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

Sale to 100% EoUs

 

Sales made to EOUs are treated as exports. "EOU" stands for Export Oriented Unit and it is located in the area demarcated by Government for EOUs. These units are engaged in manufacturing activity and intended for exports.  For avoiding duty on the raw materials to be procured from the manufacturers who are in DTA (Domestic Tariff Area), the EOU unit will execute a Bond with its range officer and obtain CT-3 Certificates.  Later this will be issued to manufacturer along with purchase order.  On receipt of CT-3, the manufacturer will record an Excise sales order where he will specify the CT-3 number and date for dispatching the goods as and when it is available with him.

To account sale to EoUs, use the Nature of Removal, Exempt.

Example: On 5-4-2013, ABC Company received an order for 700 nos. of Jute Bags from Jayaram Co., an Export Oriented Unit. On 8-4-2013, ABC Company sold 600 nos. of Jute Bags @ Rs. 16 per nos., to Jayaram Co. sales order and sales invoice need to be recorded for the same.

Step 1: Create the Importer's Ledger

Click here to learn how to create the ledger for Jayaram Co.. Note that the Nature of Removal for the party ledger has to be set to Exempt.

Step 2: Record Sales Order

Go to Gateway of Tally > Order Vouchers  > F5: Excise Sales Order

  1. Enter the Date as 5-4-2013

  2. The Excise Unit field will be pre-filled with the Excise Unit selected while creating the Excise Sales Order voucher

  3. In Party A/c Name field select Jayaram Co. from the List of Ledger Accounts

  4. In the Party Details screen,

  5. select  Nature of Removal as Exempt, and select CT-3 in the Certificate Type.

Note: CT-3 will be issued by the EoU buyer to the manufacturer.

  • Enter CT-3 number and Date

  1. Enter Buyer's Details and Despatch Details as required

  2. In the Voucher entry screen, enter the Order No.

  3. Select the required Sales Ledger

  4. Select the item being sold, that is, Jute Bags

  5. In the Stock Item Allocations screen, enter details of quantity (700 nos.) and rate (Rs. 16). The amount will be calculated automatically

  6. Enable the option Show Statutory Details, if you want to view the duty details

The complete sales order entry is displayed as shown:

  1. Press Enter to save

Step 3: Record Excise Sales Invoice

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

  1. In Voucher Type sub-screen select Excise – Sales

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

  3. Enter the Date as 8-4-2013

  4. Enter reference number, if any, in the Ref field

  5. The Excise Unit field will be pre-filled with the Excise Unit selected while creating the Excise Sales voucher

  6. Excise Book Name field displays the name of the excise invoice book created for the Excise Unit

  7. Serial No. field displays the Rule 11 invoice Number

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

  9. In the Party Details screen, select  Nature of Removal as Exempt, and select CT-3 in the Certificate Type

  1. Enter the required details in other sections of the Party Details screen

  1. The option Nature of Removal in the Voucher Creation screen will be set to Exempt

  1. 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

  2. In Sales Ledger field select the sales ledger Sales - Exempt from the List of Ledger Accounts

  3. The VAT/Tax Class will automatically be set to Sales - Exempt, if the same is configured in the Sales Ledger

  4. In Name of Item field select the Stock Item i.e. Jute Bags

  5. In the Quantity field enter the number of units being exported. That is, 600 nos.

  6. In Rate field enter the rate as Rs. 16. Amount will be calculated automatically

  1. Enable Set/Alter ARE Details. Enter the details as required in the Form ARE Details sub-screen:

  1. Enable the option Show Statutory Details, if you want to view the duty details

  1. Press Enter to accept the screen and return to Voucher Creation screen

The completed entry appears as shown:

  1. Press Enter to save

The ARE-3 No and Date and CT-3 No and Date will be captured in the Rule 11 invoice:

Note: The ARE-3 number and CT-3 number and date of issue of the CT-3 will be captured in Rule 11 invoice.

Printing Form A.R.E. 3

From the Voucher Alteration screen, press Alt+P

The Voucher Printing screen appears:

  1. Set Print ARE-3 to Yes

  2. Enable the other options if required

  3. Fill in the place and date of generating Form A.R.E. 3.

Note: (i) If the goods are dispatched under ‘Self Sealing and Certification’, then the same needs to be certified accordingly. Hence the need to enable the option Show Self-sealing and Certification. Otherwise this option is set to No

       (ii) Incase if the manufacturer would like to mark the ARE-1 with the details as ‘Export under EPCG / Advance License’ scheme then the option Is Clearance under Export Promotion Scheme has to be set to Yes

Form A.R.E. 3 will be printed as shown:

Page 1

Page 2

Pending sales orders can be tracked using their CT-3 numbers, in the CT-3 Outstandings report. This report displays details of quantity pending to be delivered, party wise and CT-3 certificate wise.

 

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