Page 248 - MANUAL OF SOP

Verification

(iii) Overall reconciliation of data of Domestic Sales, exports to India and to
countries other than India be done through ERP system of producer/exporter
(SAP, oracle, or any other) wherever it exists.

Note:
• Generally a sample size of 5% for verification of domestic and export
data be considered. However, a smaller sample percentage may be
considered, if number of transactions is very high, Similarly, a higher
percentage may be selected, if number of transactions are very less.

• The basis of choosing sample be month of POI, customer type
(related, unrelated, trader/end-user) grade type, etc. so that sample
is realistic and representative.

• The transaction verification be done for entire Chain beginning
proforma invoice/purchase order to realisation. The deficiencies
noticed in this regard be indicated.
• Genuineness of commercial invoices may also be validated by
correlating them with customs declaration filed by exporter for VAT
refund. As VAT refund is allowed on FOB, the customs declaration
contains Ocean freight and Ocean Insurance as well which could be
correlated with details provided on adjustments.
• Copies of contracts, purchase order and invoices be collected.
• In case the domestic sales are either insignificant or nil or may not
be in ordinary course of trade, sample invoices for exports to third
country (Appendix 3C) and corresponding adjustments may be
verified in detail to ascertain the ex-factory export prices to such
countries,
6. Appendix 1– Capacity, production and sales (Performance Parameters):

(i) Whether the installed capacity, production and sales were verified and the
supporting documents evidencing installed capacity, production and sales
were taken on record?

(ii) Where the same plant produces more than one product and some of them
are N-PUC, the complete details regarding installed capacity and production
may need to be verified.
(iii) Details of deficiencies, if any noticed.

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