Implementation of Excise For Manufacturers in Tally - ERP 9
Implementation of Excise For Manufacturers in Tally - ERP 9
Implementation of Excise For Manufacturers in Tally - ERP 9
ERP 9
The information contained in this document is current as of the date of publication and subject to change. Because Tally must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Tally, and Tally cannot guarantee the accuracy of any information presented after the date of publication. The information provided herein is general, not according to individual circumstances, and is not intended to substitute for informed professional advice. This document is for informational purposes only. TALLY MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT AND SHALL NOT BE LIABLE FOR LOSS OR DAMAGE OF WHATEVER NATURE, ARISING OUT OF, OR IN CONNECTION WITH THE USE OF OR INABILITY TO USE THE CONTENT OF THIS PUBLICATION, AND/OR ANY CONDUCT UNDERTAKEN BY PLACING RELIANCE ON THE CONTENTS OF THIS PUBLICATION. Complying with all applicable copyright and other intellectual property laws is the responsibility of the user. All rights including copyrights, rights of translation, etc., are vested exclusively with TALLY SOLUTIONS PRIVATE LIMITED. No part of this document may be reproduced, translated, revised, stored in, or introduced into a retrieval system, or transmitted in any form, by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Tally Solutions Pvt. Ltd. Tally may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written licence agreement from Tally, the furnishing of this document does not give you any licence to these patents, trademarks, copyrights, or other intellectual property. 2011 Tally Solutions Pvt. Ltd. All rights reserved. Tally, Tally 9, Tally9, Tally.ERP, Tally.ERP 9, Shoper, Shoper 9, Shoper POS, Shoper HO, Shoper 9 POS, Shoper 9 HO, TallyDeveloper, Tally Developer, Tally.Developer 9, Tally.NET, Tally Development Environment, Tally Extender, Tally Integrator, Tally Integrated Network, Tally Service Partner, TallyAcademy & Power of Simplicity are either registered trademarks or trademarks of Tally Solutions Pvt. Ltd. in India and/or other countries. All other trademarks are properties of their respective owners.
Contents
Introduction
Scope and Applicability ............................................................................................................................ 1 Manufacturer ............................................................................................................................................. 1 Excisable Goods ....................................................................................................................................... 2 Types of Excise Duties ............................................................................................................................. 2 Valuation Methods .................................................................................................................................... 3 CENVAT Credit ....................................................................................................................................... 4 Excise Registration (of Factory/Warehouse) ............................................................................................ 5
Separate Registration ..........................................................................................................................................5 Excise Control Code (ECC) Number ...................................................................................................................6
Types of Duties and Method of Calculation ............................................................................................. 9 Time and Mode of Payment of Duty ..................................................................................................... 10 Returns & Timelines ............................................................................................................................... 10 Salient Features of Excise in Tally.ERP 9 .............................................................................................. 11 Excise Process in Tally.ERP 9 ................................................................................................................ 12
2.6 Creating Excise Duty Ledgers .......................................................................................................... 36 2.7 Creating CENVAT Ledgers.............................................................................................................. 42
Contents
2.8 Creating a Expense Ledger ............................................................................................................... 45 2.9 Creating Excise Voucher Types ....................................................................................................... 47
2.9.1 Creating Purchase Voucher Type .............................................................................................................47 2.9.2 Creating Sales Voucher Type ...................................................................................................................48 2.9.3 Creating a Debit Note Voucher Type ....................................................................................................... 50 2.9.4 Manufacturing Journal Voucher Type ......................................................................................................51
2.10 Creating Tariff Classification ......................................................................................................... 52 2.11 Creating Stock Item - Raw materials .............................................................................................. 54 2.12 Creating Stock Item - Finished Goods (MRP) ................................................................................ 59 2.13 Creating Stock Item - Finished Goods (Quantum) ......................................................................... 67 2.14 Creating Stock Item - Finished Goods (Ad Valorem) .................................................................... 71
4.6 CENVAT Credit on Capital Goods ................................................................................................ 114 4.7 Creating a Manufacturing Voucher ................................................................................................ 125 4.8 Manufacture of Multiple Finished Foods (with or Without By-products) ..................................... 126 4.9 Creating a Excise Sales Voucher Rule 11 Invoice ...................................................................... 129 4.10 Rule 11 Invoice for Stock Items Falling Under Different Valuation Type ................................. 136 4.11 Rule 11 Invoice for Stock Items with Expenses ........................................................................... 141 4.12 Sales at Special Rate ..................................................................................................................... 144 4.13 Removal as Such ........................................................................................................................... 146 4.14 Captive Consumption ................................................................................................................... 151
4.14.1 Accounting Captive Consumption (of Goods to manufacturer Duty Chargeable Final Products) .....152 4.14.2 Accounting Captive Consumption (of Goods to manufacturer Final Products Exempted from Duty) .155
4.16 Accounting Cenvat Reversal/Refund ............................................................................................ 164 4.17 Exempt Sales ................................................................................................................................. 171 4.18 Accounting Amortisation Sales .................................................................................................... 174 4.19 Creating a Debit Note (Purchase Return) Rule 11 invoice ........................................................ 179
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Contents
4.20 Advance Payment of Excise Duty ................................................................................................ 183 4.21 Creating a Journal Voucher Adjustment of Advances against the Duty Payable ...................... 186 4.22 Creating a Journal Voucher CENVAT Credit Adjustment ....................................................... 190 4.23 Creating a Payment Voucher GAR 7 Payment (Without using Auto Fill) ................................ 195 4.24 Creating a Payment Voucher GAR 7 Payment (using Auto fill)............................................... 201
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Introduction
Excise Duty or Duty on Excise is a tax on goods manufactured or produced in India and intended for domestic consumption i.e. sale in India.The Excise Duty is payable at the time of production or manufacture, however, for administrative convenience duty is paid at the time of removal of goods. Excise Duty is an indirect tax. The liability of payment of Excise Duty is of manufacturers or producers (which is passed on to the ultimate consumer). The levy and collection of duty of Excise is provided under authority of the Central Excise Act, 1944 at the rates specified Central Excise Tariff Act, 1985.
The Duty is on Goods The Goods must be excisable The goods must be manufactured or produced Manufacture and Production must be in India
Manufacturer
Manufacturer is a person who actually manufactures or produces excisable goods, i.e. one that actually brings into existence new and identifiable product.
Introduction
Excisable Goods
Excisable Goods means goods specified in the schedule to the Central Excise Tariff Act, 1985 as being subject to a duty of Excise. The Basic requirements to be satisfied are, Goods must be movable.
Goods must be marketable i.e. the goods must be such that it is known in the market and is capable of being bought or sold
Introduction
8. Duty on Medical and Toilet preparations: A duty of excise is imposed on medical preparations under Medical and Toilet Preparations (Excise Duties) Act, 1955. 9. Additional duty on mineral products - Additional duty on mineral products (like motor spirit, kerosene, diesel and furnace oil) is payable under Mineral Products (Additional Duties of Excise and Customs) Act, 1958. 10.Additional Customs Duty commonly known as countervailing Duty (CVD): Countervailing duty (CVD) is imposed on the Imports. 11.Special Additional Duty of Customs (Special CVD): Special CVD is being imposed on items bound under the Information Technology Agreement (except information technology software), and also on specified inputs/raw materials for manufacture of electronics/IT goods. 12. Additional Duties of Excise (Textiles and Textile Articles) [AED (TTA)] 13. Additional Duty of Excise (Tea and Tea Waste) [AED (TTW)] 14. Secondary Higher Education Cess
Valuation Methods
Value of the excisable goods has to be necessarily determined to levy the duty on the goods. Under the Central Excise Act, 1944, the following methods of valuation of goods are considered for the assessment of Duty 1. Ad valorem/ Transaction Value: Transaction value means the value of goods which are sold at the time and place of removal and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, including any amount charged for, or to make provision for, advertising or publicity, marketing and selling, organization expenses, storage, outward handling, servicing, warranty, commission or any other matter. Transaction value, on each removal of goods shall be determined on the fulfilment of following conditions
The goods should be sold at the time and place of removal Buyer and Assessee should not be related Price should be the sole consideration for the sale Each removal will be treated as a separate transaction and 'value' for each removal will be separately fixed.
2. Ad Quantum: In case of Ad Quantum the duty is payable on the basis of certain unit Like Weight, Length, volume etc. For Example: Duty on cigarette is payable on the basis of length of the cigarette, duty on Sugar is based on per Kg. 3. Value determined on the basis of Maximum Retail Sale Price: Retail sale price means the maximum price at which the excisable goods in packaged form may be sold to the ultimate consumer and includes all taxes local or otherwise, freight, transport charges, commission payable to dealers, and all charges towards advertisement, delivery, packing, forwarding and the like, as the case may be, and the price is the sole consideration for such sale. Following factors needs to be considered while determining the value on the basis of maximum retail sale price
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Introduction
Where on the packages of any excisable goods, more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price Where the retail price, declared on the package of any excisable goods at the time of its clearance from the place of manufacture, is altered to increase the retail sale price, such altered retail sale price shall be deemed to be the retail sale price. where different retail sale prices declared on different packages for the sale of any excisable goods in packaged form in different areas, each such retail price shall be the retail sale price for the purposes of valuation of the excisable goods intended to be sold in the area to which the retail sale price relates.
CENVAT Credit
The MODVAT scheme has been replaced by a new set of rules called CENVAT Credit Rules 2002. Duties eligible for CENVAT Credit A manufacturer or producer of final product is allowed to take CENVAT credit of duties specified in the Cenvat Credit Rules, 2002. The duties specified under Cenvat Credit Rules, 2002 are:
Basic Excise Duty on inputs specified in the First Schedule to Central Excise tariff Act (corresponding CVD on imported goods is allowable). Special Excise Duty on goods specified in the Second Schedule to the Tariff Act (corresponding CVD on imported goods is allowable). Additional Excise Duty paid under Additional Duties of Excise (Textile and Textile Article). Additional Excise Duty paid under Additional Duties of Excise (Goods of Special Importance). National Calamity Contingent duty (NCCD). Education Cess and Secondary and Higher Education Cess on Excise Duty. Additional custom duty leviable under Customs Tariff Act (Spl. CVD) Education Cess and Secondary and Higher Education Cess on CVD Additional Excise Duty paid under Clause 85 of Finance Bill,2005 on Pan Masala and Certain other Tobacco products. Service tax on input services. Education Cess and Secondary & Higher Education Cess paid on service tax. This credit can be utilised only for payment of education cess on final product or output services.
Introduction
Every manufacturer of excisable goods (including Central/State Government undertakings or undertakings owned or controlled by autonomous corporations) on which excise duty is leviable. Persons who desire to issue CENVATABLE invoices under the provisions of the CENVAT Credit Rules, 2001. Persons holding private warehouses. Persons who obtain excisable goods for availing end-use based exemption. Exporters manufacturing or processing export goods by using duty paid inputs and intending to claim rebate of such duty or by using inputs received without payment of duty and exporting the finished export goods.
On receipt of application for registration, registration number will be issued to the applicant. Later, the jurisdictional Excise Officer carries out the post facto verification and on fulfilment of all the requirements, issues the registration certificate with in 7 days from the date of application.
Form A2: Application form for central excise registration of powerloom weavers / hand processors / Dealers of Yarns and Fabrics/ manufacturers of ready made Garments Form A3: Application form for central excise registration of manufacturers of hand rolled cheroots of tobacco falling under sub-heading no. 2402.00 of central excise tariff act, 1985
Separate Registration
Separate Registration is required in respect of separate premises except in cases where two or more premises are actually part of the same factory (where processes are interlinked), but are segregated by public road, canal or railway-line. The fact, that, the two premises are part of the same factory will be decided by the Commissioner of Central Excise based on factors, such as:
Interlinked process - product manufactured/produced in one premise are substantially used in other premises for manufacture of final products. Large number of raw materials received or proposed to be received is common for both or all the premises Common electricity supplies. Common labour or work force
Introduction
Common administration or works management. Common sales tax registration and assessment Common Income Tax assessment Any other factor as may be indicative of inter-linkage of the manufacturing processes.
Separate Registration is required for each depot, godown etc. in respect of persons issuing CENVAT invoices. However, in the case liquid and gaseous products, availability of godown should not be insisted upon. Registration Certificate may be granted to minors provided they have legal guardians' i.e. natural guardians or guardians appointed by the Court, as the case may be, to conduct business on their behalf.
This is followed by 3-Character numeric code - 001, 002, 003 etc. In case, a manufacturer, registered with the Central Excise Department, has only one factory /dealer's premise/warehouse, the last three characters will be 001. If there are more than one factories/warehouses/dealer's premises of such a person having common PAN for all such factories/warehouses/dealer's premises, the last 3 character of the new ECC would be 001, 002, 003 etc. The ECC Number has to be quoted on the GAR7Challans covering deposit of Central Excise duties, Additional duties, Cess and other dues to the Government. Examples: Where the concerned person has only one factory: ECC Number will be - PAN + XM + 001 Suppose PAN is ABCDE1234H, the ECC Number will be ABCDE1234H XM 001 Where the concerned person has more than one factory, say 3 factories, having PAN as aforesaid, then the ECC Number will be:
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Introduction
ABCDE1234H XM 001 ABCDE1234H XM 002 ABCDE1234H XM 003 Where the concerned person has one factory and is also registered as dealer, having PAN as aforesaid, then the New ECC Number will be: ABCDE1234H XM 001 (for Factory) ABCDE1234H XD 001 (for Dealer)
Rule 11 of the Central Excise (No.2) Rules, 2001 provides that no excisable goods shall be removed from a factory or a warehouse except under an invoice signed by the owner of the factory or his authorised agent. In case of cigarettes, which is under physical control, the Factory Officers are posted by rotation in the factory (If the factory operation is 24 hours, the officers are posted 24 hours), will check the operations as per the instructions contained in commodity manual for cigarettes. Accordingly, in the case of cigarettes, each invoice shall also be countersigned by the Inspector of Central Excise or the Superintendent of Central Excise before the cigarettes are removed from the factory. The invoice shall be serially numbered and shall contain the registration number, description, classification, time and date of removal, rate of duty, quantity and value, of goods and the duty payable thereon. The serial number shall commence from 1st April every year [beginning of a financial year]. The serial number can be given at the time of printing or by using franking machine. But when the invoice book is authenticated in the manner specified in sub-rule (5) of rule 11, each leaf should contain serial number. Hand written serial number shall not be accepted. In case of computer-generated invoice, the serial number may be allowed to be generated and printed by computer at the time of preparation of invoice ONLY IF the software is such that computer automatically generates the number and same number cannot be generated more than once. For this purpose, the Central Excise Officers may check the system/software from time to time.
Introduction
The original copy being marked as Original For Buyer The duplicate copy being marked as Duplicate For Transporter The triplicate copy being marked as Triplicate For Assessee
The above requirement is mainly for Central Excise purposes. However, the assessee may make more than three copies for his other requirements. But such copies shall be prominently marked Not For Cenvat Purposes.
The rule 11of the Central Excise (No.2) Rules, 2001 provides that only one invoice book shall be in use at a time, unless otherwise allowed by the Deputy/Assistant Commissioner of Central Excise in the special facts and circumstances of each case. The Board has decided that where assessee requires two different invoice books for the purposes of removals for home-consumption, and removals for export they may do so by intimating the jurisdictional Deputy/Assistant Commissioner of Central Excise. Wherever, an assessee is allowed to keep more than one invoice book, he should be asked to keep different numerical serial numbers for the different sets. In case of running stationary used in computers, the bound book shall not be insisted upon provided the stationary is pre-printed with distinctive names and marks of the assessee. After the invoices are prepared, the triplicate copy shall be retained in bound-book form. Where invoices are to be typed written, the leafs have to be first taken out from the book for typing. In such cases also the triplicate copy shall be retained in bound-book form.
Authentication of Invoices
The rule provides that owner or working partner or Managing Director or Company Secretary shall authenticate each foil of the invoice book, before being brought into use. However, in order to facilitate the trade it has been decided that any person duly authorised in this regard by the Company, owner or working partner may also authenticate invoices. Copy of the letter of authority should be submitted to the Range office.
Introduction
Introduction
Assessees availing small scale industries (SSI) concession of duty based on turnover
Have to pay duty on monthly basis. Duty in respect for clearances made in a month should be paid by 5th/6th of the following month. 2. Excise Duty shall be paid to the government along with G.A.R. 7 Challans.
Monthly
Monthly
Quarterly
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Introduction
Simple and user-friendly Quick and easy to set up and use Allows Multiple Excise Registration (Manufacturer & Dealer) in Single Company Create Tariff (HSN) / Commodity Code Flexibility to have separate Unit of Measures for recording transactions and excise reporting Item wise Valuation Methods (Valorem, Quantum, MRP) Maintain Rule 11 Excise Invoice Can apportion Expense / Income ledger value to calculate Assessable Value Item wise Duty calculation for different Valuation Methods in single invoice Generate Rule 11 invoice for Purchase Returns Record Exempt, Export & Special Rate transactions Avail Full / Partial CENVAT Credit on Inputs and Capital Goods/ Service Tax towards Duty payable Reversal of CENVAT Credit Print G.A.R. -7 Challan Maintain Invoice Register Maintain RG -1 register Generate CENVAT Credit Register Generate ER-1 & ER-3 returns Maintain PLA Register Excise Computation Report Generate RG 23 Part II Reports for Inputs and Capital Goods Generate Annexure -10 and Abstract reports
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Introduction
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Specify Aqua Ltd. as the Company Name and Address details Select India in the Statutory Compliance for field Specify the State, Pin code & Accounts with Inventory details
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For complete details on Company Creation refer Tally.ERP 9 Help, topic Creating Company in Tally.ERP 9
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3. Registration Type: Select Manufacturer from Registration Types list 4. Address, Telephone No and PIN Code: Address, Telephone No. and PIN Code details are captured from the company creation screen. If required, it can be altered. 5. Excise Details: Under this section provide Excise Details of the unit. Excise Details will be specific to the Registration Type selected.
