fbpx
Skip to content
Home » Excise for Manufacturer

Excise for Manufacturer

Table of Contents

Selecting Excisable Item with Different Rates in Sale Invoice (Excise for Manufacturer)

Excise for Manufacturer – When a same excisable item is purchased with different rate of duty or duty per unit from different suppliers, it is advised to select item multiple times in a sales invoice since the item has different rate of duty.

However, instead of selecting the item multiple times, if multiple supplier references are selected in Supplier Details screen of the sales invoice. The reference details are displayed incorrectly in Rule 11 invoice, and other reports including the returns. Additionally, the duty passed on under Total Duty and Duty Per unit will be incorrect. It captures only first purchase bill details. However, the assessable value appears correctly.

Record Availment of Partial CENVAT Credit (Capital Goods) – Excise for Manufacturer

When purchasing raw materials (capital goods), the duty amount can be accounted for as an additional expense on the purchase. Later, there may be a need to account it as CENVAT credit. To adjust the duty amount, a journal voucher has to be recorded with the flag Availment of CENVAT Credit (Capital Goods).

  1. Gateway of Tally > Vouchers > press F7 (Journal).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F7 (Journal).
  2. Press Alt+(Stat Adjustment).
  3. Enter the Type of Duty/TaxTax Unit, and Nature of Adjustment in the Stat Adjustment Details screen.
  4. Press Enter.
  5. Press Enter to accept the Tax Unit.
    The Tax Unit selected in the Stat Adjustment Details screen will be displayed here. Press Spacebar to change the Tax Unit.
  6. Debit the required duty ledger and enter the required amount to claim.
  7. Credit the required duty ledger.
  8. Enter the Narration, if required.
  9. Press Enter. The completed adjustment entry is as shown below:
  10. Press Enter to save.

Accounting for Retained Goods (Excise for Manufacturer)

When a portion of goods is retained by the manufacturer for self-consumption (for example: testing), the goods are treated by the excise department in the same way as goods that are sold to a third party.

Excise for Manufacturer

Record a Sales Invoice for Self

  1. Go to Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
  2. Press Ctrl+H (Change Mode) > select Excise Invoice.
  3. Enter Ref. number.
  4. Select the company’s name in the field Party’s A/c Name.Note: Create a party ledger for the company under Sundry Debtors.
  5. Select the Sales Ledger.
  6. Select the Name of Item from the List of Stock Items.
  7. Select the duty ledger. The completed sales invoice screen appears as shown below:
  8. Press Enter to save.

Excise for Manufacturer

Record a Payment Voucher to Pay Duty for the Retained Goods

  1. Gateway of Tally > Vouchers > press F5 (Payment).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F5 (Payment).
  2. Select Cash as the Account.
  3. Select the Customs Duty ledger.
  4. Enter the Amount. The completed payment voucher screen appears as shown below:
  5. Press Enter to save.

Creating Excise Duty Liability on Goods Transferred or Retained Internally

When excise goods are transferred or retained internally, excise duty liability is created and duty is paid against this liability.

Ensure that you have set the option Enable Job Order Processing to Yes in the F11: Features.

To create a godown unit under Excise Tax Unit

  1. Go to Gateway of Tally > Create > type or select Godowns.
    Alternatively, press Alt+G (Go To) >type or select Create Master > type or select Godowns.
  2. Enter the Name of the godown unit.
  3. Select Primary in the field Under.
  4. Select the main excise unit in the field Excise Tax unit.
  5. Press Enter to save. The completed screen appears as shown below:

To create a voucher type for excise Material Out and select the main excise unit

  1. Go to Gateway of Tally > Create > type or select Voucher Type.
    Alternatively, press Alt+G (Go To) >type or select Create Master > type or select Voucher Type.
  2. Enter Name and select Materials Out as the Type of Voucher.
  3. Select the main tax unit in the field Default Tax Unit. The completed screen appears as shown below:
  4. Record an excise material out voucher as shown below:
    Note: You can also select an excise duty ledger and the duty is calculated automatically.
  5. Press Enter to save. While saving this transaction, a confirmation message is displayed.
  6. Click Yes to record a journal voucher.
  7. Debit the expense ledger to bear the excise duty liability of goods removed to another godown or to retain goods internally.Note: The flag of the above transaction is Excise Duty on Movements of Stocks.
  8. View the excise report by going to Gateway of Tally > Display More Reports Statutory Reports > Central Excise Reports > Manufacturer > Form ER-1 / ER-3.
    Alternatively, press Alt+G (Go To) > type or select Form ER-1 / ER-3.
    The excise duty liability of the goods removed to another godown or retained internally for testing is displayed as Duty Payable, as shown below:

Excise for Manufacturer

Excise Journal Adjustments

In excise, the nature of adjustments are provided for various adjustment transactions involving excise duty or service tax, as required by the department. These help in capturing the value for each nature of adjustment in respective fields of excise forms.

