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Defining Duty Rates at the Company Level (Excise for Manufacturer)

Excise duty rates can be defined at company level when you deal in only one type of goods having a single duty rate.

ABC Company is a manufacturing unit for packaged drinking water. They sell 20l water cans. Let us see how excise tariff can be defined and applied in a scenario like this.

Note : Dadra & Nagar Haveli and Daman & Diu is listed in State field in Release 6.6.3 and later versions

To define tariff rate at the company level

1. Go to Gateway of Tally > F11: Features > F3: Statutory and Taxation .

2. Set the option Enable Excise to Yes .

3. Set the option Set/ Alter Excise Tariff Details to Yes in the Excise Details screen.

4. Enter the excise details and define the duty rate.

5. Press Enter to save.

6. Press Ctrl+A to save the Excise Registration details.

To enter new tariff details or revised excise rate

1. Go to the Excise Tariff Details screen (shown above).

2. Enter the new excise Rate

3. Press Enter . The Tariff Details Applicability screen appears. Enter the Applicable From date.

4. Press Enter to save and return to Excise Registration Details screen.

You can also click L : Details from the Excise Tariff Details screen, enter the Applicable From date and provide the tariff details with revised excise duty.

Creating Duty Ledger

Create a duty ledger with the Type of Duty as CENVAT and the Duty Head as Basic Excise Duty.

Using the defined duty rate in a transaction

On selecting the duty ledger created in a transaction, the duty rate is calculated as shown in the screen below. Click the image below to go to the step-by-step procedure for recording an excise sales transaction.

ABC Company uses one tariff for all the stock items that they manufacture or deal with. Hence, the same duty ledger can be used for all stock items like Dew Drops Water Packet (500ml), Dew Drops Water Can (20l) and Dew Drops mini (500ml).