Overheads ~ Cost Accounting Standard

Leave a Comment
Overheads 
1. Introduction 

In Cost Accounting the analysis and collection overheads, their allocation and apportionment to different cost centres and absorption to products or services plays an important role in determination of cost well as control purposes. A system of better distribution of overheads can only ensure greater accuracy in determination of cost of products or services. It is, therefore necessary to follow standard practices for allocation; apportionment and absorption of overheads for preparation of cost statements.

2. Object  

2.1 The standard is prescribe the method of collection, allocation, apportionment of overhead and absorption  there of to products an absorption thereof  to products or services on a consistent and uniform basis in the preparation of cost statements and to facilitate inter-firm comparison. 

2.2 The standardization of collection, allocation, apportionment and absorption of overheads is to provide a scientific basis for determination of cost of different activities products, services, assets etc. 

2.3 The standard is to facilitate in taking commercial and strategic management decisions such as resource allocation product mix optimization, make or buy decision, price fixation, etc. 

2.4 The standard aims at ensuring better disclosure requirement and transparency in the cost statement. 

3. Scope 

3.1. The standard should be followed for treatment of overheads by all enterprises including companies covered under Cost Accounting Record Rules issued in pursuant to Sec. 209 (1) (d) of the Companies Act, 1956 or under the provision of any other Act, Rules and Regulations. 

3.2 The standard shall be applied in Cost  and Management Accounting practices relating to 
(a) Cost of products, services or activities 
(b) Valuation of stock
(c) Transfer pricing
(d) Segment  performance 
(e) Excise & Custom duty, VAT, Income Tax, Service Tax  and other levies, duties and abatement fixation 
(f) Cost statements for any other purpose.


4. Definitions

4.1 Overheads --- Overheads comprise of indirect materials, indirect employee costs and indirect expenses which are not direct expenses which are not directly identifiable or allocable to a cost object in a economically feasible way. 

Overheads are to be classified on the basis of functions to which overheads are related (Refer to ‘classification of cost’ – CAS –I) viz 

-- Production overheads 
-- Administrative overheads
-- Selling  overheads
-- Distribution overheads 

Overheads may also be classified on the basis of behaviour such as 

--Variable overheads,
--Semi-variable overheads 
  --Fixed overheads. 

Variable overheads comprise of expenses which vary in proportion to the changes of volume of production. For example, cost of utilities etc. 

Fixed overheads comprise of expenses whose value do not change with the change in volume of production such as salaries, rent etc., 

Semi-variable overhead partly affected by change ion the production volume. They are further segregated into variable overheads and fixed overheads. 

Items not to be treated as overheads:

 Overheads arising out of abnormal situation in business activity (charged to Costing P/L A/c)

Items not related to business activities such as donation, loss / profit on sales of assets etc. are also not be treated as overheads. 

Borrowing cost and other financial charges including foreign exchange fluctuations will not from the part of overheads. 

4.2 Collection of overhead --- Collection  of overheads means the pooling of indirect items of expenses from books of account and supportive / corroborative records in logical groups business regards to their nature and purpose. 

Overheads are collected on the basis of pre-planned groupings, called COST POOLS. Homogeneity, of the cost components in respect of their behaviour and character is to be considered in developing the cost pool. Variable and fixed  overheads should be collected in separate cost  pools under cost centre. A great degree of homogeneity in the cost pools are to be maintained to make the apportionment of overheads more rational and scientific. A cost pool for maintenance expenses will help in apportioning them to different cost centres which use the maintenance service. 

4.3 Allocation of overheads --- allocation of overheads is assigning a whole items of cost directly to a cost centre. 

An items of expenses which can be directly related to a cost centre is to be allocation to the cost centre. For  example , depreciation of a particular machine should be allocated to a particular cost centre if the machine is directly attached to the cost centre. 

4.4 Apportionment of overhead : Apportionment of overheads to more than one cost centre on some equitable  basis. 

When the indirect costs are common to different cost centres. These are to be apportioned to the cost centres on an equitable basis. For example, the expenditure on general  repair and maintenance pertaining to a department but has to be apportioned to various machines (Cost Centres in the department. If the department is involved in the production of a single product. The whole repair & maintenance of the department may be allocated to the product. 

