Excise, Service tax - change in amount manually possible?

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  • ssingla
    ssingla Member Posts: 2,973
    You should first find out what needs to be done as per the law. I will narrate the option accordingly.
    CA Sandeep Singla
    http://ssdynamics.co.in
  • Deep
    Deep Member Posts: 569
    ssingla wrote:
    You should first find out what needs to be done as per the law.
    :)
    Thats the only reason why I suggest not to play unnecessarily with Excise & service tax.

    I had seen where people modify these on projects, test them with normal cases without exploring the maximum number of permutations and combinations (without referring to core business people, or the law) and leave.
    Then again the next lot of peoples end up correcting the values manually.
    Regards,

    Deep
    India
  • AMITPATO
    AMITPATO Member Posts: 7
    To the best of my knowledge as per law it depends on the situation.

    Case I
    Excess Excise Credit wrongly received has been utilised. In such a case there is liability of interest and penalty.

    Case II

    Excess Excise Credit wrongly received has not been utilised. In such a case there is no liability of interest and penalty. Just correction entry needs to be passed in books. Same should be explained to department at the time of audit or before that if the question is raised by dept.
    AMIT PATODIA

    MAITHAN ISPAT LIMITED.
  • ssingla
    ssingla Member Posts: 2,973
    AMITPATO wrote:
    To the best of my knowledge as per law it depends on the situation.

    Case I
    Excess Excise Credit wrongly received has been utilised. In such a case there is liability of interest and penalty.

    You need to pass the excise JV to create the liability and then use the PLA deposit to adjust. No need of manual correction.
    AMITPATO wrote:
    Case II

    Excess Excise Credit wrongly received has not been utilised. In such a case there is no liability of interest and penalty. Just correction entry needs to be passed in books. Same should be explained to department at the time of audit or before that if the question is raised by dept.

    You will again pass the excise JV and then use RG 23 A/C to adjust it. Again no need of manual correction.
    CA Sandeep Singla
    http://ssdynamics.co.in

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