Duty rates can be defined at the ledger or stock item level. Based on the requirement of the business, tariff and rate of duty can be defined either in the ledger or stock item master.
GoIndia is a company that supplies fuel to fuel stations. They sell petrol and diesel, both branded and unbranded. The rate of duty for each of their stock item is different. Hence, they prefer to define the tariff details in the stock item master.
In this scenario, tariff details can be defined at the stock item or ledger level.
To define the tariff and rate of duty at the stock item level
1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create.
2. Enter the stock item name.
3. Enable the option Set/Alter Excise Details in the Stock item creation screen.
The Excise Tariff Details screen is displayed.
4. Provide the tariff details in Excise Tariff Details screen.
● Enter the Tariff name and HSN code.
● Select the Reporting unit of measure and Valuation type.
If the Valuation Type is selected as Valorem + Quantum:
● Enter Rate of duty, for example, 14%.
● Enter the Rate per Unit, for example, 15.
5. Press Enter to accept the Excise Tariff Details screen.
6. Accept the Stock Item Creation screen.
Similarly, tariff can be defined in the Ledger.
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.
On selecting this stock item (created in the previous section), the tariff and rate of duty defined in it gets applied in the transaction.
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