What is Excise audit 2000?

The new system of audit called the Excise Audit 2000 [EA 2000] was first started in December 1999 on an experimental basis in case of assessees paying duty in PLA over Rs. 5 crore per annum. EA 2000 audit is based on verification of the private records of the assessee and their methods of accounting & record keeping.

What is Central Excise audit?

For Central Excise purposes Audit means scrutiny of the records of assessee and the verification of the actual process of receipt, storage, production and clearance of goods with a view to check whether the assessee is paying the central excise duty correctly and following the central excise procedures.

What is EA 2000 audit tax?

EA –2000 AUDIT (DONE BY DEPARTMENT/ C&AG) Taxpayers with Service Tax payment above Rs. 3 crores (Cash + CENVAT) (MANDATORY UNITS) – to be audited every year. Taxpayers with Service Tax payment between Rs. 1 crore and Rs. 3 crores (Cash + CENVAT) – to be audited once every two years.

What is CERA audit?

Central Excise Revenue Audit (CERA) is one of the receipt audit wings of office of the Principal Director of Audit (Central), Kolkata. Audit of receipt is one of the most important functions assigned to the Comptroller and Auditor General of India (C& AG).

What is central excise law?

Central Excise duty is an indirect tax levied on goods manufactured in India. Central Excise Act defines ‘Manufacture’ by an inclusive definition as any process incidental or ancillary to the completion of a manufactured product.

Who can order valuation audit under section 14 A?

the excise officer
Valuation Audit [section 14A] · Valuation audit can be ordered at any stage of enquiry, investigation or any other proceedings by the excise officer, if he is of the opinion that the value has not been correctly declared or determined by the manufacturer.

Who can order valuation audit under 14A?

excise officer

WHO removes internal auditor?

Explanation: Internal auditor can be removed by the company management; whereas external auditor can be removed by the shareholders of the company.

What qualifications do I need to be an internal auditor?

An entry-level internal auditor position generally requires at least a bachelor’s degree, preferably in a business discipline such as accounting, finance, management, public administration or computer information systems.

Which is a requirement of the EA 2000?

EA 2000 is thus a participative audit. 4.2 A requirement of EA 2000 is that the auditors must be thorough in their knowledge of Central Excise law and procedures, notifications, instructions and circulars issued by the Finance Ministry and the judicial decisions on issues relating to central excise laws.

Which is the audit system under Central Excise?

Hence, the traditional audit was replaced by a new audit system, termed as Excise Audit-2000 (EA-2000). Also all statutory records were abolished and now assesses are allowed to maintain their own records in whichever form they like provided the essential information required for calculation of duty liability can be obtained from such records.

How often are excise units audited in India?

Normally, there are about 1000 to 1500 assessees under the jurisdiction of a Central Excise Commissionerate. It is not possible for the audit staff to conduct audits of all the units every year. Therefore, depending upon the manpower availability, about 300 to 400 units are selected for conducting audit during a financial year.

What is the difference between ea-2000 and Cera audit?

EA-2000 audit is based on the scrutiny of private records of the assessee. This is more systematic wherein the auditors are required to gather basic information about the assessee and analyze them to find out vulnerable areas before conducting the actual audit.