Availing CENVAT Credit on Purchases from Excise Dealers

In Tally.ERP 9, CENVAT Credit on purchases from Excise Dealers can be availed -

1. While recording the purchase transaction (in the same invoice)

2. Later by recording a separate Debit Note: In this case first purchase invoice will be recorded without availing credit and later a separate Debit Note will be recorded to avail the CENVAT credit.

In Tally.ERP 9 Release 3.0, In CENVAT Availing Debit Note, a new option Copy Details from previous Ledger(s) has been provided in Excise Duty Allocation screen to copy Invoice Number/ Bill of entry No. & Date, Party Name, Name of Item, Quantity, and Assessable Value of a CENVAT Ledger to other the CENVAT ledgers selected in the voucher. This option helps the users in copying the duty details of previous ledger to subsequent ledger instead of entering the details manually.

Example: On 2-7-2008 ABC Company received the bill for Rs. 14,610 from Shubh distributors for the supply of 100 Water Containers – 20 ltrs @ Rs. 140.48 per container.

Against this purchase of 100 water containers, ABC Company can avail CENVAT Credit on Rs. 10,000 (@ Rs. 100 per Container i.e., on Assessable Value as per manufacturer’s invoice).

1. Avail CENVAT Credit on purchases (in the same invoice).

Create Party Ledger

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

• In the Name field enter the name of the ledger. e.g. Shubh Distributors

• In Under field select Sundry Creditors

• Enter the Default Credit Period if any

• Enter the Mailing Details and Tax Information

• Enable Set/Alter Excise Details to Yes

• Enter the Excise Details as shown

• Press Enter to save

Record a Purchase Voucher

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

1. In Voucher Type sub form select Excise – Purchases as the voucher type.

2. Ensure that the Purchase Voucher is in Item Invoice Mode.

3. Enter the Date as 2-7-2008

4. In Supplier Invoice No. field enter the Invoice No. as SD/4578.

5. In Party’s A/c Name field select the supplier i.e. Shubh Distributors from the List of Ledger Accounts.

6. In Nature of Purchase field First Stage Dealer is displayed automatically.

7. In Purchase Ledger field select the ledger Purchase of Raw Materials from List of Ledger Accounts.

8. VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the purchase ledger, which can be changed.

9. In Name of Item field select the Stock Item i.e. Water Container – 20 Ltrs

10. In Quantity field enter the quantity as 100

11. In Rate field enter the rate as Rs. 124 [Actual purchase rate (140) – CENVAT Credit (16.48)].

12. Amount will be displayed automatically

13. Select Basic Excise Duty (CENVAT) ledger to view the Duty Details screen

Note: To Avail the CENVAT Credit user needs to select CENVAT Type of Duty ledgers

14. In Excise Duty Allocation screen

15. In the fields Type of Ref and Name field the details will be defaulted automatically

16. In the Name field select the Item – Water Container – 20ltrs

17. In the Assessable Value field enter Rs. 10,000 (Assessable Value as per the Manufacturer’s invoice)

18. In the Amount field the Duty Amount will be calculated and displayed based on the assessable value entered.

15. Select Education Cess (CENVAT) ledger to view the Duty Details screen

16. The Duty Details screen appears as shown

Note: For the Education Cess (CENVAT) the Basic Excsie Duty(CENVAT) amount is defaulted as the assessable value.

17. Select Secondary Education Cess (CENVAT) ledger to view the Duty Details screen. In the Duty Details screen accept the default details.

18. Select Input VAT @ 4% ledger. Amount will be displayed automatically

19. Set Show Statutory Details to Yes to view statutory details

Note: To view the calculation details press Alt+F1 or click on F1: Detailed button in the buttons bar.

20. In the Bill-wise Details screen accept the default details

21. Enter the transaction details in the Narration field

22. Press Enter to save.

CENVAT credit availed in the purchase voucher will be displayed in the Credit Availed report.

To view the Credit Availed report

Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Manufacturer > CENVAT Registers > Credit Availed

2. Avail CENVAT Credit on purchases (later by recording a separate Debit Note).

Create Voucher Class for Debit Note

Go to Gateway of Tally > Accounts Info. > Voucher Types > Alter

• From the List of Voucher Types select Debit Note

• In the Debit Note Voucher tab down to Name of Class field

• In the Name of Class enter the class name as CENVAT Availing

• In the Voucher Type Class screen set the option Use Class for Excise/CENVAT Adjustments to Yes

• Press Enter to save Voucher Type Class screen and Voucher Type Alteration screen.