Registration Type selected will be displayed below the heading - Excise Details, to identify the unit as a manufacturer or a dealer.
Unit Mailing Name: The Mailing Name entered in the company creation will be displayed as the Unit Mailing Name. If required, it can be altered.
Name entered in the Unit Mailing Name will be used in all Excise Reports.
Excise Registration (ECC) No.: Enter 15 digits Excise Registration Number (ECC) of the Company/Unit, e.g. AAPCL2149RXM001 Date of Registration: Enter the date of Excise registration, e.g. 10-4-2001 Type of Manufacturer: select the appropriate Manufacturer Type from the list of Types of Manufacturer, e.g. Regular
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Large Tax Payer Unit (LTU) Code: Enter the LTU code, if your company/unit is a large tax payer and has opted for assessment in Large Tax Payer Unit. Skip the Large Tax Payer Unit (LTU) Code field.
Large Tax Payers are those assessees who pay large amount of Tax. They are the eligible taxpayer for the purposes of being served by the LTU. For e.g.: Rs.5 Crores Large Tax Unit is self-contained tax office under the Department of Revenue acting as a single window clearance point for all matters relating to Central Excise, Income Tax/ Corporate Tax and Service Tax. Eligible Tax Payers who opt for assessment in LTU shall be able to file their excise return, direct taxes returns and service tax return at such LTUs and for all practical purposes will be assessed to all these taxes there under. These units are being equipped with modern facilities and trained manpower to assist the tax payers in all matters relating direct and indirect tax/ duty payments, filing of documents and returns, claim of rebates/ refunds, settlement of disputes etc. Large Tax Unit location Code for Bangalore is L-10000 More information on LTU is available on - http://www.cbec.gov.in/cae1-english.htm
Excise Book Name (as per Rule 11): Enter the Excise Book Name which is allowed by the Commissioner of Central Excise for the company/unit.
Select the option New Number from the List of Excise Books, to view Serial Number Alteration (Secondary) screen
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Name:
Enter the excise invoice book name allowed by the Commissioner of Central Excise for the company/unit, e.g. Aqua/Rule11/Book1/11-12 Aqua - Denotes Company Name. Rule 11: Denotes that invoice book is maintained as per Rule 11 of Central Excise Rules, 2002 Book1: Stands for Book Number, which is allowed for the current financial year 11-12: Denotes the financial year.
Method
Automatic (Manual override) method of numbering assures the Rule 11 requirement of maintaining invoices serially numbered and sequence of numbering.
Prevent
Duplicates: By default this field will be set to Yes. Starting Number: Enter the Starting Voucher Number which is allowed by the Commissioner of Central Excise. E.g. 101 Width of Numerical part: Mention the width of the numerical part. Prefill with Zero: when this option is set to No the digits before the invoice number will be blank. If this field is set to Yes the invoice number will be prefilled with Zeros based on the width of numerical part e.g. 00001(where the width of numerical part is set to 5). Restart Numbering: In this field enter the Starting Number as 101 and ensure under Particulars the Type of Period is Yearly In this section user can set the dates to restart the voucher number by defining the types of period (Daily, Monthly, Never, weekly or Yearly).
Prefix
Details: Here enter the information to be prefixed with voucher number Applicable From: Enter 1-4-2011 in Applicable From field. The date mentioned in this field indicates the date from when the prefix should be displayed along with the voucher number. Particulars: Enter the information to be prefixed to the voucher number E.g. Aqua/ Suffix Details: Here enter the information to be suffixed with voucher number Applicable From: Enter 1-4-2011 in Applicable From field. The date mentioned in this field indicates the date from when the suffix should be displayed along with the voucher number. Particulars: Enter the information to be suffixed to the voucher number E.g. /11-12
For complete details on Restart Numbering, Prefix and Suffix Details refer Tally.ERP 9 Help, topic Voucher Types > Use Advance Configuration
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In Tally.ERP 9 user can create more than one Excise Book Name for the same company or Unit. But, as per Rule 11 of Central Excise Rules, 2001 only one invoice book shall be in use at a time. A unit can maintain more than one invoice book if it is allowed by the Deputy/Assistant Commissioner of Central Excise. To create more serial numbers, user can follow the above said procedure or he can directly create the serial numbers from the option Serial Number in Accounts info. menu.
The option Serial Number will be displayed in Accounts Info.menu only when the Excise Feature is enabled and the Registration Type of the Company/Unit is selected as Manufacturer. Serial Number option can be used to create or alter the serial numbers.
6. Other Details: In this section enter Range, Division and Commissionerate details Range: Enter the code Name and Address of the range under which your company is registered.
Code:
Enter Range Code as 08 Name: Enter Range Name as koramangala Address: Enter the Range Address
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Division: Enter the code Name and Address of the division under which your company is registered.
Code:
Enter Division Code as 02 Name: Enter Division Name as Division II Address: Enter the Division Address Commissionerate: Enter the code Name and Address of the Commissionerate under which your company is registered.
Code:
Enter Commissionerate Code as 09 Name: Enter Commissionerate Name as Bangalore I Address: Enter the Commissionerate Address
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Creating Masters
7. In the Excise Details screen Enter the Excise Registration (ECC) No. of the customer e.g. AACCL0014CXD001
Enter the Date of Excise Registration in Date of Registration field e.g. 20-Jul-2004 Enter the Range under which the supplier's company is registered. E.g. Yeshwanthpur II Enter the Division under which the supplier's company is registered. E.g. Yeshwanthpur Enter the Commissionerate under which the premise of the Supplier's company is registered. E.g. Bangalore III In Default Nature of Purchase field select the option Not Applicable Select the Nature of Removal as Domestic from Types of Removal list.
It is must to define the nature of removal for a customer. The Nature of Removal depends upon the removal, whether it is for Domestic/Exports/Exempt sales. The Type of Removal set for the ledger can be altered/changed during transaction.
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Creating Masters
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7. In the Excise Details screen, Enter the Excise Registration Number of the supplier. E.g. AESDE3210NXM001
Enter the Date of Excise Registration in Date of Registration field. E.g. 15-May-1999 Enter the Range under which the supplier's company is registered. E.g. Bommanahalli Enter the Division under which the supplier's company is registered. E.g. Division IV
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Creating Masters
Enter the Commissionerate under which the premise of the Supplier's company is registered. E.g. Bangalore I Select the Default Nature of Purchase as Manufacturer from Nature of Purchase
The Default Nature of Purchase depends upon the status of the supplier, whether he is a Manufacturer / First Stage Dealer / Importer / Second Stage Dealer. The default Type of Purchase set for the Ledger can be altered/changed during transaction.
The nature of removal can be defined for a supplier in such cases where the party acts as a supplier as well as a customer. However Nature of Removal will be used only in Sales and Debit Notes (where good are removed from factory)
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Creating Masters
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6. Set the option Use for Assessable Value Calculation to No The completed Sales ledger appears as shown
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Creating Masters
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6. Set the option Use for Assessable Value Calculation to No The completed purchase ledger appears as shown
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Creating Masters
5. Select the requisite VAT/Tax Class, for e.g., Input VAT @ 5% from the VAT/TAX Class list 6. Percentage of Calculation and Method of Calculation are updated automatically based on the Type of Duty/Tax and VAT/Tax Class selected. 7. Select Normal Rounding in Rounding Method field and set Rounding Limit to 1.
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Creating Masters
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5. Select the requisite VAT/Tax Class, for e.g., Output VAT @ 13.5% from the VAT/TAX Class list. 6. Percentage of Calculation and Method of Calculation are updated automatically based on the Type of Duty/Tax and VAT/Tax Class selected. 7. Select Normal Rounding in Rounding Method field and set Rounding Limit to 1
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Creating Masters
The option CENVAT needs to be selected in the Duty ledgers to avail the CENVAT Credit. This will be explained in detail in Purchase Voucher Processing.
4. In Excise Accounting Code field enter the accounting code of Basic Excise Duty- 00380003
8 digit Accounting Code and amount tendered against each type of duty should be mentioned in G.A.R.-7 Challan. Screen
5. In Duty Head field select Basic Excise Duty from the List of Excise Duty Classification
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Creating Masters
6. Set the option Inventory values are affected to No 7. In Percentage of Calculation field enter 10% as the percentage of calculation 8. In Method of Calculation field, Tally.ERP 9 defaults On Assessable Value as the method of calculation. 9. Select Not Applicable in Rounding Method field The completed Basic Excise Duty ledger appears as shown
Excise Duty is calculated on the assessable value (Stock item value +indirect expenses) of the transaction.
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Creating Masters
2. Creating Education Cess Ledger To create a Education Cess Ledger, Go to Gateway of Tally > Accounts Info. > Ledgers > Create 1. Enter the Name of the Education Cess ledger you wish to create, for e.g., Education Cess @ 2% 2. Select Duties & Taxes as the group name in the Under field. 3. Select Excise from the Type of Duty/Tax list in Type of Duty/Tax field.
The option CENVAT needs to be selected in the Duty ledgers to avail the CENVAT Credit. This will be explained in detail in Purchase Voucher Processing.
4. In Excise Accounting Code field enter the accounting code of Education Cess - 00380111
It is mandatory to mention Accounting codes of Duty/Cess along with description of duty in GAR 7 Challan.
5. In Duty Head field select Education Cess from the List of Excise Duty Classification
Creating Masters
7. In Percentage of Calculation field enter 2% as the percentage of calculation 8. In Method of Calculation field, Tally.ERP 9 defaults On Total Excise Duty as the method of calculation. 9. Select Not Applicable in Rounding Method field The completed Education Cess ledger appears as shown
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Creating Masters
3. Creating Secondary and Higher Education (SHE) Cess Ledger To create a Secondary and Higher Education (SHE) Cess Ledger, Go to Gateway of Tally > Accounts Info. > Ledgers > Create 1. Enter the Name of the Secondary and Higher Education Cess ledger you wish to create, for e.g., Secondary Education Cess @ 1% 2. Select Duties & Taxes as the group name in the Under field. 3. Select Excise from the Type of Duty/Tax list in the field Type of Duty/Tax.
The option CENVAT needs to be selected in the Duty ledgers to avail the CENVAT Credit. This will be explained in detail in Purchase Voucher Processing.
4. In Excise Accounting Code field enter the accounting code of Secondary Education Cess 00380115
It is mandatory to mention Accounting codes of Duty/Cess along with description of duty in GAR 7 Challan.
5. In Duty Head field select Secondary Education Cess from the List of Duty Heads
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6. Set the option Inventory values are affected to No 7. In Percentage of Calculation field enter 1% as the percentage of calculation 8. In Method of Calculation field, Tally.ERP 9 defaults On Total Excise Duty as the method of calculation. 9. Select Not Applicable in Rounding Method field The completed Secondary Education Cess ledger appears as shown
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Creating Masters
2. Creating Education Cess (CENVAT) Ledger To create a Education Cess CENVAT Ledger, Go to Gateway of Tally > Accounts Info. > Ledgers > Create 1. Enter the Name of the Education Cess ledger you wish to create, for e.g., Education Cess (CENVAT) 2. Select Duties & Taxes as the group name in the Under field. 3. Select CENVAT from the Type of Duty/Tax list in Type of Duty/Tax field. 4. Skip the Excise Accounting Code field 5. In Duty Head field select Education Cess from the List of Excise Duty Classification 6. Set the option Inventory values are affected to No 7. In Percentage of Calculation field enter 2% as the percentage of calculation 8. In Method of Calculation field, Tally.ERP 9 defaults On Total Excise Duty as the method of calculation. 9. Select Not Applicable in Rounding Method field The completed Education Cess CENVAT ledger appears as shown
Creating Masters
3. Creating Secondary and Higher Education Cess (CENVAT) Ledger To create a Secondary and Higher Education Cess CENVAT Ledger, Go to Gateway of Tally > Accounts Info. > Ledgers > Create 1. Enter the Name of the Secondary and Higher Education Cess ledger you wish to create, for e.g., Secondary Education Cess (CENVAT) 2. Select Duties & Taxes as the group name in the Under field. 3. Select CENVAT from the Type of Duty/Tax list in the field Type of Duty/Tax. 4. Skip the Excise Accounting Code field 5. In Duty Head field select Secondary Education Cess from the List of Duty Heads 6. Set the option Inventory values are affected to No 7. In Percentage of Calculation field enter 1% as the percentage of calculation 8. In Method of Calculation field, Tally.ERP 9 defaults On Total Excise Duty as the method of calculation. 9. Select Not Applicable in Rounding Method field The completed Secondary Education Cess CENVAT ledger appears as shown
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Creating Masters
When the option Assessable Value Calculation (for Excise /VAT) is set to Yes the Value given against this ledger in the sales/Purchase voucher will be used to calculate the assessable value of the stock item to compute the excise duty or VAT
5. In Apportion for field select Excise & VAT 6. In Method of Apportion select Based on Value from Method of Apportion List
Example 1: Based on Value In case of Based on Value method of apportion, expenses will be apportioned based on the Value of the Stock item.
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Creating Masters
Apportionment of Packing Charges to Item X: 5,000*50,000/1,10,000 =2272.73 Apportionment of Packing Charges to Item Y: 5,000*60,000/1,10,000 = 2727.27 Assessable Value of Item X (52,272.73) = Value of Item X (50,000) +Packing Charges (2,272.73) Assessable Value of Item Y (62,727.27) = Value of Item Y (60,000) +Packing Charges (2,727.27)
Example 2: Based on Quantity In case of Based on Quantity method of apportion, expenses will be apportioned based on the quantity of the Stock item.
Packing charges is 5,000 Quantity of Item X is 200 and Value is 20,000 Quantity of Item Y is 600 and Value is 60,000 Apportionment of Packing Charges to Item X: 5,000*200/800 =1,250 Apportionment of Packing Charges to Item Y: 5,000*600/800 = 3,750 Assessable Value of Item X (21,250) = Value of Item X (20,000) +Packing Charges (1,250) Assessable Value of Item Y (63,750) = Value of Item Y (60000) +Packing Charges (3,750)
Creating Masters
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Creating Masters
9. Set Print after saving Voucher to Yes 10.In Default Print Title enter the print title as EXCISE INVOICE 11. Set No to Is Tax Invoice. 12.Specify the declaration, if any.
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Creating Masters
Enable Use for Excise and select Aqua Ltd. as the Default Excise Unit.
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Creating Masters
In this scenario we are Creating the Manufacturing Journal to account the manufacture of Packed Drinking Water
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Creating Masters
The Tariff Classification created with the option Both will be displayed for selection, during the creation of Stock Items on which Excise or VAT is applicable. Selection of the option VAT will restrict the display of Tariff classification only for the Stock items on which the VAT is applicable. The option VAT or Both will prompt the user to provide details of Commodity Code, Schedule Number and Schedule Serial Number.
3. Enter the Tariff Classification Code e.g. 39233010 in HSN Code field
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Creating Masters
The Harmonized Commodity Description and Coding System (HS) of tariff nomenclature popularly known as Harmonised System of Nomenclature (HSN), is an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization.
4. In Notes field enter the details regarding the HSN Code selected
It is required to create separate Tariff classification for different stock items (falling under different chapters/heading/subheading/sub-sub heading)
Similarly create the below Tariff classifications as per the details provide Name of Tariff Classification Pet Bottle Caps Water Linear Low Density Polyethylene (LLDPE) Used For Excise Excise Excise HSN Code 39235010 22011010 39011010
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Creating Masters
Set the option Use ALTERNATE UNITS for Stock Items to Yes
Go to Gateway of Tally > Inventory Info. > Stock item > Create 1. Enter the name of the Stock Item e.g. Pet Bottles - 1Ltr in the Name field. 2. Select the Stock Group Name e.g. Primary in the Under field. 3. Select the unit of measurement e.g. U (Numbers) of the stock item in the Units field (Use Alt + C to create Unit of Measurement) 4. Select the unit of measurement e.g. Kg (Kilograms) of the stock item in the Alternate Units field (Use Alt +C to create Unit of Measurement) 5. Specify 1 Kg = 100 U in Where field.
Unit and Alternate Unit details provided in the Stock item master are only for the purpose of accounting the Stock items.
6. In Tariff Classification field select the applicable tariff classification e.g. Plastic Bottles from the List of Tariff Classifications
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Creating Masters
7. Enable Set/Alter Excise Details to Yes to display the Excise Details sub screen.
8. In the Excise Details Screen Excise Unit Name: By default Tally.ERP 9 displays Aqua Ltd. as Excise Unit Name.
In Tally.ERP 9 excise units (Dealer/manufacturer) created are identified as godowns. When the option Maintain Multiple Godowns/Excise Units is not enabled in F11: Features > Inventory Features (F2) by default Tally.ERP 9 identifies the excise unit name with the Default Godown named - Main Location To create more than one Excise Unit user needs to enable Maintain Multiple Godowns/Excise Units in F11: Features > Inventory Features (F2).
Reporting UOM: Select KG as Reporting UOM. All the reports will display the Stock item details based on the reporting UOM selected
As per Central Excise Act, all the reports relating to stock items are required to be indicated with the relevant Unit of Quantity as specified under Central Excise Tariff Act. The Applicable Unit of Quantity for Bottles is 'Kg (Kilograms)', so it is must to select Kg (Kilograms) as the Reporting UOM.