To use excise nature of adjustment

  1. Go to Gateway of Tally > Vouchers > press F7 (Journal).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F7 (Journal).
  2. Press Alt+(Stat Adjustment).
  3. Select Excise in Type of duty/tax to display the Nature of Adjustment.
  4. Select the required unit in Tax Unit field. This field is enabled only when multi-unit is enabled, and created for excise.
  5. Press Enter to save.

Note: By default, only the basic nature of adjustments are displayed. Enable the option Allow All Adjustment Types using F12: Configure in Stat Adjustment Details screen to display the entire set of excise nature of adjustments.

Excise for Manufacturer

Sl. No.

Excise – Adjustments in Release 5.x

Excise – Adjustments in Release 4.9x

Purpose and Transaction

1 Adjustment towards Duty Liability

  • Both
  • Capital Goods
  • Inputs
CENVAT Adjustment Select this nature of adjustment when the duty liability or payable amount can be paid using the available CENVAT credit.

Dr. Basic Excise Duty/any other duty head ledger

Cr. Basic Excise Duty/any other duty head ledger

2 Adjustment towards Miscellaneous Payment (Others)

  • Both
  • Capital Goods
  • Inputs
CENVAT Refund/Reversal Select this nature of adjustment when the reversal of erroneous CENVAT credit availed during previous returns can be paid by utilizing the CENVAT credit, and treated as miscellaneous payments.

Dr. Basic Excise Duty/any other duty head ledger

Cr. Basic Excise Duty/any other duty head ledger

3 Adjustment towards Rule 6

  • Both
  • Capital Goods
  • Inputs
CENVAT Reversal (Rule 6) Select this nature of adjustment when CENVAT credit was availed on inputs or capital goods used in manufacturing of exempted items, and the credit availed earlier has to be reversed under Rule 6.

Dr. Expense Ledger

Cr. Basic Excise Duty/any other duty head ledger

4 Excise Duty on Movements of Stocks

  • Both
  • Capital Goods
  • Inputs
Excise Duty on Movements of Stocks Select this nature of adjustment if only the movement stock has taken place during inter unit transfer of stock, and the unit has to create the liability on such goods and remit the duty to the government.

This adjustment appears only for large taxpayer unit, when movement of stock is allowed without duty liability.

Dr. Purchase or Expense Ledger

Cr. Basic Excise Duty/any other duty head ledger

5 Adjustment towards Rounding Off

  • Both
  • Capital Goods
  • Inputs
Rounding Adjustments Amount gets rounded-off automatically in returns. Hence, functionality is not provided for this nature of adjustment.
6 Adjustment towards Other Payments (Arrears)

  • Both
  • Capital Goods
  • Inputs
Select his nature of adjustment when duty liability of previous period is paid during the current period by utilizing the CENVAT credit and treated as other payments – arrears

Dr. Basic Excise Duty/any other duty head ledger

Cr. Basic Excise Duty/any other duty head ledger

7 Adjustment towards removal As Such (Capital Goods)

  • Both
  • Capital Goods
  • Inputs
Select this nature of adjustment when the capital goods are removed as such (sales or purchase returns), and the duty involved in such transactions has to be adjusted towards the available CENVAT Credit.

Dr. Basic Excise Duty/any other duty head ledger

Cr. Basic Excise Duty/any other duty head ledger

8 Adjustment towards removal As Such (Inputs)

  • Both
  • Capital Goods
  • Inputs
Select this nature of adjustment when the principal inputs/sales return of finished goods received are removed as such (sales or purchase returns), and the duty involved in such transactions has to be adjusted towards the available CENVAT Credit.

Dr. Basic Excise Duty/any other duty head ledger

Cr. Basic Excise Duty/any other duty head ledger

9 Adjustment towards Rule 10A

  • Both
  • Capital Goods
  • Inputs
Select this nature of adjustment when the Credit available under the duty head “Additional Duty on Imports (ADC_LVD_CT 75)” is allowed to be transferred from one unit to another branch unit of the same company.

