As a measure of economic growth, for inflow of foreign currency and for competitive pricing in international market, Government encourages exports without duty. However, the manufacturer may resort to the provision as per Rule 18 and will charge duty. There are reasons for charging duty i.e. the manufacturer would like to utilise the CENVAT Credit which otherwise would be unutilised and later claim refund. This is called "exporting under Rebate".
To account for Export of Goods under Rebate, use the Nature of Removal Export - Duty Chargeable.
Example: on 2-9-2010, ABC Company exported 20000 Litres of Aqua Sure - 1Ltr at Rs. 25 per Liter to Sys Infotech based in Singapore by paying duty to the Government.
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
Enter the name of the importer in the Name field. E.g. Sys Infotech
Select the group Sundry Debtor 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 Mailing Details enter the supplier contact details
Enable Set/Alter Excise Details to Yes to display the Excise Details sub-screen
In Excise Details screen
In Nature of Removal field select Export - Duty Chargeable
In Notification field enter the notification number under which the goods are exported by paying the duty
Press Enter to save the ledger creation
Go to Gateway of Tally > Accounting Vouchers > F8: Sales
In Voucher Type sub form select Excise – Sales as the voucher type
Ensure that the Sales Voucher is in Item Invoice mode
Enter the Date as 2-9-2010
Enter reference number if any, in the Ref field
In Excise Unit field Tally.ERP 9 displays ABC Company as selected during voucher type creation
Excise Book Name field displays the name of the excise invoice book (ABC/Rule11/Book1/08-09) created for the Excise Unit
Serial No. field displays the Rule 11 invoice Number e.g. ABC/1003
In Party A/c Name field select Sys Infotech from the List of Ledger Accounts
In Party Details sub form, in Sl. No. in PLA/RG 23 field enter the PLA Entry number - 2859 and accept the other default details
In Nature of Removal field select the option Export - Duty Chargeable from the list of Types of Removal
In Notification Number field enter the notification under which the goods are exported. If the Notification number is specified while creating the party ledger application will capture the details from party ledger
In Notification Serial Number field enter the serial number of the notification
In Sales Ledger field select the sales ledger - Export of Goods from the List of Ledger Accounts
In VAT/Tax Class field the VAT/Tax class selected in the purchase ledger will be displayed automatically
In Name of Item field select the Stock Item i.e. AquaSure - 1 Ltr
In Quantity field enter the quantity as 20,000
In Rate field enter the rate as Rs. 25. Amount will be calculated automatically
Select Duty Ledger i.e. Basic Excise Duty @ 16%. to view Excise Duty Allocation screen
In the Excise Duty Allocation screen accept the default details as ABC company is paying the duty on the transaction assessable Value
Note: If the Exporter is paying the duty on the assessable value which is different from the transaction assessable value then user can alter the assessable value. Similarly Duty Rate changes can also be specified in this screen.
Similarly, select Education Cess and Secondary Education Cess ledger. Amount will be calculated and displayed automatically. In Excise Duty Allocation screen accept the Default details
Enter Narration if any
Press Enter to save
Note: (i) The claim of Rebate or Refund of Duty paid on exports can be recorded in Journal Voucher.
(ii) A.R.E. 1 can be generated for transactions recorded using the Nature of Removal Export - Duty Chargeable.
(iii) Manufacturer needs to file A.R.E. 1 for claiming Refund of Duty charged on the Rule 11 Invoice
(iv) To claim refund of duty paid on Inputs, manufacturer needs to file A.R.E. 2.
'Accounting Exports - Duty Chargeable' has been shared with