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Creating Masters
Set/Alter Duty Details: Set this field to Yes to view the Duty Details screen.
Valuation Type field select Ad Valorem from List of Valuation Type. Select Basic Excise Duty in the Type of Duty filed from the List of Excise Duty Classifications In Applicable From field mention the Date from when the specified Rate of Duty is applicable Specify the Rate of Duty as 10% Select the Education Cess as the second duty in the Type of Duty filed from the List of Excise Duty classifications In Applicable From field mention the Date from when the specified Rate of Duty is applicable
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Creating Masters
Specify
the Rate of Duty as 2% Select the Secondary Education Cess as the third duty in the Type of Duty filed from the List of Excise Duty classifications.
In
Applicable From field mention the Date from when the specified Rate of Duty is applicable Specify the Rate of Duty as 1%
to save Duty Details screen. In Excise Details screen, under Stock Item Type field select as Principal Input from the List of Item Types
Accept
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Creating Masters
9. Rate of VAT (%): in this field enter the Rate of VAT applicable for the Stock Item e.g. 4%
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Creating Masters
Similarly create the below Stock Item - Raw Materials as per the details provided
Name of Stock Item Water container 20 ltrs Units Tariff classification Plastic Bottles Reporting UOM KG Conversion Factor 1 KG = 20 U Pet Bottle Caps KG Conversion Factor 1 KG = 500 U Linear Low Density Polyethylene (LLDPE) Water KG Conversion Factor 1 KG = 1000 U L Ad Valorem Ad Valorem Ad Valorem Valuation Type Ad Valorem Excise Duties Applicable with Rate Basic Excise Duty - 10% Education Cess - 2% SHE Cess - 1% Basic Excise Duty - 10% Education Cess - 2% SHE Cess - 1% Basic Excise Duty - 10% Education Cess - 2% SHE Cess - 1% Basic Excise Duty - 10% Education Cess - 2% SHE Cess - 1% Principal Input 0% Principal Input 5% Principal Input 5% Stock Item Type Principal Input Rate of VAT 5%
U Alternate Unit (Kg) 1Kg = 20U U Alternate Unit (Kg) 1Kg = 500U
Bottle caps
Natural Water
Set the option Allow ADVANCED entries in Masters to Yes Set the option Allow Component list details (Bill of Materials) to Yes
Go to Gateway of Tally > Inventory Info. > Stock item > Create 1. 2. 3. 4. Enter the name of the Stock Item e.g. AquaPure - 1 Ltr in the Name field. Select the Group Name e.g. Primary in the Under field. Select the unit of measurement e.g. L (Litres) of the stock item in the Units field Select the unit of measurement e.g. Box of the stock item in the Alternate Units field (Use Alt +C to create Unit of Measurement) 5. Specify 1 Box = 24 L in Where field.
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Creating Masters
Unit and Alternate Unit details provided in the Stock item master are only for the purpose of accounting the Stock items.
6. Enable Set Components (BoM) to Yes and press enter to view Stock ltem Multi Components (M BoM) screen 7. In Stock Item Multi Components (M BOM) screen Under Name of BOM specify component list Name - Standard and press enter to view Stock Item Components (BOM) screen
Name: By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name field. Components of: In this field application displays the Name of the Stock Item for which the components are defined. Unit of manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list. Item: In this field identify the raw materials which are required to manufacture the finished goods Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods
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Creating Masters
8. Press Enter to save the Stock Item Components screen. 9. In Tariff Classification field select the applicable tariff classification e.g. Water from the List of Tariff Classifications 10.Enable Set/Alter Excise Details to Yes to display the Excise Details sub screen.
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Creating Masters
11.In the Excise Details Screen Excise Unit Name: By default Tally.ERP 9 displays Aqua Ltd. as Excise Unit Name.
In Tally.ERP 9 excise units (Dealer/manufacturer) created are identified as godowns. When the option Maintain Multiple Godowns/Excise Units is not enabled in F11: Features > Inventory Features (F2) by default Tally.ERP 9 identifies the excise unit name with the Default Godown named - Main Location To create more than one Excise Unit user needs to enable Maintain Multiple Godowns/Excise Units in F11: Features > Inventory Features (F2).
Reporting UOM: select L (litres) as Reporting UOM. All the reports will display the Stock item details based on the reporting UOM selected.
As per Central Excise Act, in all the reports relating to stock items are required to be indicated with the relevant Unit of Quantity as specified under Central Excise Tariff Act. The Applicable Unit of Quantity for Mineral Water is 'L (Litres)', so it is must to select L (Litres) as the Reporting UOM.
Set/Alter Duty Details: Set this field to Yes to view the Duty Details screen.
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Creating Masters
In
valuation Type field Select MRP Based from the List of Valuation Type and press enter to view Excise MRP Rate Details. In Applicable From field mention the Date from when the specified Rate of Duty is applicable In MRP Rate field enter the Rate as Rs. 20 In Abatement field enter 48% as the abatement percentage.
Press
Enter to accept the Excise MRP Rate Details. In Excise Duty Details screen the Applicable Date, MRP and the Abatement defined in the Excise MRP Rate Details screen will be defaulted automatically. Select the Basic Excise Duty in the Type of Duty filed from the List of Excise Duty classifications In Applicable From field mention the Date from when the specified Rate of Duty is applicable Specify the Rate of Duty as 10% Select the Education Cess as the second duty in the Type of Duty filed from the List of Excise Duty classifications In Applicable From field mention the Date from when the specified Rate of Duty is applicable Specify the Rate of Duty as 2% Select the Secondary Education Cess as the third duty in the Type of Duty filed from the List of Excise Duty classifications.
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Creating Masters
In
Applicable From field mention the Date from when the specified Rate of Duty is applicable Specify the Rate of Duty as 1%
In Excise Details screen, under Stock Item Type field select as Finished Goods from the List of Item Types
Creating Masters
Define the Stock Item Components (BOM) under the option Set/ Alter Reporting BOM only when the Stock item has different Stock Item Components than the components defined under the BOM for Production. BOM Defined under this option is used only for reporting.
12.Rate of VAT (%): in this field enter the Rate of VAT applicable for the Stock Item e.g. 13.5%
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Creating Masters
Where Excisable Commodity attracts Additional duties of Excise and Special duties of Excise and so on, the same can activated as required from the List of Excise Duty Classifications.
of
Units
Reporting UOM L
Excise Duties Applicable with Rate Basic Excise Duty - 10% Education Cess - 2% SHE Cess - 1%
AquaSure 1Ltr
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Creating Masters
Unit and Alternate Unit details provided in the Stock item master are only for the purpose of accounting the Stock items.
6. Enable Set Components (BoM) to Yes and press enter to view Stock ltem Multi Components (M BoM) screen 7. In Stock Item Multi Components (M BOM) screen Under Name of BOM specify component list Name BOM - 1 and press enter to view Stock Item Components (BOM) screen
Name: By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name field. Components of: In this field application displays the Name of the Stock Item for which the components are defined. Unit of manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list. Item: In this field identify the raw materials which are required to manufacture the finished goods Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods
Creating Masters
8. Press Enter to save the Stock Item Components screen. 9. In Tariff Classification field select the applicable tariff classification e.g. Water from the List of Tariff Classifications 10.Enable Set/Alter Excise Details to Yes to display the Excise Details sub screen. 11.In the Excise Details Screen Excise Unit Name: By default Tally.ERP 9 displays Aqua Ltd. as Excise Unit Name.
In Tally.ERP 9 excise units (Dealer/manufacturer) created are identified as godowns. When the option Maintain Multiple Godowns/Excise Units is not enabled in F11: Features > Inventory Features (F2) by default Tally.ERP 9 identifies the excise unit name with the Default Godown named - Main Location To create more than one Excise Unit user needs to enable Maintain Multiple Godowns/Excise Units in F11: Features > Inventory Features (F2).
Reporting UOM: select L (litres) as Reporting UOM. All the reports will display the Stock item details based on the reporting UOM selected.
As per Central Excise Act, in all the reports relating to stock items are required to be indicated with the relevant Unit of Quantity as specified under Central Excise Tariff Act. The Applicable Unit of Quantity for Mineral Water is 'L (Litres)', so it is must to select L (Litres) as the Reporting UOM.
Tally.ERP 9 prompts the user to select the Conversion Factor only when the alternate Item is enabled and defined for stock item
Set/Alter Duty Details: Set this field to Yes to view the Duty Details screen. In Duty Details screen
In
valuation Type field Select Ad Quantum from the List of Valuation Type Select the Basic Excise Duty in the Type of Duty filed from the List of Excise Duty classifications In Applicable From field mention the Date from when the specified Rate of Duty is applicable Specify the Rate of Duty as Rs. 2 (per litre)
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Creating Masters
In case of Ad Quantum, duty is payable at the rate specified per Unit of Quantity. Example: Duty on Sugar is based on per Kg basis (Rs.3/Kg).
Select
the Education Cess as the second duty in the Type of Duty filed from the List of Excise Duty classifications In Applicable From field mention the Date from when the specified Rate of Duty is applicable Specify the Rate of Duty as Rs. 0.04 (per litre) Select the Secondary Education Cess) as the third duty in the Type of Duty filed from the List of Excise Duty classifications. In Applicable From field mention the Date from when the specified Rate of Duty is applicable Specify the Rate of Duty as Rs. 0.02 (per litre)
In Excise Details screen, under Stock Item Type field select as Finished Goods from the List of Item Types Set the option Set/ Alter Reporting BOM to No.
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Creating Masters
Define the Stock Item Components (BOM) under the option Set/ Alter Reporting BOM only when the Stock item has different Stock Item Components than the components defined under the BOM for Production. BOM Defined under this option is used only for reporting
12.Rate of VAT (%): in this field enter the Rate of VAT applicable for the Stock Item e.g. 13.5%
Where Excisable Commodity attracts Additional duties of Excise and Special duties of Excise and so on, the same can activated as required from the List of Excise Duty Classifications.
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1. 2. 3. 4.
6. Enable Set Components (BoM) to Yes and press enter to view Stock ltem Multi Components (M BoM) screen 7. In Stock Item Multi Components (M BOM) screen Under Name of BOM specify component list Name Standard BOM and press enter to view Stock Item Components (BOM) screen
Name: By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name field. Components of: In this field application displays the Name of the Stock Item for which the components are defined. Unit of manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list. Item: In this field identify the raw materials which are required to manufacture the finished goods Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods
Creating Masters
8. Press Enter to save the Stock Item Components screen. 9. In Tariff Classification field select the applicable tariff classification e.g. Water from the List of Tariff Classifications 10.Enable Set/Alter Excise Details to Yes to display the Excise Details sub screen. 11.In the Excise Details Screen Excise Unit Name: By default Tally.ERP 9 displays Aqua Ltd. as Excise Unit Name.
In Tally.ERP 9 excise units (Dealer/manufacturer) created are identified as godowns. When the option Maintain Multiple Godowns/Excise Units is not enabled in F11: Features > Inventory Features (F2) by default Tally.ERP 9 identifies the excise unit name with the Default Godown named - Main Location To create more than one Excise Unit user needs to enable Maintain Multiple Godowns/Excise Units in F11: Features > Inventory Features (F2).
Reporting UOM: Select L (litres) as Reporting UOM. All the reports will display the Stock item details based on the reporting UOM selected.
As Per Central Excise Act, in all the reports relating to stock items are required to be indicated with the relevant Unit of Quantity as specified under Central Excise Tariff Act. The Applicable Unit of Quantity for Mineral Water is 'L (Litres)', so it is must to select L (Litres) as the Reporting UOM.
Tally.ERP 9 prompts the user to select the Conversion Factor only when the alternate Item is enabled and defined for stock item
Set/Alter Duty Details: Set this field to Yes to view the Duty Details screen. In Duty Details screen
In
valuation Type field Select Ad Valorem from the List of Valuation Type Select the Basic Excise Duty in the Type of Duty filed from the List of Excise Duty classifications In Applicable From field mention the Date from when the specified Rate of Duty is applicable Specify the Rate of Duty as 10% Select the Education Cess as the second duty in the Type of Duty filed from the List of Excise Duty classifications
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Creating Masters
In
Applicable From field mention the Date from when the specified Rate of Duty is applicable Specify the Rate of Duty as 2% Select the Secondary Education Cess as the third duty in the Type of Duty filed from the List of Excise Duty classifications. In Applicable From field mention the Date from when the specified Rate of Duty is applicable Specify the Rate of Duty as 1%
In Excise Details screen, under Stock Item Type field select as Finished Goods from the List of Item Types Set the option Set/ Alter Reporting BOM to No
Define the Stock Item Components (BOM) under the option Set/ Alter Reporting BOM only when the Stock item has different Stock Item Components than the components defined under the BOM for Production. BOM Defined under this option is used only for reporting
12.Rate of VAT (%): in this field enter the Rate of VAT applicable for the Stock Item e.g. 13.5%
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Creating Masters
Where Excisable Commodity attracts Additional duties of Excise and Special Duties of Excise and so on, the same can activated as required from the List of Excise Duty Classifications.
Similarly create the Stock Item AquaEase - 20 Ltr with same Alternate Unit, conversion factor and Valuation Method (Ad Valorem)
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Lesson 3:
Excise Unit (Excise Factory for which the credit opening balance is accounted) Nature of Purchase (Credit availed on the inputs purchased from Manufacturer, First or Second Stage Dealer or Importer. Supplier Invoice Number/Bill of Entry & Date Description of Goods Quantity & Value of goods on which Credit is availed Amount of Credit Availed Name, address and Central Excise Registration number of supplier of such Inputs Name of the jurisdictional range / division / commissionerate of supplier of such Inputs
For this purpose, it is essential to record the above mentioned information in Tally.ERP 9, to facilitate utilising CENVAT Credit availed on the Inputs. Consider the following example to illustrate the accounting of CENVAT Credit Opening Balance
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Example 1: On 1-4-2011, Aqua Ltd has opening CENVAT Credit of Rs.47,380 (Total) on the following Raw materials purchased under different purchase bills.
Invoice No. & Date 152/10-11 Supplier Name Lamcy Manufacturers Name of Item Pet Bottles - 1Ltr Qty. 100000 Duty Type BED ED Cess SED Cess 2052/10-11 Shubh Manufacturer Pet Bottles - 1Ltr 200000 BED ED Cess SED Cess Bottle Caps 350000 BED ED Cess SED Cess Asses sable Value 150000 15000 15000 240000 24000 24000 87500 7000 7000 Rate of Duty 10% 2% 1% 10% 2% 1% 8% 2% 1% Amount 15,000 300 150 24,000 480 240 7,000 140 70
Supplier Name & Address Lamcy Manufacturers # 89 Peenya Industrial Area Bangalore Shubh Manufacturers # 658 Rajajinagar Industrial Area Rajajinagar Bangalore
Range Peenya
Division Yeshwanthp ur
Commissionerate Bangalore - II
Manufacturer
AESRD7485AXM002
Rajajinagar
Division II
Bangalore -I
To account the CENVAT Credit Opening Balance Go to Gateway of Tally > Inventory Info. > Update Excise Info. > CENVAT Opening Balance 1. Enter the Date on which the CENVAT Opening Balance is accounted.E.g.1-4-2011
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2. In Excise Unit field select the Excise Unit for which the CENVAT Opening balance entry is recorded. e.g. Aqua Ltd.
As Tally.ERP 9 allows to maintain accounts of Multiple Excise Units in a Single Company, in CENVAT Credit Opening Balance Journal Voucher Excise Unit field has been provided to select the appropriate Excise Unit.
3. In Nature of Purchase field select the Purchase Nature (whether purchase was from manufacturer/ First/ Second /Importer) for which the CENVAT credit is available. E.g Manufacturer
In case a company has CENVAT Credit opening balance against the purchases of different Nature - First Stage Dealer/Manufacturer/Importer/Second Stage Dealer then separate CENVAT Opening Balance entry for different Nature of Purchases has to be recorded.
4. To account opening balance of Basic Excise Duty credit, under Particulars select Basic Excise Duty (CENVAT) and view Excise Duty Allocation screen
While accounting CENVAT Opening Balance, in List of Ledger's only the CENVAT Type of ledgers will be displayed for selection
5. In Excise Duty Allocation screen Invoice No./Bill of Entry No. & Date: In this field enter the invoice number and Date of purchase of Raw materials on which CENVAT Credit is available and accounted as opening balance.
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Party Name: In this field select the supplier from whom the purchase was made. Name of Item: Select the Stock item for which credit is available and accounted as opening balance Quantity: Specify the Quantity on which CENVAT Credit is available Assessable Value: Enter the Assessable values of the stock item on which the credit to be calculated. Rate: In this field rate of duty defined in the item master will be defaulted, which can be changed. Amount: CENVAT Credit Amount will be calculated and displayed automatically.
Supports to account CENVAT opening Balance of multiple bills of different suppliers of same Nature of Purchase with different Raw Materials and Different Rate of Duty.
7. To account opening balance of Education Cess credit, under Particulars select Education Cess (CENVAT) and view Excise Duty Allocation screen 8. In Excise Duty Allocation screen Set the option Copy Details from Previous Duty Ledger (s) to Yes and press enter.
The 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.
If you do 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
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9. To account opening balance of Secondary Education Cess credit, under Particulars select Secondary Education Cess (CENVAT) and view Excise Duty Allocation screen 10.In Excise Duty Allocation screen Set the option Copy Details from Previous Duty Ledger (s) to Yes and press enter. The details like - Invoice Number/Bill of Entry No.& Date, Party Name, Name of Item, Quantity & Assessable Value (to calculate the Secondary Education Cess) & Cess Amount will be calculated displayed automatically. The completed Duty Details for Secondary Education Cess (CENVAT) will be displayed as shown
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CENVAT credit opening balance of Capital Goods can also be accounted as explained above. The CENVAT Credit Opening Balance entry recorded above will affect all the Excise Reports.