4.5 Primary and Secondary Distribution of Overheads: 

In case of multi-product environment, there are common service cost centres which are providing services to the various production cost centres and other service cost centres. The costs of services are required to be apportioned to the relevant cost centres. 

First step to be followed is to apportion the overheads to different cost centres-- Primary Distribution.

Second step is to apportion the costs of service cost centres to production cost centres on an equitable basis. --Secondary Distribution.

4.6 Absorption of overheads --- Absorption of overheads is charging of overheads from cost centres to products or services by means of absorption rates for each cost center which is calculated as follows: 

                                                                 Total overheads of the cost centre absorption  
Overhead absorption rate   =            ----------------------------------------------
                        Total  quantum  of base 

The base (denominator) is selected on the basis of type of the cost centre and its contribution to the products or services, for example, machine hours, labour hours, quantity produced, etc. 

Overhead absorbed = Overhead absorption rate   units of base in product or service 

4.7 Normal Capacity is the production achieved or achievable on an average over a period or season under normal circumstances taking into  account the loss of capacity resulting from planned maintenance. (CAS -2)

5. Apportionment and absorption of Production Overheads 

5.1 Overheads are to be apportionment to different cost centres based on following 2 principles: 

i) Cause and Effect – Cause is the process or operation or activity and effect is the incurrence of cost. Apportionment of overhead based on this criterion guided by the relationship between cost object and cost. 

ii) Benefits received – overheads are to be apportioned to the various cost centres in proportion to the benefits received by them. 

5.2 Primary Distribution of overheads: 

Basis of primary apportionment of items of production overheads is to be selected to distribute them among  the cost centres following the above two principle as   given 
above in    5.1 

Basis of apportionment must be rational to distribute overheads. Once the base is selected. The same is to be followed consistently and uniformly. However, change in basis for apportionment can be adopted only when it is considered necessary due to change in circumstances like change in technology, degree of mechanization product mix. Etc. In case of such changes, proper disclosure in cost records is essential. 

Examples of basis of primary distribution of some items of production overheads 
--------------------------------------------------------------------------------
Items of  Cost                                           Basis of Apportionment 
--------------------------------------------------------------------------------
Power                                    (H.P rating of Machines X hours  x L.F*) 
Fuel                                               Consumption  rate X  hours 
Jigs, tools & fixtures                                       Machine hours or  Man hours 
Crane hire  charge                             Crane hours or weight of materials handled 
Supervisors salary & fringe benefit                       Number  of employees 
Labour  welfare cost                                                Number of employees 
Rent  &  rates                                                         Floor or Space area 
Insurance                                                         Value of fixed asset
Depreciation                                                 Value of fixed asset
----------------------------------------------------------------------------------

*L.F  = Motor Load  Factor 

5.3 Secondary Distribution of Overheads: 

Secondary distribution of overheads may be done by following either Reciprocal basis or Non-Reciprocal basis. While reciprocal bass considers the exchange of service among the service departments, non-reciprocal basis considers only one directional service flow from a service cost centre to other production cost centres(s).

5.4 Secondary Apportionment of Overheads on Reciprocal Basis. 

The service rendered by certain service cost centres are also by other service cost centres. In reciprocal secondary distribution, the cost of service cost centres are apportioned to production cost centres as well as other service cost centres. In such case, anyone of the following three methods may be followed: 

I. Repeated Distribution Method 

II. Trial  & Error  Method 

III. Simultaneous  Equation Method 

5.4.1. Repeated Distribution Method 

i) The proportion at which the costs of a service cost centres are to be distributed to the production cost centres and other service cost centres are determined. 

ii) Costs of first service cost centres are to be apportioned to production cost centres and service cost centres in the proportion as determined in steps (i). 

iii) Similarly, the cost of other service cost centres are to be apportioned. 

iv) This process as stated in (ii) and (iii)  are to be continued toll the figures remaining un-distributed in the services cost centres are negligibly small. The negligible small amount left with service centre may be distributed to production cost centres. 

