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20 Excise For Dealers
20 Excise For Dealers
Lesson Objectives
On completion of this lesson, you will be able to understand
Basic terms related to Excise
Enable Dealer Excise in Tally.ERP 9
Create Masters and Ledgers related to Excise
How to Record Excise transactions for dealers
Generate Excise Invoice as per Rule 11
Generate and Print Excise related Statutory Reports
Excise duty or Duty of Excise is a tax on goods produced or manufactured in India and intended
for consumption in India. The Excise duty is levied at the time of production or manufacturing but
for convenience is collected at the time of removal.
It is an indirect tax on the manufacturer or producer which is passed on to the ultimate consumer.
The levy and collection of duty of Excise is provided under the authority of the Central Excise Act,
1944, at the rates specified under the Central Excise Tariff Act, 1985. The duty is commonly
referred to as the Basic Excise Duty. Certain items like fibre, yarn and so on also attract Additional
Excise Duty under the Additional Duties of Excise (Textiles and Textile Articles) Act, 1975.
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S.No.
Category
Code
1.
XM
2.
Registered Dealers
XD
This is followed by three character numeric codes 001, 002, 003, which denotes the number of
premises registered by the manufacturer or the dealer.
CENVAT Credit
A manufacturer or producer of final products is allowed to take tax credit known as CENVAT credit
on the following payments:
i. Duty of excise specified in the First and Second Schedule to the Excise Tariff Act (ED).
ii. Additional duty of Excise leviable under Additional Duties of Excise (Textile and Textile Articles)
(AED [T and TA]).
iii. Additional duty of Excise leviable under Additional Duties of Excise (Goods of Special Importance) (AED [GSI]).
iv. The National Calamity Contingent duty (NCCD) leviable under Finance Act.
v. Education Cess on excisable goods.
vi. Additional Duty leviable under Customs Tariff Act.
A manufacturer of excisable goods can avail of CENVAT credit for duty paid on the inputs
purchased and utilise the same for the payment of excise on any final product.
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Setup:
Go to Gateway of Tally of Monnet Ispat & Energy Ltd. and press F11: Features (Statutory &
Taxation Features).
Set Enable Dealer Excise to Yes
Set Set/Alter Dealer Excise Details to Yes
The Statutory & Taxation features screen appears as shown
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4. Unit Mailing Name: The Mailing Name entered in the company creation will be displayed as
the Unit Mailing Name. If required, it can be altered.
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Name entered in the Unit Mailing Name will be used in all Excise Reports.
5. Excise Registration (ECC) No.: Enter 15 digits Excise Registration Number (ECC) of the
Company/Unit, e.g. MIEBA3201RXD001
6. Date of Registration: Enter the date of Excise registration, e.g. 01-05-2001
7. Other Details: In this section enter Range, Division and Commissionerate details
Range: Enter the code Name and Address of the range under which your company is registered.
Code: Enter Range Code as 060372
Name: Enter Range Name as Yelanka II
Address: Enter the Range Address
Division: Enter the code Name and Address of the division under which your company is
registered.
Code: Enter Division Code as 0903
Name: Enter Division Name as Division II
Address: Enter the Division Address
Commissionerate: Enter the code Name and Address of the Commissionerate under
which your company is registered.
Code: Enter Commissionerate Code as 06
Name: Enter Commissionerate Name as Bangalore IV
Address: Enter the Commissionerate Address
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Specify the VAT TIN No., Inter-state Sales tax and Companys PAN / Income Tax No
details.
The completed Statutory & Taxation Features screen appears as shown :
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Abbreviate
Use for
Excise
Excise - Purchases
Purchase
Ex-Purc
Yes
Excise - Sales
Sales
Ex-Sale
Yes
Voucher Types
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The completed Excise Sales Voucher Type screen is displayed as shown below:
Under
Maintain balances
bill-by-bill
Excise Details
Sundry Creditors
Yes
Yes
Step 1:
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
1.
2.
3.
4.
5.
Enter the Name of the Supplier in the Name field. E.g. Bhargavan Steels.
Select Sundry Creditors as the group name in the Under field.
Set Maintain Balances Bill by Bill to Yes and enter the Default Credit Period if any.
Set Inventory Values are affected to No
In the Mailing Details and Tax Information section enter the supplier contact details, Income
Tax and the Sales Tax numbers.