Transferring unit

Dr. Branch/division (unit 2)

Cr. Additional Duty of Imports

Receiving unit

Dr. Additional Duty of Imports

Cr. Branch/division (unit 1)

10 Availment of CENVAT Credit (Capital Goods)

Nature of Purchase:

  • First Stage Dealer
  • Importer
  • Manufacturer
  • Purchase from Importer
  • Second Stage Dealer
Select this nature of adjustment to avail CENVAT credit on capital goods if the duty amount was treated as additional cost during purchase.

Nature of Purchase: Manufacturer, First Stage Dealer, Second Stage Dealer, Purchase from Importer or Imports

Dr. Basic Excise Duty/any other duty head ledger

Cr. Purchase Ledger (Capital Goods)

(Or)

Dr. Basic Excise Duty/any other duty head ledger

Cr. Fixed Assets

Note: The above mentioned transaction of Fixed Assets is recorded:

♦   Without inventory in case of journal.

♦   With inventory in case of debit note.

11 Availment of CENVAT Credit (Inputs)

Nature of Purchase:

  • First Stage Dealer
  • Importer
  • Manufacturer
  • Purchase from Importer
  • Second Stage Dealer
Select this nature of adjustment to avail CENVAT credit on inputs if the duty amount was treated as additional cost during purchase.

Type of stock item: Principal Input or Other Inputs

Nature of Purchase: Manufacturer, First Stage Dealer, Second Stage Dealer, Purchase from Importer or Imports

Dr. Basic Excise Duty/any other duty head ledger

Cr. Purchase (Raw Material)

12 Availment of Credit under Rule 12BB

  • Both
  • Capital Goods
  • Inputs
Select this adjustment to avail credit under Rule 12BB when the company is configured as a large taxpayer unit.

Dr. Basic Excise Duty/any other duty head ledger

Cr. Basic Excise Duty/any other duty head ledger

13 CENVAT Credit Used For Service Tax Payable (Capital Goods)

  • Both
  • Capital Goods
  • Inputs
Select this nature of adjustment when CENVAT credit of capital goods is used to pay service tax liability.

Dr. Service Tax Payable ledger

Cr. Basic Excise Duty/any other duty head ledger (created under Duties & Taxes with CENVAT as Type of duty/tax)

14 CENVAT Credit Used For Service Tax Payable (On Inputs)

  • Both
  • Capital Goods
  • Inputs
Select this nature of adjustment to adjust CENVAT credit availed on purchase of excisable raw material against service tax payable.

Dr. Service Tax Payable ledger

Cr. Basic Excise Duty/any other duty head ledger (created under Duties & Taxes with CENVAT as Type of duty/tax)

15 ISD Credit Received From Service Tax

  • Both
  • Capital Goods
  • Inputs
Select this nature of adjustment, when input service distributor distributes the CENVAT credit with respect to service tax paid on the input service to its manufacturing units.

Dr. Service Tax Input Credit ledger (created under Duties & Taxes/Current Assets)

Cr. Branch/division ledger

16 Service Tax Credit Used For Excise Duty Payable

  • Both
  • Capital Goods
  • Inputs
Select this nature of adjustment when excise duty payable is adjusted against service tax input credit.

Dr. Basic Excise Duty/any other duty head ledger

Cr. Service Tax Input Credit (created under Duties & Taxes/Current Assets)

17 Service Tax Credit Used For Excise Duty Payable (Removal As Such)

  • Both
  • Capital Goods
  • Inputs
Select this nature of adjustment when excise duty payable on Removal As Such is adjusted against service tax input credit.

Dr. Excise Duty ledger (duty payable on Removal As Such)

Cr. Service Tax Input Credit ledger (created under Duties & Taxes/Current Assets)

18 Shortage/Damage/Loss of Excise Stock

  • Both
  • Capital Goods
  • Inputs
Select this nature of adjustment to account for damage/loss of excise stock.

Dr. Expense ledger

Cr. Purchase ledger

19 Adjustment Towards Advance Duty Paid Advance duty payment has been disallowed by the Excise Department as per the latest amendments. Hence, this nature of adjustment has not been provided.

Account Excise Duty Opening Balance

Excise Duty Opening Balance can be recorded in TallyPrime through Excise Duty Opening Balance Journal voucher. The Excise Duty opening balance entry can be recorded on any day of the Financial Year.

To record Excise Duty opening balance

  1. Gateway of Tally > Create > type or select Excise Opening Balance.
    Alternatively, press Alt+G (Go To) >type or select Create Master > type or select Excise Opening Balance.
  2. Enter the Date on which the Excise Opening Balance is accounted for.
  3. Select Basic Excise Duty ledger under Particulars.
  4. Enter the excise duty opening amount in the Amount field. The completed Excise Opening Balance journal voucher appears as shown below:
  5. Press Enter to save.

