted goods, duty
paid on export under rebate, etc.
Service tax payable will
consist of the services provided to the service recipient situated within /
outside the state as service provider or service recipient, services provided
to the sister units / concerns situated within / outside India, services received
from the services provider situated outside India as a service recipient, tax
paid or reversed on account of provision of dutiable and exempted services,
etc.
Cess & Others payable
will consist of the various cesses and other taxes leviable under the respective
laws viz. education cess, secondary and higher education cess, other cesses and
taxes, etc; levied by the same state or the other state.
VAT payable will consist of
the value added tax levied and payable within the state for all the clearances
taken place locally i.e. within the state or the intra state sale. This will
specifically exclude the sales or clearances made to other states i.e. outside
the state or inter state sale.
3.
Duties / Taxes Paid – It includes
Cenvat/VAT credit utilized on inputs, capital goods, input services and other
utilization , if any.
a.
Cenvat / VAT Credit Utilised – Inputs: - It refers to utilization of Cenvat credit
or VAT credit on the inputs received in the factory.
The
figure of Cenvat Credit on inputs can be tallied and taken from the Cenvat
register maintained by the company (earlier known as RG23A Pt. II). Further,
the figure of VAT Credit on inputs can be tallied and taken from the VAT
register maintained by the company.
b.
Cenvat/VAT Credit Utilised – Capital Goods: - It refers to the utilization of Cenvat credit or VAT
credit on the capital goods received in the factory.
The figure of Cenvat Credit on capital goods can be
tallied and taken from the Cenvat register maintained by the company (earlier
known as RG23c Pt. II). Further, the figure of VAT Credit on capital goods can
be tallied and taken from the VAT register maintained by the company.
c.
Cenvat/VAT Credit Utilised – Input Services: - It refers to the utilization of Cenvat credit or VAT
credit on the input services availed by the company. The figure of Cenvat
Credit on input services can be tallied and taken from the Cenvat register
maintained by the company (earlier known as RG23c Pt. II).
d.
Cenvat/VAT Credit Utilised- Others: - It refers to the utilization of Cenvat credit or VAT
credit, if any, from the items other than those mentioned above.
e.
Total: -
This refers to the total of Cenvat/VAT Credit utilized on Inputs, Capital
Goods, Input Services and others, if any. It is a sum total of 3(a) + 3(b) +
3(c) + 3(d).
f.
Paid through PLA/Cash :- This refers to the payment of Excise Duty, Service
Tax, Cess& Others and VAT through debit in PLA account or deposit in to the
PLA account or payment to the bank account by way of cheque or cash through the
GAR-7 Challan or the challan for making the payment of VAT.
g.
Total Duties/Taxes Paid:- It will be a sum total of excise duty, service tax,
VAT, Cess & Other taxes paid through PLA / Cash plus utilization of Cenvat
Credit. It is the sum total of 3(e) +3(f).
4.
Duties/Taxes Recovered – It should be taken from Books of Account of the
Company. It is necessary that the gross turnover or the gross billings should
be duly accounted under various heads such as net sales, excise duty, sales
tax, service tax, etc.
5.
Difference between Duties/Taxes Paid and Recovered – This
refer to the amount of total duties/taxes paid and recovered. This may not
match due to the following reasons –
i.
Excise duty
element in stock of excise duty paid goods at depots, branches, and warehouse
or with C&F agents. :- Here , the goods lying at depots, etc are duty paid
goods wherein the goods have not been sold to the customers. Hence, the duty
has not been recovered from the customers.
ii.
Excise duty/sales
tax paid on free issues, samples, where the taxes the taxes are not the
recovered from customers.
iii.
Services provided
by the exporter on payment of service tax.
iv.
Excise duty /sales
tax / Service tax / cess and other payments arising out of Order-in-Original or
Order in Appeal, etc.
The amount of difference should be stated item wise
viz. Excise Duty, Service Tax, Cess & Others and VAT.
It is the difference between 3(g) minus 4
6.
Interest/Penalty/Fines Paid – The
fines, penalties, interest etc are not a payment of Excise Duty, Service Tax,
Cess & Others and VAT. However, sometimes it is paid through PLA or Cash
(Deposit in to the bank account by way of cheque or cash through challan) under
the separate code as specified in the challan. In these circumstances, the
amount should be identified and shown separately. This amount can be tallied
from Monthly ER-1 Returns (Excise), Annual Financial Information Statement in
ER-4 (Excise), Half Yearly ST-3 Return (Service Tax) and Monthly/Annual MVAT
Return.
7.
Summary –
The information required under this annexure will be very useful and help the
companies to reconcile the Indirect Tax Records and the financial books. It
will also help to minimize the litigation under the Indirect tax laws.
The information under this annexure will also be
useful in the case of Valuation Audit under Section 14A and Cenvat Audit under
Section 14AA of the Central Excise Act, 1944.
In case of EA 2000 Audits, CERA Audits, VAT Audits etc.
similar information is invariably asked by the Auditors.
Annexure 11 (Reconciliation of Indirect Taxes) to the
Cost Audit Report represents the information pertaining to various indirect tax
laws for the Company as a whole viz. Excise Duty, Service Tax, Cess &
Others and VAT. Hence, this annexure helps the companies in viewing the total
picture of indirect taxes at a glance.
Sources : Journal “The Management Accountant”