5.4.2 Trial and Error Method 

Steps  to be followed under this method are : 

(i) The proportion at which the costs of a service cost centres are to be distributed to production cost centres and other service cost centres are determined. 

(ii) Cost of first service cost centre is distributed to the other service centres in the proportion of service they received from the first as assessed in step (i). 

(iii) In the next step, total cost of second service cost centre so arrived has to be distributed to the other service centres in the proportion of service they received from the second as assessed in step (i). 

(iv) Similarly, the cost of other service cost centres are to be apportioned to the service cost centres. 

(v) This process as described in (iii) and (iv) is to be continued till the figures remaining undistributed in the service cost centres are negligibly small. 

(vi) At the least, total cost of service cost centres to be distribution to production cost centres. 

5.4.3 Simultaneous Equation Method 

The  simultaneous equation method is to be adopted to take care of secondary distribution of  cost of service cost centres to production cost centres with the help of mathematical formulation and solution. Step to be followed : 

i) Proportion of service benefits received by different cost centres from a cost centres are assessed on the basis of records. 

ii) The same rations are used as coefficient in the equations framed for apportionment of cost of service cost centres to production cost centres. 

iii) Solution of the equation gives the cost of service cost centres. 

iv) Cost of service cost centres to be distributed to production cost centres. 

5.5 In non-reciprocal secondary distribution, the costs of service cost centres are apportioned to the production cost centres. Steps involved are: 

i) The cost of first service cost centre is apportioned on a suitable is apportioned on a suitable basis to production cost centres. 

ii) The next steps is to apportion the cost of second service centre to the production cost centres as indicated in stage (i). 

iii) The process is to be continued till the costs of all service cost centres are apportioned. 

5.6 Common bases for absorption of production overheads from, production centres to products or services 

Base of denominator Applicability 

Unit of production When single product is produced or various products 
           are similar in specification. 

Direct labour cost When conversion process is labour intensive and 
                       wage rates are substantially uniform 

Direct labour hour When conversion process is labour intensive 

Machine Hours or Vessel When production mainly depends on performance
Occupancy or Reaction or of the base
Crushing Hours etc. 

5.7 Absorption of Production Overhead and production Capacity 

Overheads shall be analysed into variable overheads and fixed overheads. 

The variable production overheads shall be absorbed to products or services based on actual capacity utilization. 

The fixed production overheads and other similar item of fixed costs such as quality control cost shall be absorption in the production cost on the basis of the normal capacity or actual capacity utilization of the plant whichever is higher. 

In case of less production then normal, under-absorption of overheads shall be adjusted with, Costing Profit & Loss Account. In case of higher production than normal, the over-absorption of overheads shall also be adjusted with Costing Profit & Loss Account. 


5.8 Absorption of Production overheads : 

Production Overheads absorption rate for each cost centre is to be determined with the help of quantum base as indicate in 5.6 above and the formula as indicated below : 



           
                                                                  Fixed overheads
Fixed overheads absorption rate =    ---------------------------------------------------
                                        Normal or actual quantum of base, whichever is higher


                                                                              Variable overheads
Variable overheads absorption rate =     ---------------------------
                                                                               Actual quantum of base 

5.9 A pre-determined rate may be used on a provisional basis for internal management decision making such as cost estimates for quotation, fixation of selling process etc. These rates are to be calculated for each cost centres for a particular period. Budgeted overheads for the respective cost centres for the period concerned are to be taken as numerator and budgeted normal bases for the period as denominator for determining the rate.  

                                                                        Budgeted Overheads for the period
Pre-determined overhead rate =    ------------------------------------------
                                                                     Budgeted normal base for the period 

The amount of total overheads absorbed by a product, service or activity will be the sum total of the overheads absorbed form individual cost centres on pre-determined basis. The difference between overheads absorbed one pre-determined basis and the actual overheads incurred is the under –or over –absorption of overheads. 

The under or over-absorption of overheads is mainly due to variation between the estimation and actual. 

