For a unit rendering excisable services, central excise duty is levied on total amount charged for the services rendered.

There are registers and forms which have been prescribed under the Central Excise Law. The transactions carried out by the unit are recorded on the appropriate forms and registers and forwarded to the concerned circle offices. The activities followed by the units in the existing system are:

Revenue Deposit
Revenue is deposited by the unit through treasury challan in the authorized branches of National Bank of Pakistan and State Bank of Pakistan. The banks prepare pay order and send the same along with two copies of treasury challan (duplicate & triplicate) and Government Credit Scroll to Central Excise & Land Customs (C.E.,L.C.) Treasury. The C.E.,L.C. Treasury deposits the pay order in State Bank of Pakistan. The unit management sends a copy of treasury challan to the concerned circle and updates the Account Current Ledger. The circle staff uses the triplicate copy to compare it with the copy of treasury challan sent by the unit and prepares a revenue reconciliation report. The Directorate of Research and Statistics CBR, Islamabad also receives information from the collectorate and AGPR sub office and prepares a revenue reconciliation report.

Procedure for production Units

Receipt of raw material

Register RG2 is maintained by the unit to record a daily stock account of raw material. Raw material received, issued and losses occurred during production process are logged into this register. A quarterly report of raw material transactions is sent by the unit on form RT3 to the concerned circle office.

Production
A daily production report (DPR) is generated by the unit that shows the shiftwise production. The report is generated daily and if no production is made the report shows nil quantity produced. The RG1 register (register of production, clearance and balance ) is updated by the contents of daily production report.

Goods Removal
An application is prepared by the unit for the removal of goods. Goods are removed against one of the following applications;

a) AR1

AR1 is prepared for removal of excisable goods on payment of duty. The duty levied is adjusted in the Account Current Ledger (ACL) register by a debit entry. The application also depict the ACL position before and after the transaction.

b) AR2

AR2 is prepared for removal of excisable goods from one warehouse to another warehouse or to a factory for the use in specified industrial process. RG9 register is maintained to record details of AR2.

c) AR3

AR3 is prepared for removal of excisable goods for the purpose of export. RG10 register records details of AR3. The Bond register is updated by the unit at the completion of export process.

After lodging the application, a Gate Pass (GPI) is prepared that pertains the details of application against which the goods are being removed. The details of Gate Pass are recorded in RG1 register.

A monthly return of transaction (RT1) is submitted by the unit at the end of each month. The consolidated figures of Daily Production Report, removal of goods against AR1, AR2 or AR3, duty deposited during the month and closing balance of commodities are recorded on RT1 form.

Procedure for Services
A unit providing excisable services maintains Bill of Charges (BC1, BC2, BC3) book. Bill of Charges when generated updates the register RG15. The central excise levied on total amount charged during the month is deposited through treasury challan. A monthly return of excisable services rendered and Bill of Charge books accounted for are reported on Return of Transaction form (RT2).

License Fee Only
A unit rendering excisable services which are not liable to the central excise duty pays the license fee only at the start of the financial year. These units do not maintain the central excise record.
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