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https://help.tallysolutions.com/docs/te9rel49/Excise_for_Manufacturers/Accounting_Sale_of_Cement.htm

Accounting Sale of Cement

As per the New Duty Rates announced in Budget 2011, manufacturers' of Cement have to calculate Duty on Ad valorem @ 10% + Fixed Rate Per MT.

Facility to calculate Excise Duty on Ad Valorem @ 10% + Fixed Amount per MT on sale of Cement is provided in Tally.ERP 9 Release 3.3.

Example: On 5-4-2011, ABC Company sold 20000 Kg Cement @ Rs. 20 per Kg to Shubh Distributors.

Step 1: Create Stock Item

Go to Gateway of Tally > Inventory Info. > Stock Items > Create

  1. Enter the name of the Stock Item e.g. ACC Cement in the Name field.

  2. Select the Group Name e.g. Primary in the under field.

  3. Select the unit of measurement e.g. Kg (Kilograms)  of the stock item in the Units field

  4. Select the unit of measurement e.g. MT in the Alternate Units field (Use Alt +C to create Unit of Measurement)

  5. Specify 1 MT = 1000 kg in Where field.

Note: Unit and Alternate Unit details provided in the Stock item master are only for the purpose of accounting the Stock items.

  1. In Tariff Classification field select the applicable tariff classification e.g. Cement from the List of Tariff Classifications.

  2. Enable Set/Alter Excise Details to Yes to display the Excise Details sub screen.

  3. In the Excise Details Screen

  4. Excise Unit Name: By default Tally.ERP 9 displays ABC Company as Excise Unit Name.

  • Reporting UOM: select KG as Reporting UOM. All the reports will display the Stock item details based on the reporting UOM selected.

Note: As Per Central Excise Act, in all the reports relating to stock items are required to be indicated with the relevant Unit of Quantity as specified under Central Excise Tariff Act. The Applicable Unit of Quantity for Cement is ‘Kg (Kilograms)’, so it is must to select KG as the Reporting UOM.

 

If user is using Reporting UOM as Metric Tones, then select MT in Reporting UOM field.

  • Set/Alter Duty Details: Set this field to Yes to view the Duty Details screen.

  • In the Duty Details screen:

  • In Valuation Type field select Valorem + Quantum from the List of Valuation Type

  • Select the Basic Excise Duty in the Type of Duty field from the List of  Excise Duty classifications

  • In Applicable From field mention the Date from when the specified Rate of Duty is applicable

  • In Rate of Duty field mention 10% in Valorem percentage and mention the Quantum Value as 0.16

Note:

 

For Cement Quantum Value is on the Metric Tones. For Stock Item ACC Cement we have taken the Reporting UOM as KG, in Quantum Value field we have converted the Quantum Value for KG.

Rs. 160/ 1000 Kgs =0.16.

 

If the User has mentioned the Reporting UOM as MT can directly mention the Fixed Rate Rs. 160 in Quantum Value/per field.

  • Select the Education Cess as the second duty  in the Type of Duty field from the List of  Excise Duty classifications

  • In Applicable From field mention the Date from when the specified Rate of Duty is applicable

  • Specify the Rate of Duty as 2%

  • Select the Secondary Education Cess as the third duty in the Type of Duty field from the List of Excise Duty classifications.

  • In Applicable From field mention the Date from when the specified Rate of Duty is applicable

  • Specify the Rate of Duty as  1%

 

  • In Excise Details screen, under Stock Item Type field select as Finished Goods from the List of Item Types

 

  1. Press Enter to accept and save.

Step 2: Create Excise Duty Ledger to account Ad Valorem Duty

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

  1. Enter the Name of the excise duty ledger you wish to create, for e.g., Basic Excise Duty @ 10%.

  2. Select Duties & Taxes as the group name in the Under field.

  3. Select Excise from the Type of Duty/Tax list in the field Type of Duty/Tax.

  1. In Excise Accounting Code field enter the accounting code of Basic Excise Duty- 00380003.

Note: 8 digit Accounting Code and amount tendered against each type of duty should be mentioned in G.A.R.-7 Challan.