The above CENVAT Opening Balance entry will affect the following Excise Reports: 1. Computation: In Computation report the CENVAT Credit Opening balance accounted will be displayed under Balance Input Credit as CENVAT Credit on Inputs 2. Form ER 1: CENVAT Credit opening balance will be displayed under Serial Number 8 - Details of CENVAT Credit Taken and utilised in Box 1- Opening Balance. 3. CENVAT Credit Summary 4. CENVAT Availed 5. RG 23A Part I 6. RG 23A Part II 7. Abstract
Excise Unit (Excise Factory for which the duty opening balance is accounted) Nature of Removal (Duty payable on the Finished goods or Inputs removed for Domestic sales/Captive Consumption/Export -Duty Chargeable/Removal as such/Special Rate). Sales Invoice Number/Bill of Entry & Date Description of Goods Quantity & Value of goods on which duty is payable Amount of duty payable Name, address and Central Excise Registration number of customer to whom sales is made Name of the jurisdictional range / division / commissionerate of customer to whom sales is made
For this purpose, it is essential to record the above mentioned information in Tally.ERP 9, to facilitate payment of Duty on the Finished goods removed.
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Consider the following example to illustrate the accounting of Excise Duty Opening Balance, Example 2: On 1/4/2011, Aqua Ltd has opening Excise Duty of Rs.2,02,395 (Total) on the following Raw materials purchased under different purchase bills.
Qty. 18,000
Assessable Value 540000 15000 15000 1125000 24000 24000 300000 7000 7000
Amount 54,000 1080 540 1,12,500 2,250 1,125 30,000 600 300
AQ/1025/ 10-11
National Distributors
AquaKing 20Ltr
25,000
AquaPure - 1Ltr
10,000
Customer Name & Address National Distributors # 9685 5th Main BTM 3rd Block Bangalore
Range Madiwala
Divisio n Division IV
Commissionerate Bangalore -I
To account Excise Duty Opening Balance Go to Gateway of Tally > Inventory Info. > Update Excise Info. > Excise Opening Balance 1. Enter the Date on which the Excise Opening Balance is accounted.E.g.1-4-2011 2. In Excise Unit field select the Excise Unit for which the CENVAT Opening balance entry is recorded. e.g. Aqua Ltd.
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As Tally.ERP 9 allows to maintain accounts of Multiple Excise Units in a Single Company, in Excise Duty Opening Balance Journal Voucher Excise Unit field has been provided to select the appropriate Excise Unit.
3. In Nature of Removal field select the sales Nature (whether sale was a Domestic/ Captive Consumption/Removal as such / Special Rate/Export - Duty Chargeable) for which the Excise Duty is payable. E.g. Domestic
In case a company has Excise Duty opening balance against sales of different Nature of Removal - Domestic/ Captive Consumption/Removal as such / Special Rate etc. then separate Excise Opening Balance entry for different Nature of Removal has to be recorded.
4. To account opening balance of Basic Excise Duty, under Particulars select Basic Excise Duty @ 10% and view Excise Duty Allocation screen
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While accounting Excise Opening Balance, in List of Ledger's only the Excise Type of ledgers will be displayed for selection.
5. In Excise Duty Allocation screen Invoice No./Bill of Entry No. & Date: In this field enter the invoice number and date of sale of finished good on which excise duty has been charged
Party Name: In this field select the supplier to whom the sale was made. Name of Item: Select the Stock item against which duty is payable and accounted as opening balance Quantity: Specify the Quantity on which Duty is payable Assessable Value: Enter the Assessable values of the stock item on which the excise duty to be calculated. Rate: In this field rate of duty defined in the item master will be defaulted, which can be changed if rate of duty is different. Amount: Excise duty Amount will be calculated and displayed automatically.
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Supports to account Excise Opening Balance of multiple bills of different customers of same Nature of Removal with different Finished goods and Different Rate of Duty.
6. Press Enter to save Excise Duty Allocation screen 7. To account opening balance of Education Cess, under Particulars select Education Cess @ 2% and view Excise Duty Allocation screen 8. In Excise Duty Allocation screen Set the option Copy Details from Previous Duty Ledger (s) to Yes and press enter.
The 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.
If you do not want to copy the details of previous duty ledger retain No to the option Copy Details from Previous Duty Ledger(s) & manually enter the Excise Duty details for the ledger selected.
The completed Duty Details for Education Cess @ 2% will be displayed as shown
9. To account opening balance of Secondary Education Cess, under Particulars select Secondary Education Cess @ 1% and view Excise Duty Allocation screen
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10.In Excise Duty Allocation screen Set the option Copy Details from Previous Duty Ledger (s) to Yes and press enter. The details like - Invoice Number/Bill of Entry No.& Date, Party Name, Name of Item, Quantity & Assessable Value (to calculate the Secondary Education Cess) & Cess Amount will be calculated displayed automatically. The completed Duty Details for Secondary Education Cess @ 1% will be displayed as shown
11.Press Enter to accept. The above Excise Opening Balance entry will be displayed in
Excise Computation report under Excise Duty Payable against Regular Rate PLA Register
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Step 2: Record a Purchase Order To record a Purchase Order In F11: Features > F2: Inventory Features
Go to Gateway of Tally > Accounting Vouchers > F4: Purchase Order In Voucher Type sub form select Ex-Purchase Order as the voucher type Enter the Date as 2-4-2011 In the Party A/c Name field select Lamcy Manufacturers from the List of Ledger Accounts In the Order No. field enter the order number as P.O-001 In the Purchase Ledger field select Purchase of Raw Materials In the VAT/Tax Class field the VAT Class will be defaulted automatically as defined in the ledger master 7. In the Name of Item field select Pet Bottles - 1Ltr and press enter to view the Item Allocation screen 8. In the Item Allocation screen In Due on filed enter the date of delivery of the stock e.g. 20-4-2011
1. 2. 3. 4. 5. 6.
In the Quantity field enter 50000 In the Rate field enter the rate as Rs.2 Amount will be calculated and displayed automatically.
9. Select Basic Excise Duty @ 10% ledger, the Rate of Duty and Duty amount will be defaulted automatically
To avail CENVAT credit, in the same voucher you can select CENVAT type of duty ledgers
10.Similarly select Education Cess @ 2% and Secondary Education Cess @ 1% ledgers 11.Select Input VAT @ 5% ledger. The VAT amount will be calculated and displayed automatically
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3. Enter the Date as 4-4-2011 4. In Supplier Invoice No. field enter the Invoice No. as SI/336 5. In Party's A/c Name field select the supplier i.e. Swastik Water Suppliers from the List of Ledger Accounts 6. In Nature of Purchase field Manufacturer is displayed automatically 7. In Purchase Ledger field select the ledger Purchase of Raw Materials from List of Ledger Accounts 8. In VAT/Tax Class field select the VAT class as Not Applicable 9. In Name of Item field select the Stock Item i.e. Natural Water 10.In Stock Item Allocation screen, in Quantity field enter the quantity as 10,00,000 11.In Rate field enter the rate as Rs. 2 12.Amount will be displayed automatically. 13.Select Duty Ledger i.e. Basic Excise Duty @ 10%. Amount will be calculated and displayed automatically. 14.Select Education Cess @ 2% and Secondary Education Cess @ 1% ledgers. Amount will be calculated and displayed automatically
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Input VAT Ledger is not selected as Natural water is exempted under VAT Act in Karnataka.
15. Set the option Show Statutory Details to Yes to view Statutory Details screen
16.In Statutory Details screen press Alt+F1 key or click on F1: Detailed to view details of duty calculation. Statutory Details screen appears as shown.
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In statutory details user can view Item/ ledger wise assessable value and Duty/ Tax calculations.
17.In Bill-wise Details screen select Type of Ref as New Ref and in other fields retain the default details.
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To avail Cenvat Credit, create the ledgers under Current Assets by selecting duty/ tax type as CENVAT in the Type of Duty/Tax field.
When the CENVAT Credit is not availed the Duty Ledgers selected won't display the ledger balance and duty amount will be apportioned to the Stock Item cost. Go to Gateway of Tally > Display > Account Books > Ledgers > select Basic Excise Duty @ 10%
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To view the duty apportionment to Stock Item Go to Gateway of Tally > Display > Inventory Books > Stock Item > Natural Water > Stock item Monthly Summary > Stock Vouchers In F12: Configuration
Purchase rate of natural Water is Rs.2 per Litre. Observe, in the above screen stock item rate is displayed as 2.21 which includes the excise duty amount.
CENVAT Credit of the above transaction can be availed at any point of time by recording a CENVAT credit availing Debit Note.
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16.Select CENVAT Type of Duty Ledger to avail the credit. Amount for Basic Excise duty (CENVAT) will be displayed automatically 17.Select Education Cess (CENVAT) and Secondary Education Cess (CENVAT) ledgers to account the cess on duty. 18.Select Input VAT @ 5% as the VAT duty ledger. Amount will be displayed automatically 19.Set the option Show Statutory Details to Yes to view Statutory Details screen 20.In Statutory Details screen press Alt + F1: Detailed to view details of duty calculation. Statutory Details screen appears as shown
In Statutory Details user can view Item/ ledger wise assessable value and Duty/ Tax calculation.
21.In Bill-wise Details screen select Type of Ref as New Ref and in other fields retain the default details.
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When the CENVAT Credit is availed the Duty Ledgers selected will display the ledger balance and duty amount will not be apportioned to the Stock Item Rate. To check the duty ledger balance Go to Gateway of Tally > Display > Account Books > Ledgers > select Basic Excise Duty (CENVAT)
To view the non- apportionment of duty amount to stock item Rate Go to Gateway of Tally > Display > Inventory Books > Stock Item > Pet Bottles - 1 Ltr > Stock item Monthly Summary > Stock Vouchers In F12: Configuration
Observe, in Stock Vouchers report stock item rate is displayed as Rs.1 which is the actual purchase rate. I this case the duty amount is not apportioned to the Stock item.
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Record the Transaction in Excise Purchase Voucher Go to Gateway of Tally > Accounting Vouchers > F9: Purchases To alter the Duty Value in Excise Purchase, voucher has to be configured. To configure the purchase voucher a new configuration option has been provided. In F12: Configure (Purchase Invoice Configuration)
Set the option Allow modification in Duty for Purchase form Manufacturer to Yes
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1. Enter the Date as 6-4-2011 2. In Supplier Invoice No. field enter the Invoice No. as LM/2071 3. In Partys A/c Name field select the supplier i.e. Lamcy Manufacturers from the List of Ledger Accounts (Use Alt +C to create the party ledger). 4. In Nature of Purchase field the option Manufacturer is displayed automatically 5. In Purchase Ledger field select the ledger Purchase of Raw Materials from List of Ledger Accounts. 6. VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the purchase ledger, which can be changed. 7. In Name of Item field select the Stock Item i.e. Pet Bottles 1 Ltr. 8. In Item Allocations screen, in Quantity field enter the quantity as 2,50,000 9. In Rate field enter the rate as Rs. 1. Amount will be displayed automatically. 10.Select Bottle Caps as second item and specify Quantity as 2,47,265 and Rate as Rs. 0.25. 11.To avail the cenvat credit, select CENVAT type of ledgers - Basic Excise Duty (CENVAT) ledger and press enter to view Excise Duty allocation screen
In Excise Duty Allocation screen for stock Item - Bottle Caps, Duty Amount is displayed as 6181.63 which is Rounded off as 6182 to make the total Basic Excise Duty as 31,182
As per the invoice received from Lamcy Manufacturers the Basic Excise Duty is rounded off and is specified as 31182. Hence while accounting the credit, duty value is altered to arrive at the actual duty as per the invoice.
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12.Select Education Cess (CENVAT) ledger and press enter to view Excise Duty Allocation screen In Excise Duty Allocation screen for stock Item - Bottle Caps, Duty Amount is displayed as 123.64 which is Rounded off as 124 to make the total Education Cess as 624
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13. Similarly, select Secondary Education Cess ledger. In Excise Duty Allocation screen for stock item - Bottle Caps, Duty Amount is displayed as 61.82 which is Rounded off as 62 to make the total Education Cess as 312. 14. Select the VAT ledger to account the input vat on the goods purchased. The completed Excise Purchase Voucher is displayed as shown
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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
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ii. Record a Purchase Voucher Go to Gateway of Tally > Accounting Vouchers > F9: Purchase 1. 2. 3. 4. 5. In Voucher Type sub form select Excise Purchases as the voucher type. Ensure that the Purchase Voucher is in Item Invoice Mode. Enter the Date as 6-4-2011 In Supplier Invoice No. field enter the Invoice No. as SD/4578. In Partys 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 the Item Allocation screen In Quantity field enter the quantity as 100
In Rate field enter the rate as Rs. 124 [Actual purchase rate (134.30) CENVAT Credit (10.30)]. Amount will be displayed automatically
11.Select Basic Excise Duty (CENVAT) ledger to view the Duty Details screen
To Avail the CENVAT Credit user needs to select CENVAT Type of Duty ledgers
12.In the Duty details screen In the fields Type of Ref and Name field the details will be defaulted automatically
In the Name of Item field select the Item Water Container 20ltrs In the Assessable Value field enter Rs. 10,000 (Assessable Value as per the Manufacturers invoice) In the Amount field the Duty Amount will be calculated and displayed based on the assessable value entered.
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13.Select Education Cess (CENVAT) ledger to view the Duty Details screen 14.The Duty Details screen appears as shown
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For the Education Cess (CENVAT) the Basic Excise Duty (CENVAT) amount is defaulted as the assessable value.
15.Select Secondary Education Cess (CENVAT) ledger to view the Duty Details screen. In the Duty Details screen accept the default details. 16.Select Input VAT @ 5% ledger. Amount will be displayed automatically 17.Set Show Statutory Details to Yes to view statutory details To view the calculation details press Alt+F1 or click on F1: Detailed button in the buttons bar
18.In the Bill-wise Details screen accept the default details. Enter the transaction details in the Narration field
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4.5.2 Avail CENVAT Credit on purchases (later by recording a separate Debit Note)
i.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 Type 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
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ii. Record a Purchase Voucher Go to Gateway of Tally > Accounting Vouchers > F9: Purchase 1. 2. 3. 4. 5. In Voucher Type sub form select Excise Purchases as the voucher type. Ensure that the Purchase Voucher is in Item Invoice Mode. Enter the Date as 6-4-2011 In Supplier Invoice No. field enter the Invoice No. as SD/4578. In Partys 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. In VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the purchase ledger, which can be changed. 8. In Name of Item field select the Stock Item i.e. Water Container 20 Ltrs. Enter the Quantity as 100 and Rate as Rs. 134.30 9. Select Input VAT @ 5% ledger. Amount will be displayed automatically 10. In the Bill-wise Details screen accept the default details and enter the Narration, if any The completed Excise Purchase voucher appears as shown
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iii. 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
Ensure the Debit Note is in Voucher Mode. If the Debit Note is in Invoice Mode press Ctrl + V keys or Click on V: As Voucher button in the Buttons bar.
2. 3. 4. 5. 6.
In Used For field CENVAT Availing will be displayed automatically In Excise Unit field select Aqua Ltd. In Nature of Purchase field select First Stage Dealer In Debit field select Basic Excise Duty (CENVAT) to view Excise Duty Allocation screen In Excise Duty Allocation screen In Type of Ref field select New Ref
In Name field enter the reference name. Here enter the reference name used in the purchase voucher i.e. SD/4578 In Party Name field select Shubh Distributors from the List of Ledger Accounts In the Name of Item field select Water Container 20 Ltrs In Quantity field enter 100 In the Assessable Value field enter Rs. 10,000 (i.e. the manufacturers sales value)
Excise Transactions
In the Rate field the rate of duty i.e. 10% defined in the ledger will be defaulted (if the rate of duty is not defined during ledger creation enter the applicable rate of duty) 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 Set the option Copy Details from Previous Duty Ledger (s) to Yes and press enter. The details like - Invoice Number/Bill of Entry No.& Date, Party Name, Name of Item, Quantity & Assessable Value (to calculate the Secondary Education Cess) & Cess Amount will be calculated displayed automatically. The completed Duty Details for Secondary Education Cess (CENVAT) will be displayed as shown
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9. Similarly, in Debit filed select Secondary Education Cess (CENVAT) to view Excise Duty Allocation screen 10.In Excise Duty Allocation screen Set the option Copy Details from Previous Duty Ledger (s) to Yes and press enter. The details like - Invoice Number/Bill of Entry No.& Date, Party Name, Name of Item, Quantity & Assessable Value (to calculate the Secondary Education Cess) & Cess Amount will be calculated displayed automatically.
11.In the Credit field select Purchase of Raw Materials ledger. In VAT/Tax Class screen select Not Applicable. 12.In the Inventory Allocation screen In Name of Item field select the stock item Water Container 20 Ltrs
In the Amount column enter the total amount (of Basic Excise Duty, Education Cess and Secondary Education Cess) Rs. 1030
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CENVAT Credit can be availed partially based on Assessable Value or on the quantity of stock item purchased.
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Go to Gateway of Tally > Inventory Info. > Stock item > Create 1. 2. 3. 4. 5. 6. Enter the name of the Stock Item e.g. Machinery in the Name field. Select the Stock Group e.g. Primary in Under field Select the unit of measurement e.g. U (Numbers) of the stock item in the Units field. In Tariff Classification field select Boilers (use Alt + C to create) Enable Set/Alter Excise Details to Yes to view Excise Details screen In the Excise Details screen Select the Excise Unit Name field select Aqua Ltd.
