To account sale of goods to "Merchant Exporters", either of the following Natures of Removal can be used:
Export
Export/LUT
Example: On 3-4-2013, ABC Company received an order for 100 nos. of Jute Bags from Karthik Exports a merchant exporter. On 7-4-2013, ABC Company sold 80 nos of Jute Bags at Rs. 260 per nos, to Karthik Exports. A sales order and a sales invoice have to be recorded.
Click here to learn how to create the ledger for Karthik Exports. For this party ledger, the Nature of Removal is set to Export.
Note: A Merchant Exporter need not get himself registered under ‘Central Excise’. And at the same time, he can procure the excisable goods from various manufacturers and ultimately export the goods. To avoid Excise Duty being charged by the manufacturer, the merchant exporter will normally execute a Bond with the concerned authority and obtain CT-1 certificate. Then he will place an order (purchase order) along with CT-1 certificate to the manufacturer. On receipt of the CT-1 Certificate, the manufacturer will clear the goods without charging Excise Duty.
Go to Gateway of Tally > Order Vouchers > F5: Excise Sales Order
Enter the Date as 3-4-2013
The Excise Unit field will be pre-filled with the Excise Unit selected while creating the Excise Sales Order voucher
In Party A/c Name field select Karthik Exports from the List of Ledger Accounts
In the Party Details screen,
select Nature of Removal as Export, and select CT-1 in the Certificate Type
Note: CT-1 will be issued by the merchant exporter to the manufacturer.
Enter CT-1 number and Date
Enter Buyer's Details and Despatch Details as required
In the Voucher entry screen, enter the Order No.
Select the required Sales Ledger
Select the item being sold, that is, Jute Bags
In the Stock Item Allocations screen, enter details of quantity (100 nos.) and rate (Rs. 260). The amount will be calculated automatically.
Enable the option Show Statutory Details, if you want to view the duty details
The complete sales order entry is displayed as shown:
Press Enter to save
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 7-4-2013
Enter reference number, if any, in the Ref field
The Excise Unit field will be pre-filled with the Excise Unit selected while creating the Excise Sales voucher
Excise Book Name field displays the name of the excise invoice book created for the Excise Unit
Serial No. field displays the Rule 11 invoice number
In Party A/c Name field select Karthik Exports from the List of Ledger Accounts
Enter the required details In Party Details sub-screen
Set Nature of Removal to Export
Select Certificate Type as CT-1. Fill in other field under VAT/Excise Details as is necessary
Under Despatch Details, select the Tracking Number for the relevant Delivery Note, if any. Fill in other details as is necessary
Under Order Details, Select the relevant Order Number. The Certificate Number, if entered while raising the Sales Order, will be captured here. Fill the other details as required
Note: Incase the user has not recorded an Excise Sales Order, then while recording an Excise Sales entry, after selecting the Nature of Removal as Export and CT-1 as the Certificate Type, the option New Number needs to be selected for Order No(s), and a provision will be available for specifying CT-1 number and date. These details are captured on Rule 11 Invoice.
Accept the screen
The option Nature of Removal in the Voucher Creation screen will be set to Export
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 Sales Ledger field select the sales ledger Sales - Export from the List of Ledger Accounts
The VAT/Tax Class will automatically be set to Exports, if the same is configured in the Sales Ledger
In Name of Item field select the Stock Item i.e. Jute Bags
In the Quantity field enter the number of units being exported. That is, 80 nos.
In Rate field enter the rate as Rs. 260. Amount will be calculated automatically
Select the relevant Output VAT ledger, if required
Enable Set/Alter ARE Details. Enter the details as required in the Form ARE Details sub-screen:
Enable the option Show Statutory Details to view the duty details
Press Enter to accept the screen and return to Voucher Creation screen
The completed entry appears as shown:
To print Rule 11 Invoice,
In the Voucher Printing screen, set Print ARE-1 to No.
The print preview will appear as shown:
Note: The ARE-1 number and CT-1 number and date of issue of the CT-1 will be captured in Rule 11 invoice.
From the Voucher Alteration screen, press Alt+P
The Voucher Printing screen appears:
Set Print ARE-1 to Yes
Enable the other options if required
Fill in the place and date of generating ARE-1.
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. 1 will be printed as shown:
Page 2
Pending sales orders can be tracked using their CT-1 numbers, in the CT-1 Outstandings report. This report displays details of quantity pending to be delivered, party wise and CT-1 certificate wise.