6. Apportionment and absorption of Administrative Overheads 

6.1 Administrative overheads included the following items of cost: 

Printing and stationery, other office supplies
Employees cost – salaries of administrative staff 
Establishment expenses – Office rent  & rates, insurance, depreciation of office building and other assets, legal expenses, audit fees, bank charges, etc. 

6.2 Administrative overheads are to be collected in different costs pools such as :  
--- General Office 
--- Personnel department
--- Accounts department
--- Legal department
--- Secretarial department .etc. 

6.3 Administrative overheads are to be further analysed into two-one for production activities and other for sales and distribution activities. Costs collected under the cost pools indicated in 6.2  above are to be distributed to administrative overheads relating to production activities and administrative overheads relating to selling and distribution activities on rational basis for each cost pool. 

6.4 Administrative overheads relating to production activities are to be apportioned to different production cost centres on the basis conversion costs of production cost centers. The apportioned overheads are absorbed to products on the basis of the normal capacity or actual capacity, whichever is higher. 

In case of under-absorption or over absorption of administrative overhead relating to production, tile same shall also be adjusted with Costing Profit & Loss Account. 

7. Apportionment and absorption of selling overheads and Distribution overheads 

7.1 The selling overheads and distribution overheads are collected under different cost pools such as: 

Selling Overheads: 

(i) Sales  employees cost 
(ii) Rent
(iii) Travelling  expenses
(iv) Warranty  claim
(v) Brokerage  & commission
(vi) Advertisement relating to sales and sales promotion 
(vii) Sales incentive
(viii) Bad debt, etc. 

Distribution  Overheads  : 

(i) Secondary  Packaging
(ii) Freight & Forwarding
(iii) Warehousing  & Storage 
(iv) Insurance, etc. 

7.2 Some items of selling overheads and distribution overheads are directly identified and absorbed to products or services and remaining part of selling and distribution overhead along with the with share of administration overheads relating to selling and distribution activities are to be apportioned to various products or jobs or services on the basis of net actual sales value (i.e. Gross sales value less excise duty, sales tax and other government levies). 

8. Presentation and Disclosure: 

8.1 Once the basis of collection, allocation, apportionment and absorption for different production cost centres are selected, the same shall be followed consistently and uniformly. 

8.2 Change  in basis for collection, allocation apportionment and absorption can be adopted only when it is compelled by the change in circumstances like change in technology, refinement and improvement in the basis, etc. and the scientific approach. In case of such changes, proper disclosure in cost records is essential. 

8.3. Any changes in basis for collection, allocation, apportionment and absorption which has a materials effect on the cost of the product should be disclosed in the cost statements. Where the effect of such changes is not ascertainable wholly or partly, the fact should be indicated in the cost statement. 

Read More...

Checklist for Balance Sheet Finalization

Leave a Comment
Balance Sheet Finalization account checklist 

There are various step to be done and checked before finalize your company or firm account.

Here is important 32 checklist points of the checklist in brief,  which is useful for Balance Sheet process. 




