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

Duty rates can be defined at the ledger level. Based on the requirement of the business, tax configuration can be made either in the ledger master or in the stock item master.

GoIndia is a company that process and supply fuel to fuel stations. They sell petrol and diesel, both branded and unbranded. The duty rates for each one of their stock item is different. They will define the rates of duty in the stock item master level.

Let us see how they record the sale of diesel and unleaded petrol.

Defining Duty Rates in the stock item master

To define the tariff rate at the stock item level

1. Go to Gateway of Tally > Inventory Info. > Stock Item > Create .

2. Enable the option Set/alter excise details in the Ledger creation screen.

3. Press F12: Configure and set the option Enable multi selection of duty details to Yes .

4. Enter tariff details Tariff name , HSN code , and Reporting unit of measure .

5. Enter the excise details as shown in the image below:

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.

Using the defined duty rate in a transaction

On selecting the duty ledgers created in a transaction, the duty rates are 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.

The tax analysis of  this transaction shows that duty has been calculated for each stock item based on the tax configuration made in the stock items.