Record a Purchase Voucher

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

1. In Voucher Type sub form select Excise – Purchases as the voucher type.

2. Ensure that the Purchase Voucher is in Item Invoice Mode.

3. Enter the Date as 2-7-2008

4. In Supplier Invoice No. field enter the Invoice No. as SD/4578.

5. In Party’s A/c Name field select the supplier i.e. Shubh Distributors from the List of Ledger Accounts.

6. In Nature of Purchase field First Stage Dealer is displayed automatically.

7. In Purchase Ledger field select the ledger Purchase of Raw Materials from List of Ledger Accounts.

8. VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the purchase ledger, which can be changed.

9. In Name of Item field select the Stock Item i.e. Water Container – 20 Ltrs

10. In Quantity field enter the quantity as 100

11. In Rate field enter the rate as Rs. 140.48

12. Amount will be displayed automatically

13. Select Input VAT @ 4% ledger. Amount will be displayed automatically

14. Set Show Statutory Details to Yes to view statutory details

15. In the Bill-wise Details screen accept the default details

16. Enter the Narration, if any

17. Press Enter to save.

Record a Debit Note (to avail CENVAT Credit)

Set Up:

In F11: Features (F1: Accounting Features)  

• Ensure the option Use Debit/Credit Notes is set to Yes

• Set Use Invoice mode for Debit Notes is set to Yes

Go to Gateway of Tally > Accounting Vouchers > Ctrl + F9: Debit Note

1. In Change Voucher Type screen in Class field select CENVAT Availing from the Voucher Class List

2. In Used For field CENVAT Availing will be displayed automatically

3. In Excise Unit field select ABC Company

4. In Nature of Purchase field select First Stage Dealer

5. In Debit field select Basic Excise Duty (CENVAT) to view Excise Duty Allocation screen

6. In Excise Duty Allocation screen

7. In Type of Ref select New Ref

8. In Invoice No./Bill of Entry No. & Date field enter the reference name. Here enter the reference name used in the purchase voucher

9. In Party Name field select Shubh Distributors from the List of Ledger Accounts

10. In the Name of Item field select Water Container – 20 Ltrs

11. In Quantity field enter 100

12. In the Assessable Value field enter Rs. 10,000 (i.e. the manufacturer’s sales value)

13. In the Rate field the rate of duty i.e. 16 % defined in the ledger will be defaulted (if the rate of duty is not defined during ledger creation enter the applicable rate of duty)

14. The duty amount will be calculated and displayed in the Amount field

7. In Debit field select Education Cess (CENVAT) to view Excise Duty Allocation screen

8. In Excise Duty Allocation screen

9. Set the option Copy Details from Previous Duty Ledger (s) to Yes and press enter.

The duty details like - Invoice Number/Bill of Entry No.& Date, Party Name, Name of Item, Quantity & Assessable Value (to calculate the Education Cess) & Cess Amount will be calculated displayed automatically.

Note: If you does not want to copy the details of previous ledger retain No to the option Copy Details from Previous Duty Ledger(s) & manually enter the CENVAT credit details for the ledger selected.

The completed Duty Details for Education Cess (CENVAT) will be displayed as shown

Note: The option Copy Details from Previous Duty Ledger (s) will be displayed only during creation of voucher. This option will not be displayed in Voucher Alteration mode.

9. Similarly, in Debit field select  Secondary Education Cess (CENVAT) to view Excise Duty Allocation screen

10. In Excise Duty Allocation screen

7. Set the option Copy Details from Previous Duty Ledger (s) to Yes and press enter.

The duty details like - Invoice Number/Bill of Entry No.& Date, Party Name, Name of Item, Quantity & Assessable Value (to calculate the Education Cess) & Cess Amount will be calculated displayed automatically.

Note: If you does not want to copy the details of previous ledger retain No to the option Copy Details from Previous Duty Ledger(s) & manually enter the  CENVAT credit details for the ledger selected.

The completed Duty Details for Secondary Education Cess (CENVAT) will be displayed as shown

11. In the Credit field select Purchase of Raw Materials ledger to view Inventory Allocation screen

12. In VAT/Tax Class screen select Not Applicable

13. In the Inventory Allocation screen

14. In Name of Item field select the stock item Water Container – 20 Ltrs

15. In the Amount column enter the total amount (of Basic Excise Duty, Education Cess and Secondary Education Cess) Rs. 1648

14. Enter Narration if any

15. Press Enter to save

Note: Similarly you can record purchases from Second Stage Dealers and Importers

CENVAT Credit availed in the purchase voucher will be displayed in the Credit Availed report.

To view the Credit Availed report

Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Manufacturer > CENVAT Registers > Credit Availed