6. Enable Set/Alter VAT Details to Yes to display the VAT Details sub screen.
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Ledger
Under
Inventory
values are
affected
Used in
VAT
Returns
VAT/Tax Class
Sales
Accounts
Yes
Yes
Sales @ 4%
Ensure that the completed Sales Excisable Goods ledger appears as shown below:
Under
Inventory values
are affected
Used in VAT
Returns
VAT/Tax Class
Purchases
Excisable Goods
Purchase
Accounts
Yes
Yes
Purchases @ 4%
Under
Type of Duty/Tax
VAT/Tax Class
Inventory
values are
affected
VAT
Input VAT @ 4%
No
Ledger
Input VAT @ 4%
Duties &
Taxes
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Stock
Group
Name
Primary
UOM
Tariff Classification
Set/Alter
Excise
Details
Valuation
Type
Rate Of
VAT
MT
72271000
Yes
Ad Valorem
4%
Set/Alter Duty Details: Set this field to Yes to view the Duty Details screen.
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Qty (Mts)
Rate
Assessable Value
400
500
2,00,000
Excise Duty
@ 16%
Education Cess
@ 2%
VAT @ 4%
Invoice
Amount
32,000
640
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9,318.40
2,42,278.40
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1.
2.
3.
4.
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The Excise Duty, Education Cess and Secondary Education Cess amounts are automatically calculated on the basis of the configuration in the stock item master.
However, in some cases though the excise duty is chargeable at a specified
rate, the net burden on the buyer may be less than such percentage. In
such cases Tally.ERP 9 provides the flexibility to modify the amount of tax.
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14.In the Bill-wise Details screen, specify the Type of Ref as New Ref and type BS/101 in the
Name field.
15. Press Enter to accept the screen.
16.Type the details of the transaction in the Narration field.
The completed Excise -Purchase Invoice is displayed as shown below:
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4. The dealer is required to issue only one invoice per consignment ,if all the packages in the consignment are despatched in one lot. However, in cases where the consignment is despatched
in batches either on the same day or different days or loaded on more than one vehicle, a separate invoice is made for each lot or consignment.
5. Each Cenvat Invoice issued by the location bears a printed serial number, beginning from the
1st of April of the year. The starting serial number as well as formats for recording the excise
can be easily intimated to the commissioner, whose jurisdiction the company falls. An acknowledgement of such an intimation can be obtained.
6. Records and Invoice generated through computer are also recognised. The serial number
likely to be used in the forthcoming quarter should be intimated to the Assistant Commisioner.
A revised intimation is sent when the serial numbers are exhausted.
Quantity
200 MT
Rate
600
VAT
4%
Setup:
Create a ledger Output VAT @ 4%.
Step 1: Create Excise - Sales
Go to Gateway of Tally > Accounting Vouchers > F8: Sales > select Excise - Sales from the
List of Types.
1. Press F2 and change the date to 15-4-09
2. In Ref field, enter the reference number of the transaction
3. The Excise Unit field displays Monnet Ispat & Energy Ltd. as selected during voucher type
creation.
4. Select Jaykanth Engineering in Partys A/c Name and press Enter.
5. Specify the details of the despatch, if any in the Despatch Details screen displayed.
6. The Date and Time of the consignment is displayed in the Excise Details column along with
the buyer Excise details.
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18. Press Enter to accept the Voucher and print the Sales Invoice.
The default sales voucher type can be used for invoicing non-excisable
goods.
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2. Press F12: Configure (Invoice Printing Configuration) and Set the following to Yes.
Print Date and Time
Print Trader Supplier Info
Print Purchase Excise Duty details
Print Purchase Assessable Value
The completed Printing Configuration screen is displayed as shown below:
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This Invoice displays the Excise details of the buyer, seller and manufacturer in accordance with
the Excise rules. It reveals the Item history, including the details of the purchases with their
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respective tariff and duties. This serves as an evidence for the passing of CENVAT Credit to the
subsequent dealer/ manufacturer.
It also specifies the manufacturers name, address and Excise details besides recording the date
and time of the removal of goods from the dealers premises. The Invoice is marked as the First
Stage Dealer, depicting the position of the selling dealer and has to be authenticated by the
authorised signatory in the relevant space provided in the document.