In the Reporting UOM field select U (Numbers) Enable the Set/Alter Duty Details to Yes to view Excise Duty Details screen In the Excise Duty Details screen the Valuation Type field select Ad Valorem In the Type of Duty field select Basic Excise Duty In the Applicable From field enter the date as 1-4-2011 In the Rate of Duty field enter the rate as 10% Similarly select Education Cess and Secondary Education Cess. In the Rate of Duty field enter the duty as 2% and 1% respectively In the Stock Item Type field select Capital Goods
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7. In the Rate of VAT field enter the rate as 5% 8. In the Costing Method field select At Zero Cost as the costing method
Machinery being capital goods the value of the capital goods should not appear in the Stock summary. The Costing Method - At Zero Cost does not display the value of the stock item in the Stock Summary.
Machinery being capital goods should not appear in the Stock summary, so the option Treat all Purchases as Consumed is set to Yes.
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10.Press Enter to save. 2. Create Fixed Asset Ledger Go to Gateway of Tally > Accounts Info. > Ledgers > Create 1. 2. 3. 4. 5. In the Name field enter Plant & Machinery as the name of the Ledger Select Fixed Assets as the group in the Under field Set Inventory values are affected to Yes Enable Used in VAT Returns to Yes to view VAT/Tax Class screen In the VAT/Tax Class screen select Purchases Capital Goods @ 5%
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3. Create Input VAT Ledger Create the Input VAT Ledger shown below
4. Create CENVAT Credit Control Ledger In the Name field enter Available CENVAT Credit on Capital Goods as the name of the Ledger. Select Current Assets as the group in Under field. In Type of Duty/Tax field select Not Applicable
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Go to Gateway of Tally > Accounting Vouchers > F9: Purchases 1. 2. 3. 4. 5. In Voucher Type sub form select Excise Purchases as the voucher type. Ensure that the Purchase Voucher is in Item Invoice Mode. Enter the Date as 7-4-2011. In Supplier Invoice No. field enter the Invoice No. as TI/6894 In Partys A/c Name field select the supplier i.e. Tricon Industries from the List of Ledger Accounts (use Alt+C to create the party ledger. Provide Excise details in party ledger) 6. In Nature of Purchase field the option Manufacturer is displayed automatically 7. In Name of Item field select the Stock Item i.e. Machinery 8. In Stock Item Allocation screen In Quantity field enter the quantity as 1
In Rate field enter the rate as Rs. 1,00,000. Amount will be displayed automatically.
9. In Accounting Details screen In Particulars field select Plant & Machinery ledger
In VAT/Tax Class field Purchases Capital Goods @ 4% will be displayed In the Amount column the total amount of the item will be displayed
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10.Select Basic Excise Duty @ 10% ledger, duty amount will be displayed automatically. 11.Similarly select Education Cess @ 2% and Secondary Education Cess @ 1% ledgers 12.Select Input VAT @ 5% - Capital Goods ledger. VAT amount will be calculated and displayed automatically. 13.Set Show Statutory Details to Yes to view the Statutory Details. 14.In the Bill-wise Details screen accept the default bill allocation. 15.Enter Narration if any The completed Excise Purchase voucher is displayed as shown
As on capital goods purchases user can avail only 50% of the credit in current financial year and 50% should be transferred to current asset account. Currently there is no provision to avail partial credit and transfer the balance 50% credit to control account in Purchase Voucher. To satisfy all the above conditions, in purchase voucher select the Excise duty ledgers instead of CENVAT ledgers so that, the total excise amount gets allocated to the Fixed Asset Ledger. Later by recording a adjustment entry the credit amount can be transferred to a control account to claim 50% credit in current financial year and remaining 50% credit in subsequent years
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5. Record a Journal Voucher To transfer the eligible credit amount of Capital Goods from Fixed Asset Ledger to Current Asset Ledger Go to Gateway of Tally > Accounting Vouchers > F7: Journal 1. In Debit field select Available CENVAT Credit on Capital Goods (CENVAT Credit Control) ledger 2. In Debit Amount field enter Rs. 10,300 (the total eligible credit amount on capital goods) 3. In Credit field select Plant & Machinery ledger (to transfer the CENVAT Credit amount from the asset ledger) and press enter to view Inventory Allocation screen 4. In Inventory Allocation screen In Name of Item field select Machinery
In Amount filed specify Rs. 10300 (the total eligible credit amount on capital goods)
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5. Press Enter to save. 6. Record a Debit Note (to avail CENVAT Credit) CENVAT Credit Can be availed at the time of accounting the purchase or later. In this scenario CENVAT Credit is availed on 7-4-2011. Go to Gateway of Tally > Accounting Vouchers > F9: Debit Note 1. In Change Voucher Type screen in Class field select CENVAT Availing from the Voucher Class List 2. Enter the Date as 7-4-2011 3. In Used For field CENVAT Availing will be displayed automatically
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4. 5. 6. 7.
In Excise Unit field select Aqua Ltd. In Nature of Purchase field select Manufacturer In Debit field select Basic Excise Duty (CENVAT) to view Excise Duty Allocation screen In Excise Duty Allocation screen In Type of Ref field select New Ref
In Name field enter the reference name. Here enter the reference name used in the purchase voucher i.e. TI/6894 In Party Name field select Tricon Industries from the List of Ledger Accounts In the Name of Item field select Machinery In Quantity field enter 1 In the Assessable Value field enter Rs.1,00,000 In the Rate field the rate of duty i.e. 10% defined in the ledger will be defaulted (if the rate of duty is not defined during ledger creation enter the applicable rate of duty) In Amount field enter the duty amount of Rs. 5,000.
As per law, only 50% of the duty paid on capital goods can be availed as CENVAT credit in the same financial year in which the capital goods is purchased. To calculate the partial CENVAT Credit here, enter the credit amount in Amount column.
8. In Debit field select Education Cess (CENVAT) to view Excise Duty Allocation screen
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9. In Excise Duty Allocation screen Set the option Copy Details from Previous Duty Ledger (s) to Yes and press enter. The details like - Invoice Number/Bill of Entry No.& Date, Party Name, Name of Item, Quantity & Assessable Value (to calculate the Secondary Education Cess) & Cess Amount will be calculated displayed automatically. The completed Duty Details for Secondary Education Cess (CENVAT) will be displayed as shown
10.Similarly, in Debit filed select Secondary Education Cess (CENVAT) to view Excise Duty Allocation screen Set the option Copy Details from Previous Duty Ledger (s) to Yes and press enter. The details like - Invoice Number/Bill of Entry No.& Date, Party Name, Name of Item, Quantity & Assessable Value (to calculate the Secondary Education Cess) & Cess Amount will be calculated displayed automatically. 11. In the Credit field select Available CENVAT Credit on Capital Goods ledger to view Excise Duty Allocation screen 12.In the Excise Duty Allocation screen Select Agst Ref in Type of Ref field
In Name field select bill TI/6894 dated 7-4-2011 (Basic Excise Duty @ 10%) from the List of Pending Tax Bills In the Amount field enter Rs. 5000 (is the amount which is availed as CENVAT Credit against the Basic Excise Duty) Select Agst Ref in Type of Ref field In Name field select bill TI/6894 dated 7-4-2011 (Education Cess @ 2%) from the List of Pending Tax Bills In the Amount field enter Rs.100 (is the amount which is availed as CENVAT Credit against the Education Cess) Select Agst Ref in Type of Ref field In Name field select bill TI/6894 dated 7-4-2011 (Secondary Education Cess @ 1%) from the List of Pending Tax Bills In the Amount field enter Rs.50 (is the amount which is availed as CENVAT Credit against the Secondary Education Cess)
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Create Excise Stock Journal Record Excise stock Journal Voucher (Manufacture of Finished Goods)
Example 8: On 9-4-2011 Aqua Ltd. Manufactured 20,000 Litres of AquaPure 1 Ltr and 40,000 Litres of AquaSure 1 Ltr using common Raw Materials (Natural Water, Pet Bottles 1ltr and Bottle Caps) For the manufacture of 20,000 Ltrs of AquaPure 1 Ltr and 40,000 Ltr of AquaSure 1 Ltr following Raw Materials are issued Raw Material Natural Water Pet Bottles 1ltr Bottle Caps Create Excise Stock Journal Voucher Type Go to Gateway of Tally > Accounts Info. > Voucher Types > Create
In Name field mention the name as Excise Stock Journal In Type of Voucher field select the voucher type as Stock Journal Enable the option Use for Excise to Yes Select Aqua Ltd. in Default Excise Unit field.
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Record Excise stock Journal Voucher (Manufacture of Multiple Finished Goods) Go to Gateway of Tally > Inventory Vouchers > F7: Stock Journal 1. In Change Voucher Type screen select Excise Stock journal form the List of Types 2. Enter the Date as 9-4-2011 3. Under Source (Consumption) column In Name of Item field select Natural Water
In Godown field select Aqua Ltd. In Quantity field specify the quantity as 60000 Rate and Amount fields will be updated automatically. Similarly select Pet Bottles 1ltr and Bottle Caps. Specify the Quantity.
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4. In Destination (Production) column Select the Finished goods - AquaPure - 1 Ltr in Name of Item filed
Specify 20,000 in Quantity field Similarly select AquaSure - 1 Ltr in Name of Item field and specify the Quantity manufactured as 40,000
Excise Transactions
Excise Stock Journal voucher allows the users to account even the By-products manufactured in the process of Production.
You can view the details of manufacture of goods Stock Journal in Daily Stock Register.
Enter the Date as 11-4-2011 Enter the Ref details as AQ/689 In Excise Unit field Tally.ERP 9 displays Aqua Ltd., as selected during voucher type creation Excise Book Name field displays the name of the excise invoice book (Aqua/Rule11/ Book1/11-12) created for the Excise Unit 7. Serial No. field displays the Rule 11 invoice Number e.g. Aqua/101/11-12 8. In Party A/c Name field select Universal Distributors from the List of Ledger Accounts 9. In Party Details sub form Despatch/Order Details: Under these two sections enter the Despatch and Order Details
3. 4. 5. 6.
Sl.No. in PLA /RG-23: In this filed enter the Sl.No. in PLA /RG-23 register as 1 Date & Time of Invoice: In this field enter the time Date of Invoice. Tally.ERP 9 by default displays the system time and date in this field which can be changed
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Date & Time of Removal: In this field enter the Time & Date of Removal of Goods. Tally.ERP 9 by default displays the system time and date in this field which can be changed
As per Central Excise Invoice System, in all the sales invoice time and date of removal has to be printed.
Buyer Details: In this section Tally.ERP 9 by default displays the details provided during buyer ledger creation, which can be changed.
In Tally.ERP 9 user can track the Delivery Notes in Rule 11 Invoice, if the goods are delivered through delivery note and Rule 11 Invoice is generated after the delivery of the goods.
10.In Nature of Removal field select the option Domestic from the list of Types of Removals
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It is must to define the nature of removal in Rule 11 Invoice. Domestic will be selected if the removal is for domestic Sales. Export is selected when the goods are removed for Export Exempt is selected when the sales is a exempt sales. In case of exempt sales user needs to enter he notification number under which the exemption is provided Special Rate is selected when the sales is made to the customer at special rate of Duty other than the standard rate of Duty.
11. In Sales Ledger field select the ledger Sales @ 13.5% from the List of Ledger Accounts 12.VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the sales ledger, which can be changed. 13.In Name of Item field select the Stock Item i.e. AquaPure - 1Ltr 14.In Quantity field enter the quantity as 1,00,000 15.In Rate field enter the rate as Rs. 20 16.Amount will be displayed automatically 17.Select Duty Ledger i.e. Basic Excise Duty @ 10%. Amount will be calculated and displayed automatically. 18.Select Education Cess @ 2% and Secondary Education Cess @ 1% ledgers. Amount will be calculated and displayed automatically 19.Select Output VAT @ 5% as the Vat duty ledger. Amount will be displayed automatically 20.Set the option Show Statutory Details to Yes to view Statutory Details screen
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21.In Statutory Details screen press Alt + F1: Detailed to view details of duty calculation. Statutory Details screen appears as shown.
In statutory details user can view Item/ ledger wise assessable value and Duty/Tax calculations. For the stock item AquaPure - 1Lt, valuation Type selected is MRP Based, MRP is Rs.20/L and the Abatement allowed is 48%. Assessable Value: Sales Quantity X Rate= Total Amount - Abatement (Total Amount X 48/100) Rs. 10,40,000: 100000 X20 = 20,00,000 - 9,60,000 (20,00,000 X 48/100)
22. In Bill-wise Details screen select Type of Ref as New Ref and in other fields retain the default details.
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Printing Excise Sales Invoice The Voucher Printing screen appears as shown since, Print after saving option is enabled in Ex - Sales Voucher Type, if not enabled press Alt+P from voucher alteration screen.
Press F12: Configure to view the Invoice Printing Configuration screen Enable the following Options
Print Excise Duty Details of Items Print Tax Analysis of Items Print VAT/CST Analysis of Items
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Press Alt+I: With Preview and accept Yes to view the print preview of Sales Excise Invoice. The preview of Excise Sales Invoice appears as shown below:
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4.10 Rule 11 Invoice for Stock Items Falling Under Different Valuation Type
In Tally.ERP 9, user can account different stock items falling under different valuation type in single sales voucher. Example 10: On 12-4-2011 Aqua Ltd. sold the following Stock Items to Universal Distributors. Stock items AquaPure - 1 Ltr AquaMini - 200 ml AquaKing - 20 Ltr Quantity 20000 4000 3000 Rate Rs. 20 Rs. 5 Rs. 60
Here we are selling AquaPure - 1 Ltr (MRP Based), AquaMini - 200 ml (Ad Quantum) and AquaKing - 20 Ltr (Ad Valorem) in single sales voucher. To create a Sales Voucher Go to Gateway of Tally > Accounting Vouchers > F8: Sales 1. 2. 3. 4. 5. 6. In Voucher Type sub form select Ex - Sales as the voucher type Ensure that the Sales Voucher is in Item Invoice Mode Enter the Date as 12-4-2011 Enter the Ref details as AQ/726 In Excise Unit field Tally.ERP 9 displays Aqua Ltd., as selected during voucher type creation Excise Book Name field displays the name of the excise invoice book (Aqua/Rule11/Book1/ 11-12) created for the Excise Unit 7. Serial No. field displays the Rule 11 invoice Number e.g. Aqua/102/11-12 8. In Party A/c Name field select Universal Distributors from the List of Ledger Accounts 9. In Party Details sub form Despatch/Order Details: Under these two sections enter the Despatch and Order Details
Sl.No. in PLA /RG-23: In this filed enter the Sl.No. in PLA /RG-23 register as 2 Date & Time of Invoice: In this field enter the time Date of Invoice. Tally.ERP 9 by default displays the system time and date in this field which can be changed Date & Time of Removal: In this field enter the Time & Date of Removal of Goods. Tally.ERP 9 by default displays the system time and date in this field which can be changed Buyer Details: In this section Tally.ERP 9 by default displays the details provided during buyer ledger creation, which can be changed.
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10.In Nature of Removal field select the option Domestic from the list of Types of Removals 11.In Sales Ledger field select the ledger Sales @ 13.5% from the List of Ledger Accounts 12.VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the sales ledger, which can be changed. 13.In Name of Item field select the Stock Item i.e. AquaPure - 1Ltr 14.In Quantity field enter the quantity as 20,000 15.In Rate field enter the rate as Rs. 20. Amount will be displayed automatically 16.In Name of Item field select the Stock Item i.e. AquaMini - 200 ml as the second Item 17.Enter 4000 as Quantity and Rs. 5 as Rate 18.In Name of Item field select the Stock Item i.e. AquaKing - 20 Ltr as the third Item 19.Enter 3000 as Quantity and Rs. 60 as Rate 20.Select Duty Ledger i.e. Basic Excise Duty @ 10%. Amount will be calculated and displayed automatically. 21.Select Education Cess @ 2% and Secondary Education Cess @ 1% ledgers. Amount will be calculated and displayed automatically 22.Select Output VAT @ 13.5%. Amount will be calculated and displayed automatically. 23.Set the option Show Statutory Details to Yes to view Statutory Details screen. 24.In Statutory Details screen press Alt + F1: Detailed to view details of duty calculation. Statutory Details screen appears as shown.
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In statutory details user can view Item/ ledger wise assessable value and Duty/Tax calculations.
For the stock item AquaPure - 1Ltr, valuation Type selected is MRP Based, MRP is Rs.20/L and the Abatement allowed is 48%.