The excise opening balance will not affect the current period excise computation but will appear in PLA Register. In case, PLA opening balance is also recorded, the net value is displayed in PLA Register.

Accounting for Excise on Actual and Billed Quantity (Excise for Manufacturer)

In an excise invoice, the actual quantity may include stock items which are free of cost. Billed quantity in such invoices excludes the stock items which are given for free. Excise duty is charged on the actual quantity, regardless of the billed quantity. However, you can change the assessable value in the invoice.

  1. Click F12: Configure in excise sales invoice.
  2. Enable the option Modify Tax Rate details for Excise.
    • In case you did not find the above option, enable Show more configurations and Show all configurations
  3. Press Ctrl+A to save.

In the excise sales invoice, press Enter from the Amount column to view the Excise Assessable Value screen and enter the required assessable value for excise duty calculation.

Enter Opening Balance of Service Tax in the Company Enabled for Manufacturer Excise

You can enter the opening balance of service tax in a company enabled with excise for manufacturers, and capture it in Form ER 1 report.

To enter the opening balance of service tax

  1. Gateway of Tally > Create > type or select CENVAT Opening Balance.
    Alternatively, press Alt+G (Go To) >type or select Create Master > type or select CENVAT Opening Balance.
  2. Select CENVAT credit of as InputsCapital Goods, or Both as required.
  3. Select the service tax ledger and enter the amount. The journal voucher appears as shown below:
  4. Press Enter to save.

To print the Form ER 1

  1. Gateway of Tally > Display More Reports Statutory Reports > Central Excise Reports > Manufacturer > Form ER 1.
    Alternatively, press Alt+G (Go To) > type or select Form ER 1.
  2. Press Alt+B (Save) and press Enter to save the Form ER 1.
  3. Select Enter on Form ER 1.
  4. Press Ctrl+P to view the Print Report screen.
  5. Press Enter to print.
    This transaction appears in Form ER 1 as shown below:

Recording Excise Duty Payment (Excise for Manufacturer)

The payment of excise duty can be done from the excise forms using the Stat Payment button.

Payment of duty can be of the following types:

  • Excise duty payment for the return period
  • Arrears
  • Interest

To pay the excise duty

  1. Press Alt+S  (Stat Payment) from the return form.
  2. Enter the period of filing the returns.
  3. Select Regular as the Type of Payment.
    The Stat Payment Details appears as shown below:
  4. Enter details in the Payment transaction as shown below:
  5. Press Enter.

To Pay Arrears

  1. Press Alt+(Stat Payment) from the return form.
  2. Enter the period of filing the returns.
  3. Select Arrears as the Type of Payment.
  4. Select the liability ledger.
  5. Enter the amount.
  6. Select the Type of Payment, as required.
  7. Enter the Source Document Number and Source Document Date.
    The Type of Payment screen appears as follows:
  8. Enter details in the Bank Allocations screen, as applicable.
    The payment transaction for arrears appears as shown below:
  9. Press Enter to save.

To Pay Interest

  1. Press Alt+(Stat Payment) from the return form.
  2. Enter the period of filing the returns.
  3. Select Interest as the Type of Payment.
  4. Enter details as shown below:
  5. Press Enter to save.

Recording Payments and Filing Returns (Excise for Manufacturer)

Before generating the returns form, the transaction for payment of excise duty to the department has to be recorded. The details of the transaction should appear in the return form.

Excise for Manufacturer

Time and Mode of Payment of Duty

The assessees have to pay duty on monthly basis if they are,

  • Large/Regular Units and not availing concession of duty based on turnover, and
  • Availing small scale industries (SSI) concession of duty based on turnover

Duty in respect for clearances made in a month should be paid by 15th of the following month to the government along with G.A.R. -7 Challans.