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The Excise Purchase Bill Register of Monnet Ispat & Energy Ltd., is as shown.
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Quantity
Rate
VAT
5 MT
600
4%
Setup :
In the F11: Features (Accounting Features),
Set Use Debit/Credit Notes to Yes
Set Use Invoice mode for Credit Notes to Yes
Set Use Invoice mode for Debit Notes to Yes
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Select BS/101 as the Supplier Invoice No. from the List of Purchases.
Type the returned Quantity as 5 in the Quantity Return column.
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Practice Exercise
1. Jayanth Industries Pvt Ltd., dealing in cold rolled coils, has a bank account in SBI with an
opening balance of Rs. 800000.
Given below are the transactions for the month of May 2009. Create Jayanth Industries Pvt Ltd.
and pass the following transactions:
In the F11: Features (Statutory & Taxation Features), Enable Excise for
Dealers and VAT to Yes.
Create the following Voucher types and select/enter the fields as given in the table:
Name of Voucher
Types
Type of
Voucher
Abbr.
Method of voucher
Numbering
Use for
Dealer Excise
Excise - Purchases
Purchase
Ex - Purc
Automatic
Yes
Excise - Sales
Sales
Ex- sal
Automatic
Yes
Excise-Sales Returns
Credit Note
Ex-C/Note
Automatic
Yes
Create the following Ledgers in the masters and select/ enter the fields as given in the
table:
Name of the Ledger
Under
Maintain balances
bill-by-bill
Excise
Details
Sundry Creditors
Yes
Yes
Ashok Engineers
Sundry Debtors
Yes
Yes
In Excise Details Screen Enter Excise Regn. No., Range, Division, Commissionerate and Select as Manufacturer for Default
Nature of Purchase.
In the Excise Details Screen Enter Excise Regn. No., Range,
Division, Commissionerate and Select the Second Stage Dealer for
Default Nature of Purchase.
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Create the following Ledgers in the masters and select/ enter the fields as given in the
table:
Name of the ledger
Under
Inventory
Values are
affected
Used in
VAT
Returns
VAT/Tax
Class
Purchase
Accounts
Yes
Yes
Purchases @
4%
Sales
Accounts
Yes
Yes
Sales @ 4%
Create the following Ledgers for VAT and enter the fields as given in the table below:
Name Of the ledger
Under
Type of
Duty/Tax
VAT/Tax Class
Inventory
values are
affected
Input VAT @ 4%
Duties &
Taxes
VAT
Input VAT @
4%
No
Output VAT @ 4%
Duties &
Taxes
VAT
Output VAT @
4%
No
Create the following Units of Measure and enter the fields as given in the table below:
Type
Simple
Symbol
MT
Formal Name
Metric Tonnes
Number of
Decimal Places
0
Create the following Stock Items and enter the fields as given in the table below:
Name
Cold Rolled Coils
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Under
Primary
Units
Excise Details
MT
Yes
Quantity (MT)
200
Rate
600
Assessable Value
1,20,000
19,200
Education Cess @ 2%
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Total Amount
1,39,584
VAT @ 4%
5,583.36
Invoice Amount
1,45,167.36
Quantity (MT)
150
Rate
800
VAT
4%
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Quantity (MT)
10
Rate
800
VAT
4%
Points to Remember
Excise duty is tax charged on goods manufactured and consumed
within India.
Goods to be Excisable must satisfy the three basic conditions i.e, it
must be movable, marketable and specified in the Central Excise Tariff
Act.
CENVAT Credit is the set-off of duty paid on inputs used in the manufacture of final products, against the duty liability on such final products.
Only the registered dealers are eligible to pass on or avail as the case
may be the CENVAT Credit.
Tally.ERP 9 permits you to create specific voucher types like ExcisePurchase & Excise-Sales for entering the excise related transactions.
Supplier/ Buyer details can be entered during invoice entry.
Tally.ERP 9 permits you to generate & print both Cenvatable & NonCenvatable Sales Invoice.
A Registered Dealer is required to maintain Statutory Reports like Stock
Register of the cenvatable goods & Quarterly Return of the Excise Duty
paid. Tally.ERP 9 permits you to generate and print these Statutory
Reports.
Tally.ERP 9 also allows you to make adjustments in the records for the
sales return of Cenvatable goods and view its effect in the Statutory
Reports.
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