Assessable Value: Sales Quantity X Rate= Total Amount - Abatement (Total Amount X 48/ 100) Rs. 2,08,000: 20,000 X 20 = 4,00,000 - 1,92,000 (4,00,000 X 48/100)
On the Assessable Value (2,08,000) BED is calculated @ 10%. Education Cess @ 2% and Secondary Education Cess @ 1% is calculated on BED For the Stock Item AquaMini - 200ml, Valuation Type selected is Ad Quantum (duty is calculated on quantity)
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BED is defined @ 2/L (on the Reporting UOM - Litre), Education Cess @ 0.04/L (2% of Rs. 2) and SHE Cess @ 0.02/L (1% of Rs.2)
BED for AquaMini - 200ml is calculated on (4000*0.200ml) 800 litres (800*2 = 1600) Education Cess for AquaMini - 200ml is calculated on 800 litres (800*0.04 = 32) Secondary Education Cess is calculated for AquaMini - 200ml is calculated on 800 litres (800*0.02 = 16)
For the Stock Item AquaKing - 20 Ltr, Valuation Type selected is Ad Valorem BED @ 10% is calculated on the Transaction Amount/Assessable Value of Rs. 1,80,000 (180000*10/100 = 18,000) Education Cess @ 2% and Secondary Education Cess @ 1% is calculated on BED 25.In Bill-wise Details screen select Type of Ref as New Ref, Name as AQ/726 and in other fields retain the default details. The completed Excise Sales Voucher is displayed as shown
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10.In Nature of Removal field select the option Domestic from the list of Types of Removals 11.In Sales Ledger field select the ledger Sales @ 13.5% from the List of Ledger Accounts 12.VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the sales ledger, which can be changed. 13.In Name of Item field select the Stock Item i.e. AquaKing - 20Ltr 14.In Quantity field enter the quantity as 1,000 15.In Rate field enter the rate as Rs. 70 16.In Name of Item field select the Stock Item i.e. AquaEase - 20Ltr 17.In Quantity field enter the quantity as 200 and Rate as Rs.100 18.Select the expense ledger - Packing Charges and enter Rs. 6000 in Amount field 19.Select Duty Ledger i.e. Basic Excise Duty @ 10%. Amount will be calculated and displayed automatically. 20.Select Education Cess @ 2% and Secondary Education Cess @ 1% ledgers. Amount will be calculated and displayed automatically 21.Select Output VAT @ 4% as the Vat duty ledger. Amount will be displayed automatically 22.Set the option Show Statutory Details to Yes to view Statutory Details screen 23.In Statutory Details screen press Alt + F1: Detailed to view details of duty calculation. Statutory Details screen appears as shown.
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In statutory details user can view that the parking charges being apportioned to stock items to arrive at the assessable value to calculate the excise duty/VAT. Packing charges is 6,000 Value of AquaKing - 20Ltr is 70,000 Value of AquaPure - 20Ltr is 20,000 Apportionment of Packing Charges to AquaKing-20Ltr: 6,000*70,000/90,000 = 4666.67 Apportionment of Packing Charges to AquaPure-20Ltr: 6,000*20,000/90,000 = 1,333.33 Assessable Value of AquaKing - 20Ltr (74,666.67) = Value of AquaKing-20Ltr (70,000) +Packing Charges (4666.67) Assessable Value of AquaPure - 20Ltr (21,333.33) = Value of AquaPure-20Ltr (20,000) +Packing Charges (1,333.33)
24.In Bill-wise Details screen select Type of Ref as New Ref and in other fields retain the default details. The completed Excise sales voucher is displayed as shown
Excise Transactions
11. In the Notification Number field enter the notification number EB/20/2011-12. In Notification Type field select Tariff as the type of notification. 12. In Sales Ledger field select the ledger Sales @ 13.5% from the List of Ledger Accounts. 13. VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the sales ledger, which can be changed. 14. In Name of Item field select the Stock Item i.e. AquaKing - 20Ltr 15. In Quantity field enter the quantity as 1,000 16. In Rate field enter the rate as Rs. 100. Amount will be calculated automatically. 17. Select Duty Ledger i.e. Basic Excise Duty @ 16%. to view Excise Duty Allocation screen. in the Duty Details screen alter the Rate of Duty to 8%. Amount will be calculated and displayed automatically based on the Rate entered
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In the sales voucher screen, the rate of duty in Rate field displays as 10% (Which is captured from Stock Item), alter the rate to 8%
18.Select Education Cess @ 2% and Secondary Education Cess @ 1% ledgers. Amount will be calculated and displayed automatically. Select Output VAT @ 13.5% as the VAT duty ledger. Amount will be displayed automatically. The completed Excise Sales voucher is displayed as shown
Excise Transactions
The input/capital goods are not required by the manufacturer The prospective is willing to pay more Excess Supply Change in Production plan
Inputs or Capital Goods can be removed from factory of manufacturer on payment of Duty at the rate applicable on such goods on the date of removal. Tally.ERP 9 allows to record the Removal as Such transactions and captures the details of credit adjusted against the duty paid on removal of goods in appropriate reports and Form ER- 1. Example 13: on 15-4-2011 Aqua Ltd. removed (as such) following inputs by paying Excise Duty @ 10% along with Education Cess @ 2% and Secondary Education Cess @ 1% to sell to Lamcy Manufacturers Stock items Pet Bottles - 1Ltr Water Container - 20Ltr Quantity 25000 2500 Rate Rs. 5 Rs. 10
1. Record the Transaction in Excise - Sales Voucher Go to Gateway of Tally > Accounting Vouchers > F8: Sales In Voucher Type sub form select Ex Sales as the voucher type. Ensure that the Sales Voucher is in Item Invoice Mode. Enter the Date as 15-4-2011 Enter the Ref details as AQ/1003 In Excise Unit field Tally.ERP 9 displays Aqua Ltd., as selected during voucher type creation. Excise Book Name field displays the name of the excise invoice book (Aqua/Rule11/Book1/ 11-12) created for the Excise Unit. 7. Serial No. field displays the Rule 11 invoice Number e.g. Aqua/105/11-12. 8. In Party A/c Name field select Lamcy Manufacturers from the List of Ledger Accounts. 9. In Party Details sub form. Despatch/Order Details: Under these two sections enter the Despatch and Order Details.
1. 2. 3. 4. 5. 6.
Sl.No. in PLA /RG-23: In this filed enter the Sl.No. in PLA /RG-23 register as 5. Date & Time of Invoice: In this field enter the time Date of Invoice. Tally.ERP 9 by default displays the system time and date in this field which can be changed.
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Date & Time of Removal: In this field enter the Time & Date of Removal of Goods. Tally.ERP 9 by default displays the system time and date in this field which can be changed. Buyer Details: In this section Tally.ERP 9 by default displays the details provided during buyer ledger creation, which can be changed.
10.In Nature of Removal field select the option Removal As Such from the list of Types of Removals.
such.
11.In Sales Ledger field select the ledger Sales @ 13.5% from the List of Ledger Accounts. 12.VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the sales ledger, which can be changed. 13.In Name of Item field select the Stock Item i.e. Pet Bottles - 1Ltr. 14.In Quantity field enter the quantity as 25,000. 15.In Rate field enter the rate as Rs. 5. 16.Amount will be displayed automatically. 17.Similarly, select Water Container - 20 Ltrs, specify Quantity as 2,500 and Rate of Rs. 10 18.Select Duty Ledger i.e. Basic Excise Duty @ 10% and press enter to view Excise Duty Allocation screen 19.In Excise Duty Allocation screen New Ref is defaulted in Type of Ref field
In Name field, the combination Excise Book Name and Serial Number details will be captured and displayed automatically. Tally.ERP9 does not allow you to alter the Name details. Name Item: This field displays all the stock items which are selected in the sales voucher Assessable Amount: This displays the item wise Assessable Value on which the duty is calculated Rate: Rate of duty defined in the duty ledger will be defaulted. If the duty paid is at higher or lower rate than the rate defined in the ledger, same can be altered in Rate field.
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Duty Amount: Duty Amount will be calculated on the Assessable Value at the rate specified.
20.Duty calculated in the Excise Duty Allocation screen will be displayed automatically in Amount filed of Basic Excise Duty Ledger. 21.Select Education Cess @ 2% and press enter to view the Excise Duty Allocation screen.
Excise Transactions
In Excise Duty Allocation screen of Education Cess - Basic Excise Duty amount will be considered as the Assessable Value to calculate the education Cess.
22.Similarly, select Secondary Education Cess @ 1% and accept the default details displayed in Excise Duty Allocation screen. 23.Select Output VAT @ 13.5% as the Vat duty ledger. Amount will be displayed automatically. 24.Set the option Show Statutory Details to Yes to view Statutory Details screen. 25.In the Statutory Details screen press Alt + F1: Detailed to view details of duty calculation. The Statutory Details screen is displayed as shown. 26.In Bill-wise Details screen In Type of Ref select New Ref
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2. Print Rule 11 invoice The Rule 11 invoice of Removal as such transaction appears as shown
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3. Excise Computation The details of Removal As Such will be displayed in computation report under Excise Duty Payable section with a separate line item as Removal As Such with Assessable Value and Duty Amount.
If the Intermediate Goods are used to manufacture Final Product which is duty chargeable, then on the removal of the intermediate goods for internal use Duty is not payable to the Government. If the Intermediate Goods are used to manufacture Final Product which is Exempted from Duty, then on the removal of the intermediate goods for internal use Duty is payable to the Government.
Invoice for Removal of Goods for captive consumption As per Excise Rules even for Removal of intermediate goods from factory for Captive Consumption excise unit has to raise Rule 11 invoice in the name of the excise unit.
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4.14.1 Accounting Captive Consumption (of Intermediate Goods to manufacturer Duty Chargeable Final Products)
Example 14: on 16-4-2011, Aqua Ltd. removed 200 U of AquaEase - 20 Ltr for using in the production of Final Products. In F11: Features (Accounting Features)
To record the above transaction Go to Gateway of Tally > Accounting Vouchers > F8: Sales In Voucher Type sub form select Ex Sales as the voucher type. Ensure that the Sales Voucher is in Item Invoice Mode. Enter the Date as 16-4-2011 In Ref field mention the bill reference number. In Excise Unit field Tally.ERP 9 displays Aqua Ltd. as selected during voucher type creation. Excise Book Name field displays the name of the excise invoice book (Aqua/Rule11/Book1/ 11-12) created for the Excise Unit. 7. Serial No. field displays the Rule 11 invoice Number e.g. Aqua/106/11-12 8. In Party A/c Name field select Aqua Ltd. from the List of Ledger Accounts. (Use Alt+C to create the ledger) 9. In Party Details sub form accept the other default details. 10.In Nature of Removal field select Captive Consumption form Type of Removal list 1. 2. 3. 4. 5. 6.
11. In Notification Number field enter the notification under which the goods are exported. If the Notification number is already specified while creating the party ledger application will capture the details from party ledger.
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12. In Notification Serial Number field enter the serial number of the notification if any. 13. In Sales Ledger field select Sales - Captive Consumption (Use Alt + C create the ledger. Set Used for VAT Returns NO) 14. In Name of Item field select AquaEase - 20 Ltr from the List of Stock Items 15. In Quantity field specify the quantity as 200 16. Rate is not specified as the goods are removed for captive consumption. The completed Captive Consumption invoice appears as shown
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4.14.2 Accounting Captive Consumption (of Intermediate Goods to manufacturer Final Products Exempted from Duty)
Example 15: on 18-4-2011, Aqua Ltd. removed 7500 Ltrs of AquaPure - 1 Ltr for using in the production of Final Products. To record the above transaction Go to Gateway of Tally > Accounting Vouchers > F8: Sales 1. 2. 3. 4. 5. 6. In Voucher Type sub form select Ex Sales as the voucher type. Ensure that the Sales Voucher is in Item Invoice Mode. Enter the Date as 18-4-2011 In Ref field select enter the Reference number of the invoice In Excise Unit field Tally.ERP 9 displays Aqua Ltd. as selected during voucher type creation. Excise Book Name field displays the name of the excise invoice book (Aqua/Rule11/Book1/ 11-12) created for the Excise Unit. 7. Serial No. field displays the Rule 11 invoice Number e.g. Aqua/107/11-12 8. In Party A/c Name field select Aqua Ltd. from the List of Ledger Accounts. 9. In Party Details sub form, in Sl. No. in PLA/RG 23 field enter the PLA Entry number - 7 and accept the other default details. 10.In Nature of Removal field select Captive Consumption form Type of Removal list 11.In Notification Number field enter the notification under which the goods are exported. If the Notification number is already specified while creating the party ledger application will capture the details from party ledger. 12.In Notification Serial Number field enter the serial number of the notification if any. 13.In Sales Ledger field select Sales - Captive Consumption 14.In Name of Item field select AquaPure 1 Ltr from the List of Stock Items 15.In Quantity field specify the quantity as 7500 16.In Rate field enter Rs 20. Amount will be calculated and displayed automatically. 17.Select Basic Excise Duty @ 10% ledger and press enter to view Excise Duty Allocation screen 18.In the Excise Duty Allocation screen accept the default details as Aqua Ltd. is paying the duty on the transaction assessable Value. If the assessable Value or Rate of duty is different then specify the same in Excise Duty Allocation screen
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19.Similarly select Education Cess and Secondary Education Cess ledger. Accept the default Excise Duty Allocations. The completed Captive Consumption invoice appears as shown
Excise Transactions
Enter the Name of the importer in the Name field. E.g. Intra Technologies Select the group Sundry Debtors in the Under field. Set Maintain Balances Bill by Bill to Yes and enter the Default Credit Period if any. Set Inventory Values are affected to No. In Mailing Details enter the supplier contact details. Enable Set/Alter Excise Details to Yes to display the Excise Details sub screen. In Excise Details screen
In
Nature of Removal field select Export In Notification field enter the notification number under which the goods are exported.
Excise Transactions
2. Record the Transaction in Sales Voucher Go to Gateway of Tally > Accounting Vouchers > F8: Sales 1. 2. 3. 4. 5. 6. In Voucher Type sub form select Ex Sales as the voucher type. Ensure that the Sales Voucher is in Item Invoice Mode. Enter the Date as 19-4-2011 In Ref field enter the Sales invoice number In Excise Unit field Tally.ERP 9 displays Aqua Ltd. as selected during voucher type creation. Excise Book Name field displays the name of the excise invoice book (Aqua/Rule11/Book1/ 11-12) created for the Excise Unit. 7. Serial No. field displays the Rule 11 invoice Number e.g. Aqua/108/11-12 8. In Party A/c Name field select Intra Technologies from the List of Ledger Accounts. 9. In Party Details sub form, in Sl. No. in PLA/RG 23 field enter the PLA Entry number - 8 and accept the other default details. 10.In Nature of Removal field select the option Export from the list of Types of Removals
11.In Notification Number field enter the notification under which the goods are exported. If the Notification number is specified while creating the party ledger application will capture the details from party ledger. 12.In Notification Serial Number field enter the serial number of the notification 13.In Sales Ledger field select the sales ledger - Sale - Exports from the List of Ledger Accounts 14.In VAT/Tax Class field the VAT/Tax class selected in the purchase ledger will be displayed automatically. 15.In Name of Item field select the Stock Item i.e. AquaPure - 1Ltr 16.In Quantity field enter the quantity as 10,000 17.In Rate field enter the rate as Rs. 20. Amount will be calculated automatically. The completed Excise- Sales voucher
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Enter the Name of the importer in the Name field. E.g. Innovative Infomatics Select the group Sundry Debtors in the Under field. Set Maintain Balances Bill by Bill to Yes and enter the Default Credit Period if any. Set Inventory Values are affected to No. In Mailing Details enter the supplier contact details. Enable Set/Alter Excise Details to Yes to display the Excise Details sub screen. In Excise Details screen
In
Nature of Removal field select Export In Notification field enter the notification number under which the goods are exported.
2. Record the Transaction in Sales Voucher Go to Gateway of Tally > Accounting Vouchers > F8: Sales 1. 2. 3. 4. In Voucher Type sub form select Ex Sales as the voucher type. Ensure that the Sales Voucher is in Item Invoice Mode. Enter the Date as 20-4-2011 In Ref field enter the sales transaction Reference Number.
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5. In Excise Unit field Tally.ERP 9 displays Aqua Ltd. as selected during voucher type creation. 6. Excise Book Name field displays the name of the excise invoice book (Aqua/Rule11/Book1/ 11-12) created for the Excise Unit. 7. Serial No. field displays the Rule 11 invoice Number e.g. Aqua/109/11-12 8. In Party A/c Name field select Innovative Infomatics from the List of Ledger Accounts. 9. In Party Details sub form, in Sl. No. in PLA/RG 23 field enter the PLA Entry number - 9 and accept the other default details. 10. In Nature of Removal field select the option Export - Duty Chargeable from the list of Types of Removals
11.In Notification Number field enter the notification under which the goods are exported. If the Notification number is specified while creating the party ledger application will capture the details from party ledger. 12.In Notification Serial Number field enter the serial number of the notification 13.In Sales Ledger field select the sales ledger Sale - Exports from the List of Ledger Accounts 14.In VAT/Tax Class field the VAT/Tax class selected in the purchase ledger will be displayed automatically. 15.In Name of Item field select the Stock Item i.e. AquaSure - 1 Ltr 16.In Quantity field enter the quantity as 20,000 17.In Rate field enter the rate as Rs. 35. Amount will be calculated automatically. 18.Select Duty Ledger i.e. Basic Excise Duty @ 10%. to view Excise Duty Allocation screen 19.In the Excise Duty Allocation screen accept the default details as Aqua Ltd. is paying the duty on the transaction assessable Value.
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If the Exporter is paying the duty on the assessable value which is different from the transaction assessable value then user can alter the assessable value. Similarly Duty Rate changes can also be specified in this screen.
20.Similarly, select Education Cess and Secondary Education Cess ledger. Amount will be calculated and displayed automatically. In Excise Duty Allocation screen accept the Default details.
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The claim of Rebate or Refund of Duty paid on exports can be recorded in Journal Voucher.
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While accounting the purchases in the books of accounts Aqua Ltd Availed CENVAT Credit * BED- 25000 * Education Cess - 500 * Secondary Education Cess - 250 Later the above Items were used in the manufacture of goods meant for Export. On 22-4-2011 Aqua Ltd reversed the CENVAT Credit availed on goods purchased dated 21-42011 to claim the refund of Duty on Raw Materials from the department. To record the above transaction 1. Create a CENVAT Refund Receivable Ledger 2. Record the Excise Purchase voucher (to account purchase & avail Credit) 3. Create Voucher Class for Journal Voucher 4. Record a Journal Voucher (to reverse the credit availed)
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1. Create a CENVAT Refund Receivable Ledger The CENVAT Refund Receivable ledger is a control ledger to account the CENVAT refund receivable. Create this ledger under Current Assets.
