Sunday, September 28, 2008

Assessment procedure of central excise duty

Q:- What is assessment of excise duty ? Explain the procedure for assessment of excise duty ?
Ans. Assessment means determination of tax liability . It is the prime duty of manufactures to paid central excise duty when goods produced and cleared from factory or warehouse . It is called self assessment .
In other words ,” central excise rules 2002defines assessment
Self assessment

Under self assessment duty is paid by manufacturer himself . His responsibility is to give the detail of produced goods .

Provisional assessment :-

Provisional assessment is an assessment prior to the final assessment .It is on the request of assessee or order by commissioner.

Steps of self assessment
1st step
Manufacturer ascertain date and time of removal of goods .
2nd step
Fix the rate of different goods
3rd step
Calculate the quantity of goods
4the step
Calculate the value of goods and then calculate the central excise duty.
5th step
Fill the form of E.R.-1 of your monthly return and submit it jurisdictional superintendent within 10 days of succeeding month.
It may also send after three months or quarterly
6th step
1 . two copy of extract PLA ( personal ledger account)
2. Receipted TR-6 Challans
3. suppliers Invoice.
7th step
If the duty is more than 1crores but less than 5 crores or rs. It is the duty of assistant commissioner to check the excise duty before accept it.


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