EXCISE DUTY

EXCISE DUTY

Excise duty is a tax on goods produced or manufactured in India and intended home consumption. Home consumption means goods sale in India.

Excise duty is chargeable at the time of removable.

Rate of excise duty:

      1)    Basic Excise Duty: - Rate 16% (on assessable value).

      2)    Educational Cess: - Rate 2% (on excise duty).

      3)    Secondary Educational Cess: - Rate 1% (on excise duty).

Excise Valuation Method:-

At the time of production:-

       1.    Adquantum method: - Excise duty is payable on the basis of certain unit like weight, length etc.

At the time of removable:-

       2.    Advalorem method:- It consists following facts:

                               I.            The goods sold at the time and place of removable.

                             II.            Buyer should not be related with any other country.

At the time of light quantity (low quantity):-

      3.    MRP: - It means maximum retail price on which the exciseable goods are sold to the consumer.

Working steps:-

Create a company and then activate Excise Duty as follow:

To Activate Excise Duty: - G.O.T. (Gateway of Tally)--> Press F11 (Company Features)--> Press F3 (Statutory & Taxation).

And then create ledger:

Path for ledger creation: - G.O.T. (Gateway of Tally)--> Accounts Info--> Ledger--> Create (Single).

Create voucher types as follow:-

Path for voucher types creation: - G.O.T. (Gateway of Tally)--> Inventory Info--> Voucher Types--> Create (Single).

And then create tariff classification:-

Path for Tariff Classification creation (international identity of goods):- G.O.T. (Gateway of Tally)--> Inventory Info--> Tariff Classification--> Create.

Now create stock master as follow:-

To create stock group: - G.O.T. (Gateway of Tally)--> Inventory Info--> Stock Group--> Create (Single).

To create stock item: - G.O.T. (Gateway of Tally)--> Inventory Info--> Stock Item--> Create (Single).

Here, first create grombar stock item:

Now create steel sheet stock item:

And then create hot rolled beam stock item:

Now do voucher entry:-

Path for voucher creation: - G.O.T. (Gateway of Tally)--> Inventory Voucher--> Press F9 (Purchase Voucher)--> Excise Purchase.

Press F8 to open Sales Voucher.

See the report:-

Path for view Excise report: - G.O.T. (Gateway of Tally)--> Display--> Statutory Report--> Excise Report--> Manufacturer--> Excise Computation.

Now do Payment Voucher entry:-

Path for voucher creation: - G.O.T. (Gateway of Tally)--> Accounting Voucher--> Press F5 (Payment Voucher)--> Press F12 (Configuration).

All the payment have been made.