2. Record the Excise Purchase Voucher (to account Purchase & Avail Credit) Go to Gateway of Tally > Accounting Vouchers > F9: Purchase 1. 2. 3. 4. 5. 6. 7. 8. In Voucher Type sub form select Excise Purchases as the voucher type. Ensure that the Sales Voucher is in Item Invoice Mode. Enter the Date as 21-4-2011 In Supplier Invoice No. field specify the Invoice Number - LM\5446 In Excise Unit field Tally.ERP 9 displays Aqua Ltd. as selected during voucher type creation. In Party A/c Name field select Lamcy Manufacturers from the List of Ledger Accounts. In Nature of Purchase field Manufacturer will be defaulted as selected in the party ledger. In Purchase Ledger field select Purchase of Raw Materials from the List of Ledger Accounts.
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9. In VAT/Tax Class field the Vat Class selected in the Purchase ledger will be displayed automatically. 10. In Name of Item field select Pet Bottles - 1Ltr from the List of Stock Items 11. In Quantity field specify 2,00,000 & Rate as Rs. 1 per bottle. Amount will be calculated and displayed automatically. 12.Select Bottle Caps as second item in Name of Item field 13. In Quantity field specify 2,00,000 & Rate as Rs. 0.25 per bottle. Amount will be calculated and displayed automatically. 14. Press Enter twice and select Basic Excise Duty (CENVAT) ledger to account the CENVA Credit on the items purchased. BED amount will be calculated and displayed automatically 15. Similarly, select Education Cess (CENVAT) and Secondary Education Cess (CENVAT) ledgers. 16.Select Input VAT ledger to account the input vat paid on the purchases 16. In Bill-wise Details, accept the default bill details The completed Excise Purchase Voucher is displayed as shown
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3. Create Voucher class for Journal Voucher To create voucher class for Journal voucher Go to Gateway of Tally > Accounts Info. > Voucher Types > Alter > select Journal In Voucher Alteration screen
Tab down to Name of Class field In Name of Class field enter the class name as CENVAT Adjustment
Press enter from Name of Class field to view Voucher Type Class screen In Voucher Type Class screen
Set
Press Enter to save Voucher Type Class and Voucher Type Alteration screen.
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4. Record a Journal Voucher (to reverse the credit availed) Before recording the CENVAT Reversal transaction in Journal Voucher, ensure a voucher Class is created in Journal Voucher by enabling the option - USe Class for Excise/CENVAT Adjustments. To record the CENVAT Credit reversal transaction Go to Gateway of Tally > Accounting Vouchers > F7: Journal 1. In Change Voucher Type Screen, select CENVAT Credit Adjustment in Class field 2. Enter the Date as 22-4-2011 3. In Used for field, select CENVAT Refund/Reversal from the list of Excise Adjustments
4. In Excise Unit field select the Excise unit - Aqua Ltd. for which the CENVAT Reversal entry is being recorded. 5. In Debit field select CENVAT Refund Receivable ledger and in Debit Amount field enter the amount which is to be claimed as refund from the department. In this case Aqua Ltd. is claiming the refund of Rs. 25,750 6. In Credit field select the Basic Excise Duty (CENVAT) and press enter to view the Excise Duty Allocation screen 7. In Excise Duty Allocation screen In Type of Ref field Agst Ref will be defaulted
In Name field Tally.ERP 9 displays the list of tax bills towards which the credit is already availed
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In Name field select Bills towards which the CENVAT Credit refund to be claimed. In this case Aqua Ltd. want to reverse the credit availed on tax bill - LM\5446, dated 21-4-2011 for items Bottle Caps (Rs. 5,000) and Pet Bottles - 1 Ltr (Rs. 20,000)
8. In Credit field select Education Cess (CENVAT) and press enter. In Excise Duty Allocation screen select the tax bill - LM\4556, dated 21-4-2011 for items Bottle Caps (Rs. 100) and Pet Bottles - 1 Ltr (Rs. 400)
9. In Credit field select Secondary Education Cess (CENVAT) and press enter. In Excise Duty Allocation screen select the tax bill - LM\4556, dated 21-4-2011 for items Bottle Caps (Rs. 50) and Pet Bottles - 1 Ltr (Rs. 200) 10.Set the option Provide Details to Yes to specify the period for which the cenvat credit is reversed.
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11. Press Enter to accept. The CENVAT Credit Reversal entry will affect the following Excise Reports:
In Excise Computation the CENVAT Credit will be reduced to the extent of Reversal. In Form ER 1 the reversed CENVAT will be shown as utilisation of CENVAT Credit against row number 11 (Credit utilised for payment of Duty on goods). In CENVAT Credit Summary and Availed report, the reversal amount will be shown as utilisation. In Abstract the reversal of CENVAT Credit will appear under the column Credit Utilised for Payment of Duty on Goods. In RG 23A Part II, the CENVAT Credit will be captured under the Debit columns and balance will be shown at the end of the report.
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Enter the Name of the importer in the Name field. E.g. Sunidhi Enterprises Select the group Sundry Debtors in the Under field. Set Maintain Balances Bill by Bill to Yes and enter the Default Credit Period if any. Set Inventory Values are affected to No. In Mailing Details enter the supplier contact details. Enable Set/Alter Excise Details to Yes to display the Excise Details sub screen. In Excise Details screen
In
Nature of Removal field select Export In Notification field enter the notification number under which the goods are exported.
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2. Record the Transaction in Sales Voucher Go to Gateway of Tally > Accounting Vouchers > F8: Sales 1. 2. 3. 4. 5. 6. In Voucher Type sub form select Ex Sales as the voucher type. Ensure that the Sales Voucher is in Item Invoice Mode. Enter the Date as 23-4-2011 In Ref field enter the sales transaction Reference Number. In Excise Unit field Tally.ERP 9 displays Aqua Ltd. as selected during voucher type creation. Excise Book Name field displays the name of the excise invoice book (Aqua/Rule11/Book1/ 11-12) created for the Excise Unit. 7. Serial No. field displays the Rule 11 invoice Number e.g. Aqua/110/11-12 8. In Party A/c Name field select Sunidhi Enterprises from the List of Ledger Accounts. 9. In Party Details sub form, in Sl. No. in PLA/RG 23 field enter the PLA Entry number - 10 and accept the other default details. 10. In Nature of Removal field select the option Exempt from the list of Types of Removals
11.In Notification Number field enter the notification under which the goods are exported. If the Notification number is specified while creating the party ledger application will capture the details from party ledger. 12.In Notification Serial Number field enter the serial number of the notification 13.In Sales Ledger field select the sales ledger Sale - Exempt from the List of Ledger Accounts 14.In VAT/Tax Class field the VAT/Tax class selected in the purchase ledger will be displayed automatically. 15.In Name of Item field select the Stock Item i.e. AquaSure - 1 Ltr 16.In Quantity field enter the quantity as 10000. In Rate field enter the rate as Rs. 35. Amount will be calculated automatically.
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Excise Duty Ledgers are not selected as the party is claiming the exemption from duty payment.
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Value of materials, components, parts and similar items relatable to such goods; Value of tools, dies, moulds, drawings, blue prints, technical maps and charts and similar items used in the production of such goods; Value of material consumed, including packaging materials, in the production of such goods; Value of engineering, development, art work, design work and plans and sketches undertaken elsewhere than in the factory of production and necessary for the production of such goods.
are apportioned to the goods manufactured to calculate the Excise Duty. Example: A car manufacturer gave an order to Component Manufacturer to produce components as per the design & specification given by it. Car manufacturer supplied tools, dies & moulds free of cost to enable the manufacture of automobile components. Tools, dies, moulds etc. have their own life span and will be used for estimated production during their useful life. Consequently, depending upon the expected useful life and/or expected number of units likely to be produced, value of tools, dies, moulds etc. supplied by the car manufacturer free of charge is appropriately apportioned per unit of production to calculate the Excise Duty. Tally.ERP 9 supports recording of amortisation sales by apportioning the cost of any additional consideration flowing from buyer. Example 20: on 22-4-2011, Universal Distributors supplied specially designed stickers - 2000 nos with clear instruction that all the mineral water bottles manufactured and supplied by Aqua Ltd should have the Stickers supplied by them. The cost of stickers supplied are Rs.2000(Rs. 1per sticker). On 25-4-2011 Aqua Ltd sold 1,500 liters of AquaSure - 1Ltr (with specially designed stickers supplied by the customer) @ 35 per Liter and considered the cost of stickers supplied by the customer to calculate the Excise Duty. To record the above transaction 1. Create Expense Ledger 2. Record the Transaction in Excise Sales Voucher
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Step 1: Create Expense Ledger To apportion the cost of the tools, dies, moulds, packing materials etc supplied by the Customer which are used in the manufacture of Finished goods create a ledger under Indirect Expenses To create the Ledger Go to Gateway of Tally > Accounts Info. > Ledgers > Create
In Name field enter the name of the expenses ledger - Stickers (Amortisation Exp.) In Under field select Indirect Expenses Set the option Inventory values are affected to No In Type of Ledger field select Not Applicable Set the option Use for Assessable Value Calculation to Yes
In
Apportion for field select Excise from the list of Duty/Tax Type In Method of Apportion select Based on Quantity from Method of Apportion list
You can select the Method of Apportion - Based on Quantity or Based on Value which ever is appropriate. In this case Aqua Ltd. has selected Based on Quantity, as cost of stickers are appropriated to the quantity of item sold.
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Step 2: Record the Transaction in Excise Sales Voucher To create a Sales Voucher Go to Gateway of Tally > Accounting Vouchers > F8: Sales In Voucher Type sub form select Ex Sales as the voucher type. Enter the Date as 25-4-2011. In Ref field enter the sales reference number In Excise Unit field Tally.ERP 9 displays Aqua Ltd. as selected during voucher type creation. Excise Book Name field displays the name of the excise invoice book (Aqua/Rule11/Book1/ 11-12) created for the Excise Unit. 6. Serial No. field displays the Rule 11 invoice Number e.g. Aqua/111/11-12. 7. In Party A/c Name field select Universal Distributors from the List of Ledger Accounts. 8. In Party Details sub form enter the Despatch Details & enter 11 in Sl. No.PLA/RG 23 Number 9. In Nature of Removal field select the option Domestic from the list of Types of Removals and skip Notification Number field. 10.In Sales Ledger field select the ledger Sales @ 13.5% from the List of Ledger Accounts. 11.VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the sales ledger, which can be changed. 12.In Name of Item field select the Stock Item i.e. AquaSure 1 Ltr. 13.In Quantity field enter the quantity as 1,500. 14.In Rate field enter the rate as Rs. 35. Amount will be calculated and displayed automatically. 15.Press enter twice and select Stickers (Amortisation Exp.) ledger to amortise the stickers cost to the goods manufactured & sold to the customer. In Amount field mention Rs. 1,500 (Rs. 1 per sticker- 1500 mineral water bottles are manufactured with specially designed stickers) 1. 2. 3. 4. 5.
16.Select Duty Ledger i.e. Basic Excise Duty @ 10%. Amount will be calculated and displayed automatically.
Excise Duty is calculated on Assessable Value which is inclusive of amortisation expenses (30000 + 1500).
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17.Select Education Cess @ 2% and Secondary Education Cess @ 1% ledgers. Amount will be calculated and displayed automatically. 18.Select Output VAT @ 13.5% as the VAT duty ledger. Amount will be displayed automatically.
19.Set the option Show Statutory Details to Yes to view the Statutory Details screen. The completed Excise Sales Voucher is displayed as shown
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Record the Purchase Returns (Excise Debit Note) To record a Debit Note In F11: Features (Accounting Features)
Set Use Debit/Credit Notes to Yes Set Use Invoice mode for Debit Notes to Yes
Go to Gateway of Tally > Accounting Vouchers > Ctrl + F9: Debit Note In Voucher Type sub form select Excise - Debit Note as the voucher type Ensure that the Debit Note Voucher is in Item Invoice Mode Enter the Date as 26-4-2011 Enter the Ref details as AQ\5912 In Excise Unit field Tally.ERP 9 displays Aqua Ltd., as selected during voucher type creation Excise Book Name field displays the name of the excise invoice book (Aqua/Rule11/Book1/ 11-12) created for the Excise Unit 7. No. field displays the Rule 11 invoice Number e.g. Aqua/112/11-12 8. In Party A/c Name field select Lamcy Manufacturers from the List of Ledger Accounts 9. In Nature of Removal field select the option Domestic from the list of Types of Removals 10.In Purchase Ledger field select the ledger Purchase of Raw Materials from the List of Ledger Accounts 1. 2. 3. 4. 5. 6.
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11.VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the sales ledger, which can be changed. 12.In Name of Item field select the Stock Item i.e. Pet Bottles - 1Ltr 13.In Item Allocation screen, in Quantity field enter the quantity as 2,000 14.In Rate field enter the rate as Rs. 1. Amount will be calculated and displayed automatically. 15.In Name of Item field select the Stock Item i.e. Bottle Caps 16.In Item Allocation screen, enter the Quantity as 2,000 and Rate as Rs.0.25 17.Select Duty Ledger i.e. Basic Excise Duty @ 10%. Amount will be calculated and displayed automatically. 18.Select Education Cess @ 2% and Secondary Education Cess @ 1% ledgers. Amount will be calculated and displayed automatically 19.Select Input VAT @ 5% as the Vat duty ledger. Amount will be displayed automatically 20.Set the option Show Statutory Details to Yes to view Statutory Details screen 21.In Statutory Details screen press Alt + F1: Detailed to view details of duty calculation. Statutory Details screen appears as shown.
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22.In Bill-wise Details screen select Type of Ref as Agst Ref and select LM/243 dated 5-42011.
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Print preview of Rule 11 invoice generated for Purchase returns is displayed as shown
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In Name field specify the bill name as Adv - 001 In Excise Unit field select the Excise unit which is making the advance payment of tax. e.g Aqua Ltd. In Amount field enter the amount which is paid as advance Rs. 10,000
5. Set the option Provide Details to Yes to view Payment Details screen 6. In the Payment Details screen, enter In Period From and To field enter the period as 1-4-2011 to 30-4-2011
In Excise Unit Name field select Aqua Ltd. from the List of Excise Units
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In Challan No. field enter the Bank Challan no. - 587964 used to pay the duty amount In Challan Date field enter the date 27-4-2011 on which the duty is paid In Bank Name field enter the Name of the Bank SBI Bank through which the payment is made. In BSR Code field enter the BSR Code of the branch - 0078528 In Cheque/Draft/Pay Order No. field enter the Cheque Number 688541 In Cheque Date field enter the cheque date as 27-4-2011
7. In Bank Allocations screen, enter the appropriate Favouring Name and accept the other default details. The completed payment voucher is displayed as shown
Excise Transactions
To view the Advance Payment entries Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Manufacturer > PLA Register
The Advance paid will be adjusted against the duty payable (if any) and the balance advance amount will be displayed with the negative sign. Advance Excise Duty Paid details will be displayed even in Excise Computation report also
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4.21 Creating a Journal Voucher Adjustment of Advances against the Duty Payable
Example 23: On 28-4-2011, Aqua ltd adjusted the advance duty paid of Rs. 10,000 towards the bill AQ/785/1011. Record the transaction in Journal Voucher Go to Gateway of Tally > Accounting Vouchers > F7: Journal 1. In Change Voucher Type screen select the Class as CENVAT Adjustment
2. Enter the Date as 28-4-2011 3. In Used for field select Adjustment towards Advance Duty Paid as the Excise Adjustment
4. In Excise Unit field select Aqua Ltd. 5. In Debit field select the Excise Duty Ledger- Basic Excise Duty @ 10% (to adjust against the advances) and press enter to view Excise Duty Allocation screen 6. In the Excise Duty Allocation screen
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In Type of Ref field by default Agst Ref will be defaulted automatically. In Name field select the bill - AQ/785/10-11 (sales bill)
Advance of Rs. 10,000 is paid towards Basic Excise Duty. In the above case we are adjusting the entire advance amount towards the sales bill.
7. In Credit field select the Excise Duty Ledger- Basic Excise Duty @ 10% (adjust the advances) and press enter to view ExcsieMfgr AdvAdjustements screen 8. In the ExcsieMfgr AdvAdjustements screen
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The Bill Type filed will be defaulted to Agst Ref In Bill Name field select the Advance paid Tax Bill from the List of Advanced Tax Bill
In Amount field Rs. 10,000 will be defaulted. Accept the default amount as the entire amount of advance paid is adjusted towards Duty payable.
9. Set the option Provide Details to Yes. 10.In Adjustment Details screen enter the From and To date for which period the advance excise duty paid is adjusted
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11.Press Enter to accept. Adjusted and Balance advance duty paid (if any) details will be displayed in the Excise Computation report
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4. Press Alt+L or click on L: Excise Helper button to view Excise Duties Adjustments screen 5. In Excise Duties Adjustments screen In Excise Unit field select Aqua Ltd. from the List of Excise Units. On selecting Excise Unit the CENVAT credit available details will be displayed in CENVAT Available column
In Payable From and To field mention the period for which the payment is done. From: 1-4-2011 To: 30-4-2011 On specifying the Payable From and To date the excise duty payable for the period specified will be displayed in Duty Payable column
Payable
Rs.
1,27,307 is the CENVAT Credit (Basic Excise Duty amount) available for adjustment towards excise duty payable Rs. 2546.50 is the CENVAT Credit (Education Cess amount) available for adjustment towards excise duty payable. Credit of Education Cess on Excisable goods and imported goods can be utilised only for payment of education cess on final products.