SR.NO.Description
1No Entry On National Holiday.
2Confirmation of Secured Loans.
3Confirmation of Unsecured Loans.
4Confirmation of S.Creditors (Specialy Those With Debit Balance.)
5Confirmation of S.Debtors (Specialy Those With Credit Balance)
6Bonus Sheet To Be Tallied With Bonus Paid In Cash And By Cheque.
7Check Cash For Negative Balance.
8Electricity Charges For 12 Months Entered Or Not.
9Salary Sheet – Tally With Salary Paid In Cash+Cheque. Salary of Employees Who Have Not Signed Salary Sheet Should Reflect As Payable. Tally With Salary Summary For Whole Year.
10Copy of All Full & Final A/C Papers Required.
11Insurance Exp. – Pre-Paid Entries To Be Done. Copy of All Cover Notes To Be Kept In Balance Sheet File.
12Other Pre-Paid Exp. Entries Like Licence Fee, AMC Etc.
13Tally Opening Balance With Last Year Balance Sheet.
14Reconcile Sale + Purchase With Sales Tax Returns.
15Licence Fee – Receipt Or Covering Letters of Licence Copy.
16Tel. Exp. – Bill of 12 Months Entered Or Not. Narration Similar To That of Electricity Exp.
17Depriciation Entries.
18Tally Tds Certificates With Relevant Ledgers.
19Tally Tds Returns With Relevant Ledgers.
20Reconcile All Bank Accounts.
21G.P. Rate Comparison With Last Year.
22Audit Fee To Be Entered.
23Check Cash Exp. Vouchers.
24Check All Debit Notes / Cr. Notes. Should Be Signed
25Check All Cash Receipts. Should Be Signed
26Check All Discounts To Customers Or Short & Excess Or Bad Debts Vouchers. Should Be Signed
27All Heads In Previous Year P&L, Trading Balance Sheet Should Be In Current Year Balance Sheet And Comparasion of Amount To Be Done.
28Challans of All Govt. Dues To Be Enclosed With I.T.R., VAT / CST / ESI / EPF / TDS Etc .
29Exp. Payable Entries : Tel., Electricity, Water Etc .
30Freight Inward For All Central Purchases Should Be Entered.
31Transfer Previous Year Pre-Paid To Relevant Expense Head.
32Check Payment of Previous Year Expenses Payable.

Read More...

Highlights of Companies Act 2013

Leave a Comment
HIGHLIGHTS OF COMPANIES ACT 2013
As per “Companies Act 2013” following provisions required instant action:
1) The Act is organised in 29 chapters, 470 sections & 7 schedules.
2) Substantial part of this act is in the form of Rules.
3) The Act introduced the concept of CEO, CFO and KMP.



4) The Act also introduced concept of one Resident director.
5) Loan taken from shareholders is now treated as deposit.
6) Companies must provide companies details such as Name, CIN, Registered Office Address, Email, Phone no. etc. in its documents Including Letter Heads & Other Stationery.
7)  Digital signature certificate is now mandatory for all person applying for DIN.
8)   Now Book of Accounts may be kept in Electronic Form.
9)  Now any documents & agreements can only be signed by KMP  Or by person authorised by the Board on their behalf.
10) Common seal of organisation is compulsorily required for authentication Of all documents, earlier it was not mandatory.
11) Now Cash Flow will be a part of Financial Statement in all companies.
12) New concepts such as OPC, Small Companies, Registered Valuer, COBetc. are brought forward in this new versatile Act.
13) For conversion of private company into public company requires approval of NCLT, earlier such power was with central government.

MEANING OF “RELATIVE” AS PER COMPANIES ACT 2013
   
  As per New Companies Act 2013, Relative means any person who is related  to another person as if ;     
  1) They are husband and wife  
  2) They are members of a Hindu Undivided family    
One can be related with other in such a manner mentioned below :
  i) Father, here the term father also includes "step father".  
  ii) Mother, here the  term mother includes  "step mother".  
  iii) Son, here the term mother includes "step son"
  iv) Son's wife .  
  v) Daughter .  
  vi) Daughters husband .  


  vii) Brother, here brothere also includes "step brother".
  viii) Sister, here sister also included "step sister ".

Read More...

Adjustment against excess Service Tax Paid

Leave a Comment
Whether the excess payment of service tax can be adjusted against the future liability without any monetary or period limit? For example, whether the excess payment of say Rs. 10 lakhs during the month of March, can be adjusted straightaway against the payment due for April, or in a few installments spread over a few months, say @ Rs. 2 lakhs for 5 months starting April, as the adjustment depends upon arising of the future liability? Sub-rules (4A) and (4B) of rule 6 of the Service Tax Rules, 1994 which are relevant, read as
follows.



“(4A) Notwithstanding anything contained in sub-rule (4), where an assessee has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be, the assessee may adjust such excess amount paid by him against his service tax liability for the succeeding  month or quarter, as the case may be. (4B) The adjustment of excess amount paid, under sub-rule (4A), shall be subject to the following conditions, namely:-
(i) excess amount paid is on account of reasons not involving interpretation of law, taxability, classification, valuation or applicability of any exemption notification, (ii) excess amount paid by an assessee registered under sub-rule (2) of rule 4, on account of delayed receipt of details of payments towards taxable services may be adjusted without monetary limit, (iii) in cases other than specified in clause (ii) above, the excess amount paid may be adjusted with a monetary limit of Rupees one lakh rupees for a relevant month or quarter, as the case may be, (iv) the details and reasons for such adjustment shall be intimated to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such adjustment.” 