 

Returns and Timelines

The following Returns are required to be filed under Excise for Manufacturers

Form No

Particulars

Periodicity

Due Date

ER – 1 Monthly Return by Assesses who are not availing the concession of duty based on turnover (large units) (e-returns) Monthly On or before 10th of the following month
Monthly Return by  Assessees who are neither Large Units nor availing concession of duty based on turnover (Regular Units) Monthly On or before 10th of the following month
Monthly Return for CENVAT Monthly Return by large and Regular units Monthly On or before 10th of the following month (With ER-1)
ER – 3 Quarterly Return by Assessees availing small scale industries (SSI) concession of duty based on turnover Quarterly With in 20 days from the close of quarter

Purchase of Raw Materials

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

  1. Gateway of Tally > Vouchers > press F9 (Purchase).
    Alternatively, press Alt+G (Go To) >type or select Create Voucher > press F9 (Purchase).
  2. Press Ctrl+H (Change Mode) > select Excise Invoice.
  3. Enter the Supplier Invoice Number and Date.
  4. Select the required party ledger and purchase ledger.
  5. Select the stock items (principal input).
  6. Enter Quantity and Rate.
  7. Select the Expense ledger and enter the amount.
  8. Select the Excise Duty ledger.
  9. Select the Input VAT ledger.
  10. Press Ctrl+O (Related Reports) > type or select Excise – Tax Analysis.

    Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
    Press Ctrl+I (More Details) > type or select Excise – Tax Analysis.

  11. Press Esc. The completed purchase invoice appears as shown below:
  12. Press Enter to save the transaction.

 

Purchase of Raw Materials to a Different Excise Unit

On 02 April 2020, National Enterprise purchased light filtering lens from Crystal Lens. The stock items were delivered to a godown, which is linked to the excise tax unit Jayant Enterprise.

The stock item details are as below:

Excise for Manufacturer

Stock Item

Quantity

Rate

Light filtering lens Light filtering lens Rs. 2000/ S

To record the purchase transaction

  1. Gateway of Tally > Vouchers > press F9 (Purchase).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F9 (Purchase).
  2. Enter Supplier Invoice No. and Date.
  3. Select Jayant Enterprise as the Tax Unit.
  4. Select the party ledger and purchase ledger.
  5. Select the stock item (principal unit), and enter the quantity and rate.
  6. Select the ledger Excise Duty.
  7. Select the ledger Input VAT.
  8. Press Ctrl+O (Related Reports) > type or select Excise – Tax Analysis.

    Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
    Press Ctrl+I (More Details) > type or select Excise – Tax Analysis.

  9. Press Esc. The completed purchase invoice appears as shown below:
  10. Press Enter to save.

Create Stock Item and BOM

To create the stock item (finished goods)

  1. Gateway of Tally > Create > type or select Stock Item
    Alternatively, press Alt+G (Go To) > Create Master > type or select Stock Item
  2. Press F12 (Configure) and set the option Set Component List (Bill of Materials) in Stock Items.
  3. Enter the Name of the stock item.
  4. Select the required stock group in the field Under.
  5. Select the required unit of measure in the Units field.
  6. Enable the option Set Components (BOM).
  7. Enter the BOM Name as Spectacles.
  8. Press Enter.
  9. Enter components for the stock item as shown below:
  10. Select Applicable in the field Is Excise Applicable. The Excise Details screen with all the tariff details appear as shown below:
  11. Select the Type of stock item as Finished Goods.
  12. Enter the Conversion factor as 1 No=1 U.
  13. Press Enter.
  14. Select Applicable in the field Is VAT Applicable, if required.
  15. Press Enter.
  16. Press Enter to save.

 

Record a Manufacturing Journal

Excise for Manufacturer

  1. Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Stock Journal.
    Alternatively, press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Stock Journal.
  2. Press Ctrl+H (Change Mode) > type or select Use for Manufacturing Journal.
  3. Select the Tax Unit.
  4. Enter details as shown below:
  5. Press Enter to save.

Recording Excise Sales Transaction

To record excise sales transaction

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
  2. Press Ctrl+H (Change Mode) > select Excise Invoice
  3. Select National Enterprise as the Tax Unit. The Excise Book Name and the Rule 11 Serial No are displayed automatically.
  4. Enter details as shown in the image below:
  5. Press Enter to save.

 

Generating Rule 11 Invoice

Printing the excise sales invoice will generate the rule 11 invoice. To generate the rule 11 invoice

  1. Press Ctrl+P (Print Current) from the excise sales invoice.
  2. Press Enter in the Voucher Printing screen.

Recording Excise Sales of Jewellery Goods (Excise for Manufacturer)

You can record sale of jewellery for excise as per Rule 8 of the Articles  of Jewellery Rules, 2016, in TallyPrime.