  1. In Duty Head field select Basic Excise Duty from the List of Excise Duty Classification.

  2.  Set the option Inventory values are affected to No.

  3. In percentage of Calculation field enter  10% as the percentage of calculation.

  4. In Method of Calculation field, select On Assessable Value as the method of calculation.

  5. Select Not Applicable in Rounding Method field.

Note: From Rel 4.8 an option to provide Bank Details is provided in the Ledger Master.

 

  1. Press Enter to Accept and save.

Similarly, create Education Cess and Secondary education Cess Ledger. To create Cess ledgers refer,

Step 3: Create Excise Duty Ledger to account Fixed Amount of Duty

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

  1. Enter the Name of the excise duty ledger you wish to create, for e.g., Basic Excise Duty (Fixed Amount).

  2. Select Duties & Taxes as the group name in the Under field.

  3. Select Excise from the Type of Duty/Tax list in the field Type of Duty/Tax.

  1. In Excise Accounting Code field enter the accounting code of Basic Excise Duty- 00380003.

Note: 8 digit Accounting Code and amount tendered against each type of duty should be mentioned in G.A.R.-7 Challan.

  1. In Duty Head field select Basic Excise Duty from the List of Excise Duty Classification.

  2.  Set the option Inventory values are affected to No.

  3. In Percentage of Calculation field enter 1% as the percentage of calculation.

Note: If you leave this field blank/enter Zero in this field, Tally.ERP 9 will not display Method of Calculation field. Hence, specifying Value in this field is mandatory.  

  1. In Method of Calculation field, select On Quantity (Valorem + Quantum) as the method of calculation.

  2. Select Not Applicable in Rounding Method field.

  1. Press Enter to Accept and save.

Step 4: Record Transaction in Excise Sales Voucher

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

  1. In Voucher Type sub form select Excise – Sales as the voucher type.

  2. Ensure that the Sales Voucher is in Item Invoice Mode.

  3. Enter the Date as 5-4-2011.

  4. Enter the Ref details as ABC/1125

  5. In Excise Unit field Tally.ERP 9 displays ABC Company as selected during voucher type creation.

  6. Excise Book Name field displays the name of the excise invoice book (ABC/Rule11/Book1/11-12) created for the Excise Unit.

  7. Serial No. field displays the Rule 11 invoice Number e.g. ABC/1/11-12

  8. In Party A/c Name field select Shubh Distributors from the List of Ledger Accounts.

  9. In Party Details sub form accept the default details

  1. In Nature of Removal field select Domestic from the list of Types of Removals.

  2. Skip the Notification Number field

  3. In Sales Ledger field select the ledger Sales @ 5% from the List of Ledger Accounts.

  4. VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the sales ledger, which can be changed.

  5. In Name of Item field select the Stock Item i.e. ACC Cement

  6. In Quantity field enter the quantity as 20,00

  7. In Rate field enter the rate as Rs. 20 Amount will be calculated automatically.

  8. Select Duty Ledger i.e. Basic Excise Duty @ 10. Amount will be calculated on Assessable Value automatically.

  9. Select Duty Ledger i.e. Basic Excise Duty (Fixed Amount) is calculated based on Rate of Quantity defined in the Stock Item master automatically.

  10. Select Education Cess @ 2% and Secondary Education Cess @ 1% ledgers. Amount will be calculated and displayed automatically.

  11. Select Output VAT @ 5% as the Vat duty ledger. Amount will be calculated and displayed automatically.

  12. Set Show Statutory Details to Yes to view statutory details

Statutory Details screen appears as shown:

  1. In the Bill-wise Details screen accept the default bill allocation

  2. Enter Narration if any

  1. Press Enter to save.

 

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