The Excise duty on purchases may be accounted in two ways i.e., Exclusive or Inclusive method.
Under Exclusive method, Excise Duty, Education Cess, Higher Education Cess & other duties of excise ledgers are created and itemised separately in the Purchase Invoice and as a result the excise amount paid is available separately in the respective ledgers.
Under Inclusive method the value of Excise Duty and other cess amount debited to Purchase Accounts i.e., apportioned to the Purchase Cost. The applicable Duties of Excise and Cess are calculated in the Excise Details sub screen based on rate of duty pre-defined in the stock item master.
In most of the cases Excise Dealers will follow Inclusive method. But there are dealers who will follow Exclusive method where separate duty ledgers are created to account the duty charged and while making sales same ledgers are selected to pass on the duty to the dealers.
In Tally.ERP 9 users can also record the excise purchases in Exclusive method.
Example: On 4-1-2011, ABC Company Purchased 1000 kgs of Hot Rolled Coils from Sterling Steel Industries @ 500per Kg
Duty paid on this purchase is
*Basic Excise Duty @ 10% - 50000
*Education Cess @ 2% - 1000
*Secondary Education Cess @ 1% - 500
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
In Name field enter duty ledger name E.g. Basic Excise Duty @ 10%
Group the duty ledger under Duties & Taxes
In Type of Duty/Tax field select Excise
In Excise Accounting Code field specify the accounting code of basic excise duty.
Note: Excise Accounting Code is not mandatory as this code is not printed in invoice or the excise reports.
In Duty Head field select Excise Duty
In Percentage of Calculation specify the rate of duty charged on the excise stock
In Method of Calculation select Type of Duty - On Total Sales
Press Enter to save.
In Name field enter duty ledger name E.g. Education Cess @ 2%
Group the duty ledger under Duties & Taxes
In Type of Duty/Tax field select Excise
In Excise Accounting Code field specify the accounting code of education ces.
Note: Excise Accounting Code is not mandatory as this code is not printed in invoice or the excise reports.
In Duty Head field select Cess on Duty
In Percentage of Calculation specify the rate of cess charged on the excise stock
In Method of Calculation select Type of Duty - Additional Duty
Note: From Rel 4.8 an option to provide Bank Details is provided in the Ledger Master.
Press Enter to save.
In Name field enter duty ledger name E.g. Secondary Education Cess @ 1%
Group the duty ledger under Duties & Taxes
In Type of Duty/Tax field select Excise
In Excise Accounting Code field specify the accounting code of education ces.
Note: Excise Accounting Code is not mandatory as this code is not printed in invoice or the excise reports.
In Duty Head field select Cess on Duty
In Percentage of Calculation specify the rate of cess charged on the excise stock
In Method of Calculation select Type of Duty - Surcharge on Tax
Press Enter to save.
Go to Gateway of Tally > Accounting Vouchers > F9: Purchase
Select the Excise - Purchase as the Voucher Type from the list of types.
Select Alt + I: Item Invoice if it is in Acct Invoice Mode
Enter the Supplier Invoice No. as SI\6035 and Date as 4-1-2011
By Default Tally.ERP 9 displays the Excise Unit as ABC Company as defined during voucher type creation.
Select the Party’s A/c Name from the list of Ledger Accounts e.g. Sterling Steel Industries
The Supplier’s Details sub-form accept the default details
In Purchase Ledger field select the purchase ledger. Based on the VAT/Tax Class selected in the purchase ledger VAT/Tax Class will be displayed automatically
In Name of Item field select the stock item purchased. e.g. Hot Rolled Coil
In Quantity field specify the quantity of item purchased e.g. 500 kg
In Rate field specify the rate at which the excise stock is purchased. e.g. 1000
Note: In Rate field specify the actual purchase rate per unit excluding the Duty & VAT.
Amount will be calculated & displayed automatically
Press Enter to view Excise Details screen.
In Excise Details screen, specify the RG 23 D Entry No. where the reference of this purchase entry is available
In Supplier Invoice Details section specify the Invoice Number, Invoice Date & PLA/RG 23D Entry No. of the supplier. In Assessable Value field specify the amount on which the duty is calculated (manufacturer assessable value). Specify Rs. 5,00,000
Note: In all the Dealer Excise Reports, duty details of the excise goods purchased (sold) are captured from the Excise Details screen. Hence it is must to provide all the details in Excise Details even while recording Excise Purchase using Exclusive Method (by selecting Duty ledgers).
Select Excise Duty Ledger - Basic Excise Duty @ 10% duty will be calculated & displayed automatically.
Similarly select Education Cess & Secondary Education Cess ledger. Cess will be calculated & displayed
Select Input VAT ledger to account the VAT paid on the purchases
The completed Excise Purchase Voucher is displayed as shown
Press Enter to accept.
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