To record excise sales transaction for jewellery goods

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) >type or select Create Voucher > press F8 (Sales).
  2. Press Ctrl+H (Change Mode) > select Excise Invoice.
  3. Enter Supplier invoice no., if required.
  4. Select the required Tax Unit. The Excise Book Name and the Rule 8 Serial No are captured by default.
  5. Select the party ledger in the field Party’s A/c Name.
  6. Select a sales ledger where Set/Alter excise details is not enabled.
  7. Select the required stock items whose excise rates are specified either at the stock group level, or at the stock item level. Enter Quantity and Rate for each stock item.
  8. Select the required excise duty ledger, as shown below:
  9. Press Enter to save.

Generating Rule 8 Invoice

You can print the excise sales invoice to generate the Rule 8 invoice.

To generate the rule 8 invoice

  1. Press Ctrl+P (Print Current)
  2. Press C (Configure) > type or select Number of copies under Printer Settings
  3. Specify the Number of Copies and select the Type of Copy.
    Note: When more than one copy of the invoice is printed, the copy title will be: First copy: Original for Buyer Second Copy: Duplicate for Assessee Third Copy and later: Not for CENVAT
  4. Press Enter to select, and return to the Voucher Printing screen, as shown below:
  5. Press Enter to print.

Interstate Sale of Excisable Goods

To record an excise sales transaction

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > type or select Create Voucher > press F8 (Sales).
  2. Press Ctrl+H (Change Mode) > select Excise Invoice
  3. Enter the reference number in Ref. field.
  4. Select the Tax Unit. The Excise Book Name and the Rule 11 Serial No are displayed automatically.
  5. Select the party ledger in Party’s A/c Name option.
  6. Set the option Is Against C Form to Yes in Party Details screen. This option appears only when the state selected is other than Karnataka.
  7. Select a common sales ledger in which the options Is VAT/CST Applicable is set to Applicable, and Set/Alter VAT Details is set to No.
  8. Select the required stock item.
    Note: If the option Is Against C Form? is set to Yes in Party Details screen, the tax gets calculated at 2% CST rate, irrespective of the tax rates defined in the inventory or accounting masters.
  9. Select the excise duty ledger.
    The ledger must be grouped under Duties & Taxes in which the options:

    • Type of duty/tax is set to CENVAT.
    • Duty Head set to Basic Excise Duty.
    • Percentage of Calculation (eg 5) set to 12.5%.
  10. Select the common CST ledger.
    The ledger must be grouped under Duties & Taxes in which the options:

    • Type of duty/tax is set to CST.
    • Percentage of Calculation (eg 5) is set to 0.
  11. Set the option Provide VAT Details to Yes to view the Statutory Details screen.
    In the Statutory Details screen,

    • Enter the C Form details. The Statutory Details screen appears as shown below:
    • Enter the e-Sugam Details.
    • Press Enter to save, and  return to sales invoice.
  12. The sales invoice appears as shown below:
  13. Press Enter to save.

Generating Rule 11 Invoice

Print the excise sales invoice to generate the rule 11 invoice.

To generate the Rule 11 invoice

  1. Press Ctrl+P (Print Current) from the excise sales invoice.
  2. Press Enter in the Voucher Printing screen.

Configure MRP based Tax Calculation

  1. Gateway of Tally > Alter > type or select Stock Item.
    Alternatively, press Alt+G (Go To) > Alter Master > type or select Stock Item.
  2. Enable the option Set/alter excise details.
  3. Press F12 (Configure) in the Excise Tariff Details screen.
  4. Enable the option Enable Tax Based on MRP.
  5. Press Ctrl+A.
  6. Enable the option Calculate Duty on MRP.
  7. Enter Abatement%, as required.

 

Define MRP Details

  1. Enable the option Set/alter MRP details in the stock item master.
    If you do not see this option, press F12 (Configure).

    • Set Show more configurations to Yes
    • Set Provide MRP Details to Yes.
  2. Press Enter.
  3. Press Alt+W (Details).
  4. Enter MRP Details.
  5. Press Enter.
  6. Press Enter to save the MRP details screen.

 

Record an MRP Sales Transaction

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
  2. Press Ctrl+H (Change Mode) > select Excise Invoice
  3. Select National Enterprise as the Tax Unit. The Excise Book Name and the Rule 11 Serial No are displayed automatically.
  4. Enter details as shown in the image below:
  5. Press Ctrl+O (Related Reports) > type or select Excise – Tax Analysis.

    Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
    Press Ctrl+I (More Details) > type or select Excise – Tax Analysis.

  6. Press Esc.
  7. Press Ctrl+A.

Similarly, you can define MRP details for a specific period, and record the invoice. The duty rate will be calculated on the MRP rate defined.

