CA V. Sathyanarayanan

1.  Whether credit claimed on capital goods falls within the definition of Rule 2(a) of Cenvat Credit Rules, 2004 (CCR).

2.  Whether credit claimed on inputs falls within the definition of Rule 2(k) of CCR

3. Whether credit claimed on input services falls within the definition of Rule 2(l) of CCR.

4. Whether credit has been availed of Excise duty on any goods in respect of which the benefit of an exemption under Notification No.1/2011-CE dt.1.3.2011 has been availed, in contravention of proviso (a) to Rule 3(1)(i) of CCR.

5. Whether credit has been availed of Excise duty on any goods specified in serial numbers 67 and 128 in respect of which the benefit of an exemption under Notification No.12/2012-CE dt.17.3.2012 has been availed, in contravention of proviso (b) to Rule 3(1)(i) of CCR.

6. Whether credit has been availed for duty, tax and cess paid as per Rule 3(1) of CCR, 2004 and its Explanation.

7. Whether duty, tax or cess paid on any input or input services used in the manufacture of intermediate products by a job worker availing benefit of exemption specified in Notification of MOF(Dept.of Reveue) No.214/86-CE dt. 25.3.1986.

8.     Whether EOU has taken equivalent amount of central excise duty paid on capital goods, in terms of para 8 of Notification No.22/2003-CE dated 31.03.2003 as per the proviso to Rule 3(1) of CCR.

9.Whether CENVAT credit has been claimed on the duty paid on inputs lying in stock of finished products where the finished goods or service becomes taxable as per Rule 3(2) and 3(h) of CCR.

10. Whether CENVAT credit has been utilized for payment of duty or tax as per Rule 3(4) of CCR, to the extent of CENVAT credit available to the last day of the month or quarter of payment.

11. Whether CENVAT credit has been utilized for payment of excise duty in respect of which the benefit of exemption under notification No.1/2011-CE dt.1.3.2011 is availed, in contravention of the second proviso to Rule 3(4) of CCR.

12. Whether CENVAT credit or input or input services cleared after availing exemption under the notification No.32/1999-CE Dated 08-07-1999, Notification No. 33/1999-CE Dated 8/7/1999, Notification No.39/2001-Central Excise -Dated- 31st July, 2001, 56/2002-CE-Dated-14.11.2002, 57/2002-CE Dated-14.11.2002, 56/2003-CE Dated- 25.06.2003 and 71/2003-CE Dated- 09.09.2003 is utilized only for payment of duty on final products cleared after availing the exemption under these notification.

13. Whether additional duty u/s 3(5) of Customs Tariff Act has been utilized for payment of service tax on output service.

14.  Whether National Calamity Contingent duty payable for cellular telephones or push button type has been utilized for National Calamity Contingent Duty only.

15. Whether Cenvat credit has been used for payment of clean energy cess u/s 83 of Finance Act, 2010.

16. Whether additional duty of excise of final product has only been utilized out of additional duty of excise duty.

17.  Whether service tax paid under RCM has been paid out of Cenvat credit.

18. Whether Cenvat credit on inputs removed from factory or premises of output service, other than for providing output service or warranty, has been paid

19. Whether Cenvat credit on capital goods removed from factory or premises of output service, other than for providing output service or warranty, has been paid.

20. Whether capital goods has been removed after being used whether Cenvat is reversed after reducing percentage points as provided under rule 5A (a) of CCR

21. When the capital goods is cleared as waste or scrap whether duty is levied on transaction value.

22.When provision is created or write off is made for inputs or capital goods  before being put to use whether Cenvat credit is paid.

23.Whether when the input or capital goods is subsequently used whether Cenvat credit is availed as per the proviso to Rule 3 (5B) of CCR.

24.Whether input credit is taken immediately on receipt of the input.

25.Whether, after 1.9.2014, Cenvat credit is taken after 6 months of the date of issue of any documents.

26.Whether CENVAT credit on capital goods is availed only upto 50% and balance in the next year except to the extent stated in Rule 4(1) of CCR.

27.Whether CENVAT credit on capital goods is claimed fully :

a)   where capital goods are cleared in the same financial year

b)   on additional duty levied u/s 3(5) of Customs Tariff Act

c)   on capital goods cleared by eligible units(being > 400 lacs)

28.Whether depreciation u/s 32 is claimed on duty paid on capital assets on which CENVAT credit is claimed.

29.Whether capital goods or inputs sent to job-worker is returned within 180 days

30.Whether service tax paid under RCM has been taken after payment of the service tax.

31.Whethr CENVAT credit taken is reversed if not paid within 3 months.

32.Whether proportionate credit for CENVAT is reversed if the bill is reduced.

33.Whether refund of CENVAT is claimed as per Rule of CCR.

34.Whether refund of service tax under RCM is claimed as per Rule 5B of CCR.

35.Whether CENVAT credit is claimed in accordance with Rule 6(3) of CCR.

36.Whethr a banking company has reversed 5% of CENVAT credit.

37.Whether the input service distributor has distributed CENVAT credit in compliance of the provisions of Rule 7 of CCR.

(Author can be reached at sathyanarayanan@varmaandvarma.com)

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0 responses to “Check List of Compliance of Cenvat Credit Rules, 2004 in Internal Audit”

  1. Pratik Upadhyay says:

    Thanks for sharing

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