Rs.
1273.25 is the CENVAT Credit (Secondary Education Cess amount) available for adjustment towards excise duty payable. Credit of SHE Cess on Excisable goods and imported goods can be utilised only for payment of secondary education cess on final products.
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User can adjust full / partial amount of CENVAT Credit available towards duty payable for the period. The amount of CENVAT credit adjusted towards duty payable needs to be specified in Adjustment Amount column.
Excise Duty Rs. 1,27,307 Education Cess Rs. 2546.50 Secondary Education Cess Rs. 1273.25 In this case Aqua Ltd. has excess duty payable than the Cenvat Credit available for the month of April. We are adjusting the complete amount of CENVAT Credit towards the duty payable.
Press Enter to save the Excise Duties Adjustments. Tally.ERP 9 displays Proceed to Adjust Excise Duties screen for confirmation to adjust excise duties.
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Currently Tally.ERP 9 allows the adjustment of credit and liability of same nature of duty example: BED credit can be adjusted towards BED.
CENVAT Adjustment between the duties i.e. BED Credit adjustment towards NCCD etc. and of service input credit towards excise duty and vice versa are not supported.
Adjustment
6. On saving the Excise Duties Adjustments, Journal Voucher displays the adjusted ledgers with the amount adjusted automatically
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4.23 Creating a Payment Voucher GAR 7 Payment (Without using Auto Fill)
Example 25: On 3-5-2011 Aqua Ltd. paid Excise duty of Rs.61268.25 for the month of May to the government. Basic Excise Duty - Rs. 59193 Education Cess - Rs. 1383.50 Secondary Education Cess - Rs.691.75 To create a Payment Voucher Go to Gateway of Tally > Accounting Vouchers > F5: Payment Setup In F12: Configure (Payment Configuration)
1. Enter the Date as 3-5-2011 2. Press Alt + S or click on S: Stat Payment to view Statutory Payment screen
3. In Statutory Payment screen Type of Duty/Tax: In this field select the Tax/Duty Type towards which tax payment entry is being recorded. Here we are recording excise duty payment entry, hence select Excise from the Type of Duty/Tax
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The Types of Duty/Tax will be displayed based on the statutory features enabled in F11: Features for the company
4. Auto Fill Statutory Payment: Set this option to YES to auto calculate and fill the duty payable to the Government. Set this option to NO, if the user wants to manually select the duty ledger and duty bills. Aqua Ltd. does not want the duty details to be auto filled to the payment voucher, hence the option Auto Fill Statutory Payments is set to No.
5. Press Enter to accept the Statutory Payment screen. 6. In Account field select Bank Ledger e.g. SBI Bank 7. Under Particulars select Excise Duty ledger - Basic Excise Duty @ 10% and press enter to view Excise Duty Allocation screen. 8. In Excise Duty Allocation screen select the bills - AQ/1025/10-11 and AQ/785/10-11 for the Payment of tax
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9. Amount will be updated to the Payment voucher based on the pending bills selected in the Excise Duty Allocation screen. 10.Under Particulars select Excise Duty ledger - Education Cess @ 2% and Secondary Education Cess @ 1%. In Excise Duty Allocation screen select the pending bills - AQ/1025/1011 and AQ/785/10-11for the Payment of tax. 11.Set the option Provide Details to Yes to view Payment Details screen.
12.In Payment Details screen In Period From and To field enter the period as 1-4-2011 to 30-4-2011
In Excise Unit Name field select Aqua Ltd. from the List of Excise Units In Challan No. field enter the Bank Challan no. - 456423 used to pay the duty amount In Challan Date field enter the date 3-5-2011 on which the duty is paid In Bank Name field enter the Name of the Bank - SBI Bank through which the payment is made.
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In BSR Code filed enter the BSR code of the bank In Cheque/Draft/Pay Order No. field enter the Cheque Number - 552423 In Cheque Date field enter the cheque date as 3-5-2011
13.In Bank Allocations screen, in Favouring Name field enter the appropriate Name and in other fields accept the default details. The completed Payment Voucher appears as shown
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G.A.R.-7 Payment entry can also be recorded in Single Entry or Double Entry mode without using S: Stat Payment button/option.
Printing G.A.R.7 Challan Press Page Up from the payment voucher to view the payment voucher entered on 13-6-2009 Press Alt +P or click on P: Print button to view the Voucher Printing Screen
The option Print G.A.R.7 Challan is by default set to Yes Ensure that Alt+I with Print Preview is selected and press enter to view print preview of G.A.R. 7 Challan
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The Types of Duty/Tax will be displayed based on the statutory features enabled in F11: Features for the company
Auto Fill Statutory Payment: Set this option to YES to auto calculate and fill the duty payable to the Government. Set this option to NO, if the user wants to manually select the duty ledger and duty bills. Aqua Ltd. wants the duty details to be auto filled to the payment voucher, hence the option Auto Fill Statutory Payments is set to Yes. On setting the option Auto Fill Statutory Payments to Yes, based on the Duty/Tax Type selected Tally.ERP 9 displays the appropriate statutory payment fields to fill the details.
In
Period From and To field enter the period as 1-4-2011 to 30-4-2011 In Excise Unit Name field select Aqua Ltd. from the List of Excise Units
Excise Transactions
4. Press Enter to save the Statutory Payments screen. 5. On saving the Statutory Payments screen, based on the period specified and the excise unit selected the duty details will be automatically displayed in the payment voucher.
6. In Accounts field, select the Bank Ledger - SBI Bank form the List of Ledger Accounts 7. Set the option Provide Details to Yes to specify the duty payment details. 8. In Payment Details (for Excise) screen Period From and To: The period details will be displayed automatically based on the period specified in Statutory Payments screen
Excise Unit Name: Unit Name will be displayed automatically based on the excise unit specified in Statutory Payments screen Challan No.: In this field enter the Bank Challan no. - 456578 used to pay the duty amount Challan Date: Enter the date - 6-5-2011 on which the duty is paid Bank Name: In this field specify the Bank Name - SBI Bank through which the payment is made. BSR Code: In this field mention the BSR Code of the Branch - 0078296 Cheque/Draft/Pay Order No.: Enter the Cheque Number - 552568 In Cheque Date field enter the cheque date as 6-5-2011
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9. Press Enter to accept the Payment Details. The completed G.A.R.-7 Payment voucher is displayed as shown
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Lesson 5:
Excise Reports
Excise Computation Daily Stock Register PLA Register Form ER 1 Form ER 5 Form ER 6 E-Return CENVAT Registers
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If you have more than one manufacturing unit select the appropriate Excise Unit from the List of Excise Units for which you want to view the Excise Computation report
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1. Daily Stock register for One Item- Select the option One Item In Select Excise Unit screen
If you have more than one manufacturing unit select the appropriate Excise Unit from the List of Excise Units for which you want to view the Daily Stock Register
Name of Tariff: In this field select the Tariff to view the stock items/item grouped under the selected tariff. Select Water as Tariff. Name of Item: Select AquaPure - 1Ltr from the List of Excise Stock Items.
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You can select appropriate Stock item from the List of Excise Stock items to view the Daily Stock Register The Daily Stock Register appears as shown
From this report you can select any document reference to drill down to view the Inventory voucher alteration (secondary) screen. 2. Multi Item Daily Stock register - Select the option Multi Item In Select Excise Unit screen
If you have more than one manufacturing unit select the appropriate Excise Unit from the List of Excise Units for which you want to view the Daily Stock Register
Name of Tariff: In this field select the Tariff to print the Daily Stock Register report for the stock items grouped under the selected tariff. Select Water as Tariff.
In Report Generation screen you can specify the period for which you want to view the report.
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Ensure Alt+I: With Preview is selected to view the print preview of Multi Item Daily Stock Register The Print Preview of Multi Item Daily Stock Register is displayed as shown. Depending on the number of stock items grouped under the Tariff selected for printing, details of each item will be printed in separate pages. Page 1: AquaEase - 20Ltr
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Select the Excise Unit Aqua Ltd. from the List of Excise Units
If you have more than one manufacturing unit select the appropriate Excise Unit from the List of Excise Units for which you want to view the PLA Register.
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5.5 Form ER 1
Form ER 1 is a monthly return for production, removal of Goods, other relevant particulars and CENVAT Credit. All the Excise Manufacturing (Regular/Large Tax payer) Units should file returns in Form ER 1. You can generate Form ER 1 in Tally.ERP 9. To view Form ER 1 Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Manufacturer > Form ER 1
Press Backspace to select the Excise Unit and to set From Date and To Date to take the print of Form ER 1 for appropriate period
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5.6 Form ER 5
Form ER - 5 is an annual return of information relating to Principal Inputs (Quantity) used in the manufacture of Finished Goods. Form ER 5 can be generated from Tally.ERP 9 To view Form ER 5 Go to Gateway of Tally > Display >Statutory Reports> Excise Reports> Manufacturer> Form ER 5 In Print Report screen
Excise Unit: In this field select the appropriate Excise Unit for which you want to generate form ER 5 From and To: In this field specify the relevant period for which the form to be generated. Specify Place, Date and Assessee Name
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5.7 Form ER 6
Form ER 6 is an monthly return of information relating to Principal Inputs used in the manufacture of Finished Goods. This Return contains the details of Opening balance, Receipts and consumption of Principal inputs and quantity of finished goods manufactured. To view the Form ER 6 Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Manufacturer > Form ER 6 In Print Report screen
Excise Unit: In this field select the appropriate Excise Unit for which you want to generate form ER 6 From and To: In this field specify the relevant period for which the form to be generated. Specify Place, Date and Assessee Name
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Excise Reports
5.8 E-Return
The Central Board of Excise and Customs has issued a notification making e-filing mandatory for assessees with effect form 1-4-2010. As per the Notification, all the registered Excise Manufacturers who have paid total duty of rupees ten lakhs or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year to file the monthly return, electronically under sub-rule (1) of Rule 12 of the Central Excise Rules, 2002. To assist and manage e-filing, Central Board of Excise & Customs has set up an e-governance portal Automation of Central Excise and Service Tax (ACES) [http://aces.gov.in]
XML Schema is a language for describing the structure and constraining the contents of XML documents
Assessees who are not maintaining the records in computerised system, can down load the Excel utility and enter the details manually, validate and upload the Excel utility. Assessees who have computerized systems in place and can generate their return from their existing application, department has given the process to prepare return in XML format validate and upload the ER 1 return. Benefits of using the XML schema is that if user is having huge data to upload instead of entering manually they can use their application for generating XML schema.
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Press Backspace to provide Returns Period, Place, Date of generating E-Returns and other details
Excise Unit: As Tally.ERP 9 allows creating and maintaining accounts of multiple units in a single company and allows to generate Excise Unit-wise e-returns. Excise Unit field is provided to select the Excise unit for which E-Return to be generated. Example: ABC Company. Language: Language is fixed to Restricted (ASCII Only) and the application will not allow to move the cursor to change the language. Format: Format is fixed to XML (Data Interchange). Currently, the ACES application supports the uploading of E-Returns generated in XML format from computerised systems. Hence, the XML (Data Interchange) is defaulted and application does not allow to change the export format. Export Location: By default, it displays the path where Tally.ERP 9 is installed. In Export Location field enter the details of the path to where the XML file to be exported.
Ensure a copy of ACES_ER1.xsd file is copied to the folder (Tally.ERP 9 folder) to which the E-Return is getting exported. ACES_ER1.xsd file is required because on exporting the XML E-Return from Tally.ERP 9, the ACES_ER1.xsd validates the data structure of the E-Returns generated automatically. If the ER1 E-Return generated form Tally.ERP 9 is not validated ACES_ER1.xsd, while uploading such ER1 E-Returns ACES application displays the error & will not allow to upload the file.
Output File Name: Tally.ERP 9 by default displays the Output File Name in the Format as specified under E-Return Requirements. The E-Return Requirement has clearly indicated that the E-Return File Format should - 15 Digit ECC Number_ Month Date Year Hour Minutes Seconds AM/PM.xml Example: AAPCL2149RXM001_04202011160622PM.xml
Tally.ERP 9 allows the user to change the Output File Name while generating the ereturn in XML format. But to upload the E-Returns, assessee has to follow the file name structure as specified under E-Returns Requirement. If the File name structure is different then, the ACES application will not allow the Assessee to upload the Returns.
From: In this field enter the period (1-4-2011) from where the return to be generated. To: In this field enter the till (30-4-2011) date to generate the return
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By default the period in From and To date filed will be displayed based on the last date of the entry in the books of accounts.
Place: In this field enter the place of generating the return Date: In this field enter the Date on which e-Return is generated Remarks: In this field enter the details as Monthly Return for 1-4-2011 to 30-4-2011
From and To period, Place, Date and Remarks are Mandatory fields. If the Assessee generates the returns without or incomplete details, the e-return generated will show the errors for the missing details.
Validation: This field will be displayed in Exporting ER1 E-Return screen only when the HSN code defined in Tariff Classification is not correct, If the finished goods cleared (sold) have Negative Stock, Stock Items without valid Reporting UOM and Excise sales recorded with Notification Number but the Notification Type is not defined.
To correct the HSN Code, Negative Stock, Reporting UOM refer - Getting Started with E R - 1 E-Returns
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The exported file will be placed in the Tally.ERP 9 Directory with the file name as specified above and ready for upload.
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Name of Excise Unit: By default Tally.ERP 9 displays Aqua Ltd. If you have more than one manufacturing unit select the appropriate Excise Unit from the List of Excise Units for which you want to view the Credit Summary report.
Tariff No.: Select Plastic Bottles from the List of Tariff No. Stock item Type: Select Principal Input from the List of Item Types Stock Item Name: Select All Items from the List of Stock Items
You can select Principal Input or Capital Goods from the Type of Stock items to view the Credit Summary report. Press Alt+F1 or click on F1: Detailed button to view the report in detailed mode. The Credit Summary appears as shown
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If you have more than one manufacturing unit select the appropriate Excise Unit from the List of Excise Units for which you want to view the CENVAT Credit Availed report.
Tariff No.: Select Pet Bottle Caps from the List of Tariff No. Stock item Type: Select Principal Input from the List of Item Types Stock Item Name: Select All Items from the List of Stock Items
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5.9.3 RG 23 Part I
Form RG 23 Part I is a Quantitative account of inputs/ capital goods on which cenvat credit is availed Form RG 23 Part I report captures details of Receipt of inputs/Capital goods, Inputs issued for the manufacture of finished goods/capital goods issued for manufacturer, Inputs/Capital goods issued for Clearance as such and Closing Stock of Inputs/Capital goods. To view Form RG 23A Part I report Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Manufacturer > CENVAT Registers > RG 23 Part I In Select Excise Unit screen
Name of Excise Unit: By default Tally.ERP 9 displays Aqua Ltd. If you have more than one manufacturing unit select the appropriate Excise Unit from the List of Excise Units for which you want to view the RG23 Part I report.
Name of Item: Select Principal Input from the Type of Stock Items. You can select Principal Input or Capital Goods from the Type of Stock items to view RG 23 Part I report.
On selecting Principal Unit Tally.ERP 9 displays RG 23A Part I and for Capital Goods it displays the RG 23C Part I. Form R.G. 23A Part I (for Principal Inputs) is displayed as shown below
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Form R.G. 23C Part I (for Capital Goods) is displayed as shown below
5.9.4 RG 23 Part II
RG 23A Part II report displays the details of Fresh Credit allowed documents, Fresh Credit Allowed Amount, Total Credit Available, Credit Adjusted with Opening and Balance Credit of Principal Inputs (RG 23A Part II)/Capital Goods (RG 23A Part II) for the Period selected. To view RG 23A Part II Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Manufacturer > CENVAT Registers > RG 23 Part II In Select Excise Unit screen
If you have more than one manufacturing unit select the appropriate Excise Unit from the List of Excise Units for which you want to view the RG23 Part II report.
Name of Item: Select Principal Input from the Type of Stock Items.
You can select Principal Input or Capital Goods from the Type of Stock items to view RG 23 Part II report.
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On selecting Principal Unit Tally.ERP 9 displays RG 23A Part II and for Capital Goods it displays the RG 23C Part II Form R.G. 23A Part II (for Principal Inputs) is displayed as shown below
Form R.G. 23C Part II (for Capital Goods) is displayed as shown below
Excise Reports
5.9.5 Annexure 10
It is a monthly return under Rule 7 of the Cenvat Credit Rules, 2001. This report displays the details of CENVAT credit availed for the Main Item in the Document.
This annexure is omitted (w.e.f 1-10-2003) by M.F. (D.R.) Notification No.70/2003C.E. (N.T.), dated 15-9-2003. But most of the assessees still submit their monthly returns in Annexure 10. On Customers requirement Annexure 10 is provided in Tally.ERP 9
To view Annexure 10 Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Manufacturer > CENVAT Registers > Annexure 10 In Select Excise Unit screen
Name of Excise Unit: By default Tally.ERP 9 displays Aqua Ltd. If you have more than one manufacturing unit select the appropriate Excise Unit from the List of Excise Units for which you want to view the Annexure 10.
Name of Item: Select Principal Input from the Type of Stock Items.
You can select Principal Input or Capital Goods from the Type of Stock items to view Annexure 10.
Excise Reports
5.9.6 Abstract
This report display the details of Credit Availed on Inputs/capital goods/inputs services, Credit Utilised for Payment of Duty on Goods/Services, Credit Utilised When the Goods are removed as such with Opening and Closing Balance of Credit. To view the Abstract report Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Manufacturer > CENVAT Registers > Abstract The Abstract report of Principal Inputs will be displayed as shown
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Excise Reports
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