Recording Excise Purchase Transactions (Excise for Manufacturer)

Excise purchase transactions can be recorded with all required statutory details.

ABC Company is a manufacturer of different types of spectacles. They purchase raw materials from Raj Agencies who manufacture frames and other related parts.

On 01 April 2015, ABC Company purchased the following stock items from Raj Agencies:

This purchase transaction involves:

●     Freight charges of Rs. 1000.

●     Excise Duty of 12.5% on the total assessable value.

Let us now see how this transaction is recorded in Tally.ERP 9.

Purchase of raw materials

When a company is enabled for excise, the transaction is by default considered an excise transaction.

To record a purchase invoice

1.    Go to Gateway of Tally > Accounting Vouchers > F9: Purchases

2.    Enter the Supplier Invoice Number and Date.

3.    Select the required party ledger and purchase ledger.

4.    Select the stock items (principal input).

5.    Enter Quantity and Rate.

6.    Select the Expense ledger and enter the amount.

7.    Select the Excise Duty ledger.

8.    Select the Input VAT ledger.

9.    Click A:Tax Analysis to view the complete tax analysis of this transaction.

10.  Press Esc.

The completed purchase invoice appears as shown below:

11.  Press Enter to save the transaction.

Purchase of raw materials to a different excise unit

On 02 April 2015, ABC Company purchased light filtering lens from Crystal Lens. The stock items were delivered to a godown, which is linked to the excise tax unit ABC Company II.

The stock item details are as below:

To record the purchase transaction

1.    Go to Gateway of Tally > Accounting Vouchers > F9: Purchases

2.    Enter Supplier Invoice No. and Date.

3.    Select ABC Company II as the Tax Unit.

4.    Select the party ledger and purchase ledger.

5.    Select the stock item (principal unit), and enter the quantity and rate.

6.    Select the ledger Excise Duty.

7.    Select the ledger Input VAT.

8.    Click A: Tax Analysis.

9.    Press Esc.

The completed purchase invoice appears as shown below:

10.  Press Enter to save.