As per the above sub-rules, the excess payment made can be adjusted only once with a monetary limit of Rs. 1 lakh. The assessee in the case cited above, will have to file a refund claim for Rs. 9 lakh with the Service Tax Department, as Section 83 of the Finance Act, 1994 reads, “83. Application of certain provisions of Act 1 of 1944 – The provisions of the following section of the Central Excise Act, 1944 (1 of 1944), as in force from time to time, shall apply, so far as may be, in relation to service tax as they apply in relation to a duty of excise: - 9C, 9D, 11B, 11BB, 11C, 12 12A, 12B. 12C, 12D, 12E, 14, [14AA]*, 15, 33A, 35F, 35FF to 35-O (both inclusive), 35Q, 36, 36A, 36B, 37A, 37B, 37C, 37D, [38A]* and 40.”

The reasons for the above statement are as follows. 
Notice the phrase, “succeeding month  or quarter, as the case may be”, in sub-rule 4A, as per which, the excess payment can be adjusted against the service tax liability for the succeeding month or quarter, as the case may be. The phrase ‘as the case may be’ is mentioned because the first proviso to sub-rule (1) of rule 6 of the Service Tax Rules, 1994, qualifies the assessee who is an individual or proprietary firm or partnership firm, to make quarterly payments of service tax; and the others have to pay the service tax on monthly basis. Secondly, clause (iii) of sub-rule (4B) of rule 6 ibid specifies adjustment of excess payment with a monetary limit of Rs. 1 lakh depending upon the category of payment, either on monthly or quarterly basis. 

So, when one reads the two phrases together, ‘succeeding month or quarter’ of sub-rule 4A and ‘Rupees one lakh rupees for a relevant month or quarter’ of sub-rule 4B, one gets the impression that what is envisaged is adjustment of Rs. 1 lakh only for the subsequent   period of payment, either monthly or quarterly, and that too once only. And the other conditions imposed in sub-rule (4B) ibid, the excess amount adjustable is not ‘on account of reasons involving interpretation of law, taxability, classification, valuation or applicability of any exemption notification’. The amounts arising out of the above issues are those pending in disputes in various higher fora, and the deposits made can be adjusted straightaway, without any monetary limit, or in the alternative a refund claim as mentioned above can be sought for from the department. 

Similarly, in the case of the assessees who are registered under the centralized billing or accounting system under sub-rule (2) of rule 4 ibid, there is no monetary limit for adjustment of excess payment of service tax for the subsequent period. Therefore, the excess payment of service tax simpliciter alone, can be adjusted for the next month or quarter of payment, to the extent of Rs. 1 lakh only once, and the balance, if any, should be sought for by way of a refund claim from the department. 

Of course, this adjustment is also qualified with the stipulation of the procedure to intimate the Superintendent concerned within 15 days of such adjustment. Contrast this with sub-rule (3) of rule 6 of the Service Tax Rules, 1994, which reads, “(3) Where an assessee has paid to the credit of Central Government service tax in respect of a taxable service, which is not so provided by him either wholly or partially for any reason, the assessee may adjust the excess service tax so paid by him (calculated on a pro rata basis) against his service tax liability for the subsequent period, if the assessee has refunded the value of taxable service and the service tax thereon to the person from whom it was received.” 

In the above scenario, where an assessee paid service tax in advance, who later on did not provide any service, hence there was no liability on his part to pay the service tax in the first instance, as per the above sub-rule, in case he refunded the service tax to the person from whom he received, can adjust the amount without any restriction on the amount or the period. Notice the words, ‘for the subsequent period’ in the above sub-rule (3) against the words, ‘for the succeeding month or quarter’ of sub-rule (4A)... 

