Ledgers created under direct expenses, indirect expenses, direct incomes,and indirect incomes, can be used to record incomes and expenses of the company. The income or expense thus recorded using the ledger can be included in the assessable value for excise, if required.
To create an income or an expense ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the Ledger.
3. Select the Group, as required in the field Under.
4. Set the option Inventory Values are Affected to Yes, if required.
5. Select the Rounding Method, as required.
6. Set the option Is VAT/ CST Applicable to Applicable.
7. Enable the option Set/ Alter VAT/ CST Details to define tariff details for this ledger, if required.
8. Set the option Is Excise Applicable to Applicable.
9. Enable the option Set/ Alter Excise Details to define tariff details for this ledger, if required.
To record Excise Details
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Enter Tariff Name.
2. Enter HSN Code.
3. Select the Reporting UOM.
4. The cursor skips the field Valuation Type. To modify it, click F12: Configure and enable the option Allow Modification of Valuation Type.
5. Enter the Rate of duty.
6. Press Enter.
You can record excise details based on the date of applicability for different periods, if required.
10. Select the required Duty/Tax in the field Include in Assessable Value Calculation for.
11. Select the Method of Calculation, as required.
On selecting Based on Value method, expenses will be apportioned based on the Value of the stock item.
o Packing charges is 5,000
o Value of Item X is 50,000
o Value of Item Y is 60,000
o Apportionment of Packing Charges to Item X: 5,000*50,000/1,10,000 =2272.73
o Apportionment of Packing Charges to Item Y: 5,000*60,000/1,10,000 = 2727.27
o Assessable Value of Item X (52,272.73) = Value of Item X (50,000) +Packing Charges (2,272.73)
o Assessable Value of Item Y (62,727.27) = Value of Item Y (60,000) +Packing Charges (2,727.27)
On selecting Based on Quantity method, expenses will be apportioned based on the quantity of the stock item.
o Packing charges is 5,000
o Quantity of Item X is 200 and Value is 20,000
o Quantity of Item Y is 600 and Value is 60,000
o Apportionment of Packing Charges to Item X: 5,000*200/800 =1,250
o Apportionment of Packing Charges to Item Y: 5,000*600/800 = 3,750
o Assessable Value of Item X (21,250) = Value of Item X (20,000) +Packing Charges (1,250)
o Assessable Value of Item Y (63,750) = Value of Item Y (60000) +Packing Charges (3,750)
12. Press Enter.
13. Enter opening balance, if required.
The completed Ledger Creation screen appears as shown below:
14. Press Enter.
'Creating Income or Expense Ledgers (Excise for Manufacturer)' has been shared with