 

Configure MRP State-wise

  1. Enable the option Set/alter MRP details in the stock item master.
  2. Press F12 (Configure).
  3. Enable Allow state-wise MRP.
  4. Select the State and enter the MRP.
    The MRP Details screen appears as shown below:
  5. Press Enter.

Depending on the state selected in the party ledger, the MRP will be calculated in the transaction.

 

Activate Sales Inclusive of Tax in the Stock Item

  1. Press F12 (Configure) in the stock item master.
  2. Enable the option Allow inclusive of tax for stock items.
  3. Press Ctrl+A.
  4. Enable the option Is Inclusive of Duties and Taxes. The stock item master appears as shown below:

 

Record the Sales Transaction Inclusive of Tax

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
  2. Press Ctrl+H (Change Mode) > select Excise Invoice.
  3. Select National Enterprises as the Tax Unit. The Excise Book Name and the Rule 11 Serial No are displayed automatically.
  4. Select Cash in the field Party’s A/c Name.
  5. Select the Sales ledger.
  6. Select the stock item from the List of Stock Items.
  7. Enter the Godown and Quantity of stock item in the Item Allocations screen.
  8. Enter the Rate (Inclusive of Tax).

    Note: Enable the option Provide support for inclusive of tax for stock item rate to display Rate (Inclusive of Tax) as a column in the Item Allocations screen. This column will be displayed in the sales invoice screen too.The rate of the stock item and amount get pre-filled in the Item Allocations screen. Note that using the rate inclusive of tax that has been entered, the sale value of the stock item has been back calculated.
  9. Press Enter.
  10. Select the Excise Duty ledger and Output VAT ledger.
  11. Press Ctrl+(Related Reports) > type or select Excise – Tax Analysis. Based on the duty rates defined, excise duty and VAT have been calculated.

    Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
    Press Ctrl+(More Details) > type or select Excise – Tax Analysis. Based on the duty rates defined, excise duty and VAT have been calculated.

  12.  Press Esc. The completed sales transaction appears as below:
  13. Press Enter to save.

Supplementary Invoice for Difference in Duty Rate

On April 1 2020, National Enterprise sold 20 Oval Eyeglasses – T1234 to AKB Eye Care Foundation. Unaware of the change in the excise duty rate from 12% to 12.5% National Enterprise recorded the sales with excise duty @ 12%. On May 01 2020, National Enterprise charge the difference in duty rate by issuing a supplementary invoice.

To record supplementary invoice in TallyPrime for difference in Duty Rate, follow the steps given below.

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > type or select Create Voucher > press F8 (Sales).
  2. Press Ctrl+H (Change Mode) > type or select Supplementary Invoice.
  3. Select the Tax Unit.
  4. Select the Party A/c Name.
  5. Select the Excise Book Name.
  6. Enter details of the original invoice in the
    Party Details screen

    1. Enter the period in which the original invoice was recorded.
    2. Select the Excise Invoice No. of the original invoice number.
    3. Date of the invoice and the rule 11 book name are captured automatically.
    4. Enter the details as required, to complete the Party Details screen.
  7. Select the Sales ledger.
  8. Select the Stock Item Name.
  9. Enter 12.5% in the field Revised Rate.
  10. Select the Godown.
  11. Enter 2800 in the field Revised Rate. As there is no difference in item rate, the field Amount is blank.
    The Item Allocations screen appears as shown below:
  12. The supplementary invoice appears as shown below:
    The difference in duty amount is displayed as excise duty in the supplementary invoice.
  13. Press Enter to save.

To Generate Rule 11 Invoice

  1. Press Ctrl+P (Print).
  2. Press I (Preview).
    The Supplementary Invoice appears as below:

Supplementary Invoice for Difference in Stock Item Rate

National Enterprise had revised the rates of Oval Eyeglasses – T1234 to Rs. 3000. However, erroneously in the sales invoice to Lotus Opticals, they had recorded the item price as Rs. 2700. To charge duty on the difference amount, a supplementary invoice was issued on 1 May, 2020.

Excise for Manufacturer

To record supplementary invoice in TallyPrime for difference in Stock Item Rate, follow the steps given below.