Read More...

List of the Excise Record to be maintained

Leave a Comment
Every assessee is required to maintain certain records and submit returns periodically as prescribed in the various rules. Before these records are brought into use, the assessee is required to give page numbers to the records and get the same counter signed from the Sector officer having jurisdiction over the premises.
General records to be maintained by the assessee.

    1. RG-1 register, i.e. daily stock account of excisable goods;
    2. Form-IV register of receipt and issue of raw material;
    3. Personal Ledger Account;
    4. Invoice book.


Additional record to be maintained by the assessee availing modvat.

    1. RG-23A Pt.-I – entry book of input receipts;
    2. RG-23A Pt.-II – entry book for taking credit of duty paid on inputs;
    3. RG-23C Pt.-I – entry book of capital goods received;
    4. RG-23C Pt.-II - entry book for taking credit of duty paid on capital goods;
    5. Record of inputs sent for job work outside the factory under Rule 57F(4);
    6. Record of inputs received in the factory for job work;
    7. Challan book under Rule 57F(4) for sending inputs or partially processed inputs for job work;
    8. Challan book for sending capital goods for tests, repairs etc. under Rule 57S.

Additional records to be maintained by the manufacturers of.
V.P.sugar
  1. RG-4 – cane account;
  2. RG-6(C) or (G) – register of daily manufacture;
  3. RG-7 - daily drier account;
  4. RG-8 – Sugar store account;
  5. RG-9 – Gunny bag account;
  6. RG-11 – Daily account of sugar received for crushing.
Matches
1. RG-2 – daily account of splints and veneers and composition of match heads;
2. RG-3 – register of stock and receipts of Central Excise Stamps purchased;
Tobacco products
            RG-12 – register of manufacture of excisable tobacco products;
Embroidery
RG-25 – production register cum account current to be maintained by the  manufacturers of embroidery working under special procedure.
Tea
RG-17 – daily account of loose tea utilized in the production of package tea.
Additional records to be maintained by units working under Chapter X procedure.
RG-16 – register of excisable goods used for special industrial purposes.
Additional records to be maintained by independent processors.
1. lot register;
2. register in respect of deemed credit taken under Rule 57A;
Records to be maintained by registered dealers.
RG-23D – record of receipt of duty paid goods and issue thereof;
Invoice book.
Returns to be filed by the assessee.
RT-12 – monthly return for the assessee working under Self Removal Procedure or
RT-3 – monthly return for the assessee working under Physical Control;
In case of units availing small-scale exemption notifications RT-12 return is to be filed on quarterly basis.
RT-5 – Quarterly return of the principle raw material consumed and excisable goods manufactured
Industry specific returns.
1. RT-6 – matches - monthly return of stocks and receipts of band rolls;
2. RT-7(C) or (G) – V.P.Sugar – monthly manufacturing report;
3. RT-8 - V.P.Sugar – monthly manufacturing report;
4. RT-9 – V.P.Sugar – monthly abstract of sugar received for crushing;
5. RT-11 – quarterly return of excisable goods received and used for special industrial purposes under Chapter X procedure;
6. RT-13 – 100% EOUs – monthly return of excisable goods removed from 100% EOUs or unit working under Free Trade Zones or Export Processing Zones on payment of duty in the domestic tariff area;

Returns to be submitted by the Registered dealers.
1. photocopy of relevant pages of the RG-23D register for the month for which return is submitted along with triplicate copies of invoices issued, photocopies of invoices under which duty paid goods received and original copies thereof for defacing and eventual return, are to be submitted.

Read More...

Professional Tax Rates in Maharashtra w.e.f. 1st July 2014

Leave a Comment

Profession tax has given a relief to employees earning up to Rs. 7,500/- p.m.


The new rates as applicable w.e.f. 01/07/2014 are as follows:


Salary/Wages up to Rs.Profession Tax to be Paid (Rs.)
7,500/- per monthNIL
7,500/- to 10,000/- per month175/- per month
Above 10,000/- per month"2,500/- per annum.
(March to January - 200/- per month, February – 300/- per month)"
Read More...