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > type or select Create Voucher > press F8 (Sales).
  2. Press Ctrl+H (Change Mode) > type or select Supplementary Invoice.
  3. Select the Tax Unit.
  4. Select the Excise Book Name.
  5. Select the Party’s Name.
  6. Enter details of the original invoice in the
    Party Details screen

    1. Enter the period in which the original invoice was recorded.
    2. Select the Excise Invoice No. of the original invoice number.
    3. Date of the invoice and the rule 11 book name are captured automatically.
    4. Enter the details as required,  to complete the Party Details screen
  7. Select the Sales ledger.
  8. Select the Stock Item Name.
  9. Select the Godown.
  10. Enter 3000 in the field Revised Rate. The amount is calculated automatically.
    The Item Allocations screen appears as shown below:
  11. Press Enter to save.
    The supplementary invoice appears as shown below:

To Generate Rule 11 Invoice

  1. Press Ctrl+P (Print).
  2. Press (Preview). The Supplementary Invoice appears as below:

Similarly, on entering the revised duty rate, and the revised stock item rate in the item allocations screen, the difference in amount will be appropriately calculated in the supplementary invoice.

Excise for Manufacturer

Stock Transfer Out

To record material out transaction

  1. Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Material Out.
    Alternatively, press Alt+G (Go To) >type or select Create Voucher > press F10 (Other Vouchers) > type or select Material Out.
  2. Press Ctrl+H (Change Mode) > select Excise Invoice.
  3. Press F12 (Configure).
  4. Set the option Allow modification of Nature of Removal to Yes.
  5. Press Ctrl+A.
  6. Select National Enterprise as the Tax Unit.
  7. Select Excise Book Name from the List of Excise Books.
  8. Select the branch ledger as the Party’s A/c Name.
  9. Select Inter Unit Transfer as the Nature of Removal.Note: To enable the option Inter Unit Transfer as the Nature of Removal: – Press F11 (Features) > set the option Enable Excise to Yes. – Enable the option Set/alter excise details. – Press F12 (Configure). – Set the option Enable Large Tax Payer Unit (LTU) to Yes. – Press Ctrl+A to save. – Set the option Is company a Large Tax payer Unit (LTU) to Yes in the Excise Registration Details screen.
  10. Select the required Destination Godown.
  11. Select the Stock Item to be transferred.
  12. Enter the GodownQuantity and Rate in the Stock Item Allocations screen.
  13. Select the Excise Duty ledger. The completed Material Out voucher is as shown below:
  14. Press Enter to save.
  15. Select Yes for the message prompt Create Liability Voucher. A journal voucher with the flag Excise Duty on Movement of Stocks is automatically created to raise the tax liability as shown below:

 

Stock Transfer In

National Enterprise received 500 set of light filtering lens from their branch unit. Basic excise duty of 12.5% is applicable on the stock transfer of goods.

Excise for Manufacturer

To record material in transaction

  1. Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Material Out.
    Alternatively, press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Material Out.
  2. Press Ctrl+H (Change Mode) > select Excise Invoice.
  3. Select National Enterprise as the Tax Unit.
  4. Select Excise Book Name from the List of Excise Books.
  5. Select the branch ledger as the Party’s A/c Name.
  6. Select the required Destination Godown.
  7. Select the Stock Item to be transferred.
  8. Enter the GodownQuantity and Rate in the Stock Item Allocations screen.
  9. Select the Excise Duty ledger. The completed Material In voucher transaction appears as shown below:
  10. Press Enter to save.
  11. Select Yes for the message prompt Avail Cenvat Credit.
    A journal voucher with the flag Excise Duty on Movement of Stocks is automatically created to avail CENVAT credit as shown below:

To record sales transaction for exports to SEZs

Excise for Manufacturer

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) >type or select Create Voucher > press F8 (Sales).
  2. Press Ctrl+H (Change Mode) > select Excise Invoice
  3. Enter Supplier invoice no., if required.
  4. Select the required Tax Unit. The Excise Book Name and the Rule 11 Serial No are captured by default.
  5. Select the party ledger in the field Party’s A/c Name. Enter the required details in Party Details screen.
  6. Select SEZ/LUT in Nature of Removal.
  7. Select a sales ledger where Set/Alter excise details? is not enabled.
  8. Select the required stock items whose excise rates are specified either at the stock group level, or at the stock item level. Enter Quantity and Rate for each stock item.Note: The manufacturer can select the Nature of Removal as SEZ/Bond incase the goods are being cleared under Bond. SEZ/Rebate can be selected to clear goods by charging Excise Duty.
  9. Enable Set/Alter ARE Details. Enter the details as required in the Form ARE Details sub-screen:
  10. Press Enter to accept the screen and return to Voucher Creation screen.
    The completed entry appears as shown below:
  11.  Press Enter to save.

Read Also Excise Classification and Excise Duty Classification 

 

Leave a Reply

Your email address will not be published.

error: Content is protected !!
%d bloggers like this: