Lesson 20: Excise for Dealers

Lesson Objectives On completion of this lesson, you will be able to understand 1 Basic terms related to Excise Enable Dealer Excise in Tally.ERP 9

Excise for Dealers

reate !asters and "ed#ers related to Excise $ow to Record Excise transactions for dealers %enerate Excise &n'oice as per Rule ((
%enerate and Print Excise related )tatutory Reports

Excise duty or Duty of Excise is a tax on #oods produced or manufactured in &ndia and intended for consumption in &ndia. The Excise duty is le'ied at the time of production or manufacturin# but for con'enience is collected at the time of remo'al. &t is an indirect tax on the manufacturer or producer which is passed on to the ultimate consumer. The le'y and collection of duty of Excise is pro'ided under the authority of the entral Excise *ct, (9++, at the rates specified under the entral Excise Tariff *ct, (9,-. The duty is commonly referred to as the Basic Excise Duty. ertain items li.e fibre, yarn and so on also attract *dditional Excise Duty under the *dditional Duties of Excise /Textiles and Textile *rticles0 *ct, (91-. 20.1 Basic concepts The followin# are some of the basic terms related to Excise. Excisable Goods Excisable #oods are #oods specified in the schedule under the (9,- as bein# sub2ect to a duty of excise. The basic conditions to be satisfied are as follows3

entral Excise Tariff *ct,

2 2

The #oods must be3 a. !o'able. b. !ar.etable3 The actual sale of #oods in the mar.et is not necessary as excise duty is char#e able on manufacture and not on sale. c. )pecified in the entral Excise Tariff *ct. Dealer Goods of Excisable entral

* dealer of excisable #oods is a person who is re#istered under the dealer3

Excise Rules. *ny of the followin# cate#ories can be applicable to a re#istered (. Depot of a manufacturer or the premises of the consi#nment a#ent of the manufacturer or any other premises from where the #oods are sold on behalf of the manufacturer. 4. 5irst sta#e dealer of excisable #oods. 6. )econd sta#e dealer of excisable #oods. +. Depot of an importer or the premises of the consi#nment a#ent of the importer. -. 5irst sta#e dealer of imported #oods. 7. )econd sta#e dealer of imported #oods. First Dealer Sta e

* 5irst )ta#e Dealer is a person who purchases the #oods directly from3 i. The manufacturer re#istered under the pro'isions of entral Excise Rules, 4884, or represent9 ati'e of such manufacturer, under co'er of an in'oice. ii. *n importer or from the representati'e of such importer, under the co'er of an in'oice. Second Dealer Sta e

* )econd )ta#e Dealer is a person who purchases the #oods from a first sta#e dealer. !e istration of Dealers E'ery Dealer or &mporter issuin# en'atable &n'oices should be re#istered with the 2urisdictional Ran#e )uperintendent as per the procedure prescribed in Rule 9 of the entral Excise /:o. 40 Rules 488(. The re#istration is 'alid only for the premises for which it is #ranted. &n cases where the manufacturer or dealer, has more than one premise, it is necessary to obtain a separate re#is9 tration for each premise. The re#istration numbers are P*: based (- di#it alpha numeric. The first part denotes (8 character /alpha numeric0 Permanent *ccount :umber issued by &ncome tax authorities and the second part comprises of a fixed 4 character alpha code which is as follows3
S."o. (. 4. #ate or$ entral Excise !anufacturers Re#istered Dealers #od e ;! ;D

Excise for Dealers

This is followed by three character numeric codes < 88(, 884, 886, which denotes the number of premises re#istered by the manufacturer or the dealer. #E"%&' #redit * manufacturer or producer of final products is allowed to ta.e tax credit .nown as E:=*T credit on the followin# payments3 i. Duty of excise specified in the 5irst and )econd )chedule to the Excise Tariff *ct /ED0. ii. *dditional duty of Excise le'iable under *dditional Duties of Excise /Textile and Textile *rticles0 /*ED >T and T*?0. iii. *dditional duty of Excise le'iable under *dditional Duties of Excise /%oods of )pecial &mpor9 tance0 /*ED >%)&?0. i'. The :ational alamity ontin#ent duty /: D0 le'iable under 5inance *ct. '. Education ess on excisable #oods. 'i. *dditional Duty le'iable under ustoms Tariff *ct. * manufacturer of excisable #oods can a'ail of E:=*T credit for duty paid on the inputs purchased and utilise the same for the payment of excise on any final product.

20.2 Enablin Dealer Excise in 'all$.E!( )

The Dealer Excise module in Tally.ERP 9, facilitates complete Excise *ccountin# for dealers en#a#ed in the tradin# of excisable #oods and desirin# to issue cen'atable in'oices. &t minimises the possibility of erroneous data entry and ensures transparency and better le'els of compliance with the statutes. &t ta.es a one9time confi#uration in Tally.ERP 9 for Dealer Excise features to be acti'ated.

20.2.1 Salient Feat*res of Dealer Excise

The followin# are the salient features of the excise module3 i. )imple and user9friendly. ii. Easy to setup and use. iii. %enerates Excise &n'oice raised by first and second sta#e re#istered dealers to pass on en9 'at redit. i'. *llows Batch9wise &n'entory details. '. Pro'ides an option to print details of !anufacturer@ )upplier and all other rele'ant particulars of the correspondin# purchase in'oice. 'i. Trac.s the item history of excisable #oods, ri#ht from the instance of purchase till the time of sale@ passin# @ termination of en'at redit. 'ii.%enerates statutory returns and excise related reports such as 5orm && and )toc. Re#ister. 'iii.Pro'ides the flexibility ad2ust unassi#ned en'at redit well within the prescribed lapse period.!onnet &spat A to Ener#y "td.

ix. 5acilitates 'arious Excise duty parameters li.e BED, *ED /%)&0, )ED, : 5

D, *ED /T

Excise for Dealers

Excise for Dealers

and T*0, *ED /T and TB0 and Education

ess.

Excise for Dealers

20.+ Enablin Dealer Excise in 'all$.E!( ) &t ta.es a one9time confi#uration in Tally.ERP 9 for Excise features to be acti'ated. 5ollow the steps #i'en below to enable Excise in Tally.ERP 9 for a new company ,onnet -spat . Ener $ Ltd. reate ompany Enable Excise Enable =*T

Monnet Ispat & Energy Ltd., is dealing in Iron & Steel products such as Hot & Cold Rolled Coils,Sheets etc. 20.+.1 #o/pan$ Set*p %o to Gate0a$ of 'all$ 1 &lt 2 F+: #o/pan$ -nfo. 1 #reate #o/pan$ &n the #o/pan$ #reation screen, )pecify ,onnet -spat . Ener $ Ltd. as the #o/pan$ "a/e and &ddress details )elect -ndia in the Stat*tor$ #o/pliance for field )pecify the State3 (in code . &cco*nts 0it4 -nventor$ details )pecify Financial 5ear Fro/ . Boo6s be innin fro/ date as 1787200) The completed #o/pan$ #reation screen is displayed as shown below 3

Excise for Dealers

Figure 20.1 Company Creation screen Press 5 or Enter to accept the screen.

Excise for Dealers

Set*p: %o to Gate0a$ of 'all$ of !onnet &spat A Ener#y "td. and press F11: Feat*res 9Stat*tor$ . 'axation Feat*res:. )et Enable Dealer ; Excise to 5es )et Set<&lter Dealer Excise Details to 5es

The Stat*tor$ . 'axation features screen appears as shown

Figure 20.2 Company Operations Alterations Press Enter3 to 'iew the Excise !e istration Details screen

&n the Excise !e istration Details sub form appears as shown

Excise for Dealers

Figure 20.3

!cise "egistration #etails $creen

(. !e istration '$pe3 )elect Dealer from Re#istration Types list 4. &ddress3 'elep4one "o and (-" #ode3 *ddress, Telephone :o. and P&: ode details are captured from the company creation screen. &f reCuired, it can be altered. 6. Excise Details3 Dnder this section pro'ide Excise Details of the unit. Excise Details will be specific to the Re#istration Type selected.

Registration Type selected will be displayed below the heading Excise

Details to identify the unit as a manufacturer or a dealer.

10

Excise for Dealers

+. =nit ,ailin "a/e3 The ,ailin "a/e entered in the company creation will be displayed as the Dnit !ailin# :ame. &f reCuired, it can be altered.

11

Excise for Dealers

a!e entered in the "nit Mailing a!e will be used in all Excise Reports.

-. Excise !e istration 9E##: "o.3 Enter 1> di#its Excise Re#istration :umber /E 0 of the ompany@Dnit, e.#. ,-EB&+201!?D001 7. Date of !e istration3 Enter the date of Excise re#istration, e.#. 0170>72001 1. Ot4er Details3 &n this section enter !an e3 Division and #o//issionerate details !an e3 Enter the code :ame and *ddress of the ran#e under which your company is re#9 istered. #ode3 Enter Ran#e ode as 0@0+A2 "a/e3 Enter Ran#e :ame as 5elan6a - &ddress3 Enter the !an e &ddress Division3 Enter the code :ame and *ddress of the di'ision under which your company is re#istered. ode3 Enter Di'ision ode as 0)0+ :ame3 Enter Di'ision :ame as Division - *ddress3 Enter the Division &ddress #o//issionerate3 Enter the code :ame and *ddress of the ommissionerate under which your company is re#istered. ode3 Enter ommissionerate ode as 0@ :ame3 Enter ommissionerate :ame as Ban alore -% *ddress3 Enter the #o//issionerate &ddress

12

Excise for Dealers

Figure 20.4 Complete% !cise "egistration #etails ,. Press Enter to accept and sa'e Excise re#istration Details 20.+.2 Enablin %&' To enable %&' 5eature, for a company )et the option Enable %al*e &dded 'ax 9%&': to 5es. Enable the option Set<&lter %&' Details to 5es. )pecify the #o/pan$ %&' Details as shown below

13

Excise for Dealers

Figure 20.5 &A' #etails )pecify the %&' '-" "o.3 -nter7state Sales tax and #o/pan$Bs (&" < -nco/e ; 'ax "o details.

The completed Stat*tor$ . 'axation Feat*res screen appears as shown 3

14

Excise for Dealers

Figure 20.6 Company Operations Alterations Press 5 or Enter to accept the screen.

20.8 #reatin ,asters 20.8.1 %o*c4er '$pe Set*p reate Excise (*rc4ases and Excise Sales %o*c4er '$pes, to record Excise transactions with the reCuired specifications.
%o*c4er '$pes Excise 9 Purchases Excise 9 )ales '$pe of %o*c4e Purchas e )ales &bbreviat e Ex9Purc Ex9)ale =se for Excis Ees Ees Defa*lt Excise =nit !onnet &spat A Ener#y "td. !onnet &spat A Ener#y "td. i. %o*c4er '$pe #reation C Excise (*rc4ases

15

Excise for Dealers

%o to Gate0a$ of 'all$ 1 &cco*nts -nfo. 1 %o*c4er '$pes 1 #reate (. Enter Excise (*rc4ases as "a/e of the =oucher Type. 4. )elect the '$pe of %o*c4er as (*rc4ase from the list of 'oucher types.

16

Excise for Dealers

6. Type the &bbr. as Ex7(*rc. +. )elect the ,et4od of %o*c4er "*/berin as &*to/atic. -. By default =se #o//on narration is set to 5es. 7. )et =se for Excise to 5es. 1. &n Defa*lt Excise =nit field select ,onnet -spat . Ener $ Ltd. from the List of Excise =nits The completed Excise 7 (*rc4ase %o*c4er '$pe screen is displayed as shown below3

Figure 20.7 &ouc(er 'ype Creation ) !cise *urc(ases

,. Press 5 or Enter to accept the screen. ii. %o*c4er '$pe #reation C Excise Sales %o to Gate0a$ of 'all$ 1 &cco*nts -nfo. 1 %o*c4er '$pes 1 #reate (. Enter Excise Sales as "a/e of the =oucher Type. 4. )elect the '$pe of %o*c4er as sale from the list of 'oucher types. 6. Type the &bbr. as Ex7Sale. +. )elect the ,et4od of %o*c4er "*/berin as &*to/atic. -. By default =se #o//on narration is set to 5es. 7. )et =se for Excise to 5es. 1. &n Defa*lt Excise =nit field select ,onnet -spat . Ener $ Ltd. from the List of Excise =nits ,. )et (rint after savin %o*c4er to 5es. 9. Type the Defa*lt (rint 'itle as -nvoice. (8.-s 'ax -nvoice3 5es.

17

Excise for Dealers

((.Type the Declaration, if any.

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Excise for Dealers

The completed Excise Sales %o*c4er '$pe screen is displayed as shown below3

Figure 20.8 &ouc(er 'ype Creation ) !cise $ales

(4.Press 5 or Enter to accept the screen.

20.8.2 #reatin Led ers

reate Purchases, )ales and Party led#ers with the reCuired Excise options. i. #reate (art$ Led er Led er Bhar#a'an )teels Step 1: %o to Gate0a$ of 'all$ 1 &cco*nts -nfo. 1 Led ers 1 #reate (. Enter the "a/e of the )upplier in the "a/e field. E.#. B4ar avan Steels. 4. )elect S*ndr$ #reditors as the #roup name in the =nder field. 6. )et ,aintain Balances Bill b$ Bill to 5es and enter the Defa*lt #redit (eriod if any. +. )et -nventor$ %al*es are affected to "o -. &n the ,ailin Details and 'ax -nfor/ation section enter the supplier contact details, &ncome Tax and the )ales Tax numbers. =nder )undry reditors ,aintain balances bill7b$7bill E e Excise Details E e

19

Excise for Dealers

7. Enable Set<&lter %&' Details to 5es to display the %&' Details sub screen.

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Excise for Dealers

1. &n the %&' Details screenF )elect the !e istered Dealer as '$pe of Dealer from the Type of =*T Dealer list.

Enter the '-"<Sales 'ax "o. of the customer e.#. DEF"">@G0&

,. Enable Set<&lter Excise Details to 5es to display the Excise Details screen. Ensure that the led er creation screen appears as shown below3

21

Excise for Dealers

Figure 20.9 +e%ger Creation ) ,(arga-an $teels

9. &n the Excise Details screen, Enter the Excise !e istration "*/ber of the supplier. E.#. &FSDS00>GF?D00)

Enter the Date of Excise !e istration in Date of !e istration field. E.#. 1>7F*n72002 Enter the !an e under which the supplierGs company is re#istered. E.#. 5es40ant4p*r Enter the Division under which the supplierGs company is re#istered. E.#. Division -Enter the #o//issionerate under which the premise of the )upplierGs company is re#is9 tered. E.#. Ban alore --)elect the Defa*lt "at*re of (*rc4ase as ,an*fact*rer from :ature of Purchase list

The default type of purchases depends upon the status of the supplier, whether he is a Manufacturer / First Stage Dealer / Importer / Second Stage Dealer/ gent of Manufacturer/!urchase from Importer.

22

Excise for Dealers

The completed Excise Details screen appears as shown below 3

Figure 20.10

!cise #etails screen

Press #trl2& to accept the Excise Details screen. *ccept the led#er creation screen.

)imilarly create a led#er < Fa$6ant4 En ineerin under S*ndr$ Debtors with the necessary Excise details and the default nature of purchase as a Second Sta e Dealer.

Tally."#! $ allows you to modify the during a %oucher entry, if re&uired.

ature o# purchase

ii. #reate Sales Led er 23

Excise for Dealers

%o to Gate0a$ of 'all$ 1 &cco*nts -nfo. 1 Led ers 1 #reate

Led er =nder -nventor $ val*es are affected E e s =sed in %&' !et*r ns E e s %&'<'ax #lass

)ales < Excisable %oods

)al es *ccoun

)ales H +I

24

Excise for Dealers

Ensure that the completed Sales ; Excisable Goods led#er appears as shown below3

Figure 20.11 +e%ger Creation ) $ales . !cisa/le 0oo%s

Press 5 or Enter to accept the led#er creation screen.

iii. (*rc4ase Led er Led er Purchases < Excisable %oods iv. %&' Led er -nventor $ val*es are affected : o =nder Purchas e *ccounts -nventor$ val*es are affected E e s =sed in %&' !et*rns E e s %&'<'ax #lass Purchases H +I

Led er &nput =*T H +I

=nder Duties A Taxes

'$pe of D*t$<'ax = *T

%&'<'ax #lass &nput =*T H +I

25

Excise for Dealers

20.8.+ #reatin Stoc6 -te/s

&n order to enter the transactions for Purchase and )ales, create the )toc. items with the unit of measure. This will enable you to raise the &tem in'oice and #et the stoc. summary with all the item details. 'ariff #las7 sificatio $ot Rolled oils 1441(88 8 %o to -nventor$ -nfo. 1 Stoc6 -te/s 1 #reate "a/e =O , !T Step 1: #reate Stoc6 -te/ (. Enter the "a/e of the item as Eot !olled #oils. 4. )pecify the Gro*p as (ri/ar$. 6. Define the =nits as ,' /!etric Tonnes0. +. &n 'ariff #lassification field, select the applicable tariff classification e.#. A22A1000 from the List of 'ariff #lassifications /Dse &lt 2 # to create 'ariff #lassifications0. -. Enable Set<&lter Excise Details to 5es to display the Excise Details sub screen Stoc 6 Gro *p Primary Set<&lt er Excis eE e %al*atio n '$ *d =alorem !ate Of %& + I

Figure 20.12 $toc1 2tem Creation

7. &n the Excise Details )creen

Excise =nit "a/e3 By default, Tally.ERP 9 displays ,onnet -spat . Ener $ Ltd as Excise

26

Excise for Dealers

Dnit :ame. !eportin =O,3 By default the unit of !easurement selected under Dnits will be consid9 ered as DO! for all the reports.

27

Set<&lter D*t$ Details3 )et this field to 5es to 'iew the D*t$ Details screen.

Figure 20.13

!cise #etails

&n D*t$ Details screen

)elect the Basic Excise D*t$ in the T$pe of D*t$ field from the List of Excise D*t$ #lassifications

)pecify the !ate of D*t$ as 1@H )elect the Ed*cation #ess as the second duty in the '$pe of D*t$ field from the "ist of Excise Duty classifications )pecify the !ate of D*t$ as 2H )elect the Secondar$ Ed*cation #ess as the third duty in the '$pe of D*t$ field from the "ist of Excise Duty classifications. )pecify the !ate of D*t$ as 1H The completed D*t$ Details screen appears as shown below3

Figure 20.14 #uty #etails 1. *ccept to sa'e Excise D*t$ Details screen. ,. !ate of %&' 9H:3 in this field enter the !ate of %&' applicable for the )toc. &tem e.#. 8H The completed Stoc6 -te/ creation screen appears as shown below 3

Figure 20.15 $toc1 2tem Creation

In cases, where the e'cisable commodity attracts dditional duties of "'cise and Special duties of "'cise, these can be acti%ated as re&uired from the screen shown. 9. Press 5 or Enter to accept the screen. 20.> Enterin 'ransactions *ccordin# to the pro'isions mentioned in the entral Excise Rules, 4884, a )ellin# Dealer is eli#ible to pass #E"%&' #redit to the purchasin# dealer pro'ided they are re#istered. )uch a sale should be made under the co'er of an in'oice issued in terms of the pro'isions of entral Excise. The followin# chart shows the flow of purchase and sales between the !anufacturer, *#ent of !anufacturer, 5irst )ta#e Dealer or )econd )ta#e Dealer and the passin# of E:=*T redit by the )ellin# Dealer.

i. (*rc4ases fro/ ,an*fact*rer

Figure 20.16 *urc(ases 3rom 4anu3acturer52mporter ii. (*rc4ase fro/ & ent of ,an*fact*rer

Figure 20.17 *urc(ase 3rom Agent o3 4anu3acturer

iii. (*rc4ase fro/ -/porter

Figure 20.18 *urc(ase 3rom 2mporter iv. (*rc4ases fro/ First Sta e Dealer

Figure 20.19 *urc(ases 3rom First $tage #ealer

v. (*rc4ases fro/ t4e Second Sta e Dealer

Figure 20.20 *urc(ases 3rom t(e $econ% $tage #ealer 20.>.1 #reatin (*rc4ases $n the %pril &', (''), Monnet Ispat & Energy Ltd. purchased the #ollo*ing goods #ro! M+s. ,harga-an Steels .Manu#acturer/ -ide ,. o. ,S+&'&.
-te/ Description $ot Rolled oils. It$ 9,ts: + 8 Excise D*t$ J 1@H 64,888 Ed*cation #ess J 7 + !a te 8 Sec. Ed*c. #ess J 6 4 %&' J 8H 9,6(,.+8 -nvoice &/o*nt 4,+4,41,.+ 8 &ssessable %al*e 4,88,888

Step 1: #reate (*rc4ase -nvoice %o to Gate0a$ of 'all$ 1 &cco*ntin %o*c4ers 1 F): (*rc4ase 1 select Excise (*rc4ase from the List of '$pes. Set*p:

&n the F12: #onfi *ration set =se #o//on Led er &<c for -te/ &llocation to "o as shown below3

Figure 20.21 F126 Con3iguration

(. Press F2 and chan#e the date to 107870). 4. )elect B4ar avan Steels in (art$Bs &<c "a/e. 6. Press Enter to 'iew the S*ppliers details screen. +. )pecify the manufacturer of the #oods in the !anufacturer @ &mporter details section, if the sup9 plier of the #oods, is not the manufacturer. The completed s*ppliers detail screen is displayed as shown below3

Figure 20.22 $upplier7s #etails screen

-. Press Enter to accept the screen. 7. Press Enter to accept the nature of purchase. The "at*re of p*rc4ase field is by default set to ,an*fact*rer based on the predefinition in the led#er master. Eou can modify the same dependin# upon the status of the dealer. 1. )elect Eot !olled #oils in the :ame of the &tem field. ,. Type the I*antit$ as 800. 9. )pecify the &/o*nt as 2+2)@0 and press Enter. (8.The Stoc6 -te/ Excise details screen is displayed. )pecify 1 in the R% 46 Entry :o. field

*ccept the )upplier &n'oice :o. as BS<101 and )upplier &n'oice Date as (898+989 /The )upplier &n'oice :o. A )upplier &n'oice Date is defaulted from 'oucher screen0 )pecify 12 in the P"*@R% 46 Entry :o. field /The P"* R% 46 )l. :o. represents the display of this particular transaction in the rele'ant pa#e of R% 46 D Re#ister0 Type the *ssessable =alue as !s. 23003000 /*ssessable =alue >Basic =alue of %oods? J Kty x Rate i.e, +88!T ; Rs. -880 and press Enter

The completed Excise Details subscreen is displayed as shown.

Figure 20.23

!cise #etails 3or6 8ot "olle% coils

The Excise D*t$3 Ed*cation #ess and Secondar$ Ed*cation #ess amounts are auto9 matically calculated on the basis of the confi#uration in the stoc. item master.

(owe%er, in some cases though the e'cise duty is chargeable at a specified rate, the net burden on the buyer may be less than such percentage. In such cases Tally."#! $ pro%ides the fle'ibility to modify the amount of ta'.

Press 5 or Enter to accept the screen.

((.&n the &cco*ntin Details screen, )elect (*rc4ases ; Excisable Goods in the particulars column, the %&'< 'ax class is by default set to (*rc4ases J 8H.

Figure 20.24 Accounting #etails screen

Press Enter to accept the &/o*nt. Press Enter a#ain.

(4.)elect -np*t %&' J 8H led#er and press Enter to automatically display the %&' &/o*nt i.e. !s. )+1G.80 (6.)et S4o0 Stat*tor$ Details to 5es to 'iew Stat*tor$ Details of the transaction The Stat*tor$ Details screen is displayed as shown3

Figure 20.25 $tatutory #etails $creen

(+.&n the Bill70ise Details screen, specify the '$pe of !ef as "e0 !ef and type BS<101 in the "a/e field. (-. Press Enter to accept the screen. (7.Type the details of the transaction in the "arration field. The completed Excise 9(*rc4ase -nvoice is displayed as shown below3

Figure 20.26

!cise. *urc(ase 2n-oice

(1. Press 5 or Enter to accept the Excise 9 Purchase &n'oice.

20.>.2 Excise -nvoicin

Tally.ERP 9 allows you to #enerate and print #envat -nvoices in the prescribed format besides a :on9 en'atable &n'oice. The followin# mandatory stipulations on the preparation of en'at &n'oices are met by Tally.ERP 93 (. :ame, *ddress and entral Excise Re#istration number of the re#istered location issuin# the in'oice, name of the 2urisdictional ran#e @ Di'ision @ ommissionerate and the companyLs &ncome Tax :umber and )ales Tax Re#istration :umber is pre9printed on the &n'oice. 4. The mandatory four copies are prepared and each copy is mar.ed as follows3 a. Ori#inal copy mar.ed as Ori#inal for a Buyer. b. Duplicate mar.ed as Duplicate for Transporter /to be used for a'ailin# en'at credit0. c. Triplicate mar.ed as Triplicate for entral Excise. d. Kuadruplicate mar.ed as Kuadruplicate for a Re#istered person. 6. The copies of the in'oices issued by a first sta#e dealer and a second sta#e dealer are mar.ed as 5irst )ta#e Dealer and )econd )ta#e Dealer respecti'ely.

+. The dealer is reCuired to issue only one in'oice per consi#nment ,if all the pac.a#es in the con9 si#nment are despatched in one lot. $owe'er, in cases where the consi#nment is despatched in batches either on the same day or different days or loaded on more than one 'ehicle, a sep9 arate in'oice is made for each lot or consi#nment. -. Each en'at &n'oice issued by the location bears a printed serial number, be#innin# from the (st of *pril of the year. The startin# serial number as well as formats for recordin# the excise can be easily intimated to the commissioner, whose 2urisdiction the company falls. *n ac.nowl9 ed#ement of such an intimation can be obtained. 7. Records and &n'oice #enerated throu#h computer are also reco#nised. The serial number li.ely to be used in the forthcomin# Cuarter should be intimated to the *ssistant ommisioner. * re'ised intimation is sent when the serial numbers are exhausted.

20.>.+ #reatin Sales -nvoice

Record the #ollo*ing sales transaction !ade 0y Monnet Ispat & Energy Ltd. on the %pril &1, (''), to 2ay3anth Engineering, ,angalore. -te/ Description $ot Rolled oils Set*p:

I*antit $ !T 488

!ate 788

%& ' +I

reate a led#er < O*tp*t %&' J 8H.

Step 1: #reate Excise 7 Sales %o to Gate0a$ of 'all$ 1 &cco*ntin %o*c4ers 1 FG: Sales 1 select Excise 7 Sales from the List of '$pes. (. Press F2 and chan#e the date to 1>7870) 4. &n !ef field, enter the reference number of the transaction 6. The Excise Dnit field displays ,onnet -spat . Ener $ Ltd. as selected durin# 'oucher type creation. +. )elect Fa$6ant4 En ineerin in (art$Bs &<c "a/e and press Enter. -. )pecify the details of the despatch, if any in the Despatc4 Details screen displayed. 7. The Date and 'i/e of the consi#nment is displayed in the Excise Details column alon# with the buyer Excise details.

The completed Despatc4 Details Screen appears as shown below3

Figure 20.27 #espatc( #etails

Press Enter to accept the screen.

1. )elect Eot !olled #oils in the :ame of the &tem field and press Enter. ,. The S*pplier Details screen is displayed. )elect the rele'ant &n'oice :umber BS<101 from the List of (*rc4ases.

Figure 20.28 $upplier #etails

)pecify the I*antit$ as 200.

Figure 20.29 $upplier #etails

)elect End of List and press Enter to accept the screen.

9. )pecify the !ate as @00 and Press Enter. (8.Press Enter twice. ((.&n the &cco*ntin Details screen3 )elect Sales ; Excisable Goods in the (artic*lars column.

The %&'< 'ax class defaults to Sales J 8H.

Figure 20.30 Accounting #etails

Press Enter to accept the amount. Press Enter a#ain to return to the main )ales in'oice creation screen.

(4. )elect O*tp*t %&' J 8H led#er and press Enter. (6. The %&' amount is pre9filled automatically. (+.To 'iew the )tatutory Details set the option S4o0 Stat*tor$ Details to 5es. (-. &n the Bill70ise Details screen, press Enter to accept the default bill allocations. (7. Press Enter to accept the screen. (1. Type the details of the transaction in the "arration field. The completed Sales -nvoice is displayed as shown below3

Figure 20.31

!cise ) $ales

(,. Press Enter to accept the =oucher and print the )ales &n'oice.

The default sales %oucher type can be used for in%oicing none'cisable goods.

(rintin of Sales -nvoice Step 1: (. Press ( =p .ey to 'iew the abo'e sales in'oice and press &lt2( /To print0.

Figure 20.32 &ouc(er *rinting 4. Press F12: #onfi *re 9-nvoice (rintin #onfi *ration: and )et the followin# to 5es. (rint Date and 'i/e (rint 'rader S*pplier -nfo (rint (*rc4ase Excise D*t$ details (rint (*rc4ase &ssessable %al*e

The completed (rintin #onfi *ration screen is displayed as shown below3

Figure 20.33 2n-oice *rinting Con3iguration

6. Press #trl2& to accept the )creen. +. Press Enter from the %o*c4er (rintin screen to print Sales -nvoice under Rule (( of the entral Excise Rules, 4884 -. Press &lt2K or clic. on Koo/ b*tton to 'iew an enlar#ed 'ersion of the report. The print pre'iew of First Sta e DealerLs Sales -nvoice of Excisable Goods to a second sta#e dealer is displayed as shown below3

Figure 20.34 !cise ) 2n-oice This &n'oice displays the Excise details of the buyer, seller and manufacturer in accordance with the Excise rules. &t re'eals the &tem history, includin# the details of the purchases with their

respecti'e tariff and duties. This ser'es as an e'idence for the passin# of E:=*T redit to the subseCuent dealer@ manufacturer. &t also specifies the manufacturerLs name, address and Excise details besides recordin# the date and time of the remo'al of #oods from the dealerLs premises. The &n'oice is mar.ed as the 5irst )ta#e Dealer, depictin# the position of the sellin# dealer and has to be authenticated by the authorised si#natory in the rele'ant space pro'ided in the document. 20.@ Excise !eports Dealers re#istered with the entral Excise are reCuired to maintain a prescribed re#ister with the proper entries of the consi#nments recei'ed or issued by them. * dealer re#istered under Excise Rules are reCuired to submit to the Ran#e )uperintendent a Cuarterly return and other documents for 'erification namely, the Stoc6 !e ister /earlier referred as R% 46D0 and For/ --. &n Tally.ERP 9, you can #enerate and print all statutory and excise related forms and report reCuired by a dealer of excisable #oods. 20.@.1 Excise Stoc6 !e ister The re#istered dealer issuin# in'oices for cen'atable #oods should maintain a stoc. account as prescribed in the form R% 9 46D. The details of the consi#nments recei'ed under the co'er of in'oice issued in terms of the pro'isions of entral Excise Rules, 4884 should also be recorded. $owe'er, consi#nments without a en'atable &n'oice need not be entered. &n respect of any consi#nment, part of which is sold under enta'able in'oice and the other part under the co'er of non9cen'atable in'oice, then the details of sales under non9 cen'atable in'oices ha'e also to be entered in the prescribed stoc. re#ister by ma.in# a consolidated entry at the end of the day indicatin# such Cuantity and in'oice numbers. %o to Gate0a$ of 'all$ 1 Displa$ 1 Stat*tor$ !eports 1 Excise !eports 1 Dealer 1 Excise Stoc6 !e ister )elect Eot !olled #oils and press Enter to display the stoc. re#ister. To print the Stoc6 !e ister press &lt2(

The printed Stoc6 !e ister is displayed as shown below3

Figure 20.35 *rint *re-ie9 o3 $toc1 "egister

In case of Sales Returns, the issued &uantity will be reduced by the returned &uantity and the recei%ed &uantity will be reduced in the case of purchase returns.

20.@.2 Excise (*rc4ase Bill !e ister Excise Purchase Bill Re#ister is a Purchase bill wise report displayin# the details of purchases /Receipts0 and sales /&ssues0 of excisable #oods in a #i'en period. &t precisely shows Receipts and &ssues of Excisable #oods alon#with the information on the duty amount passed, duty amount not passed and the balance of duty includin# ess amount a'ailable durin# the specified period. %o to Gate0a$ of 'all$ M Displa$ M Stat*tor$ !eports M Excise !eports M Dealer M Excise (*rc4ase Bill !e ister &n Selected Excise =nit screen By default, ,onnet -spat . Ener $ Ltd appears in "a/e of Excise =nit field )elect Eot !olled #oils from the List of Excise Stoc6 -te/s and

press Enter

Figure 20.36 $elect !cise :nit The Excise (*rc4ase Bill !e ister of !onnet &spat A Ener#y "td., is as shown.

Figure 20.37 !cise *urc(ase ,ill "egister . *age 1

)croll to the ri#ht usin# Ri#ht ;arrow button

Figure 20.38

!cise *urc(ase ,ill "egister . *age 2

20.A Sales and (*rc4ase Extract Excise )ales and Purchase Extract report displays the details of purchase and sales transactions of all excisable #oods /Excise &n'oice as well as ommercial &n'oice0. %o to Gate0a$ of 'all$ 1 Displa$ 1 Stat*tor$ !eports 1 Excise !eports 1 Dealer 1 Sales and (*rc4ase Extract

&n the Sales and (*rc4ase Extract printin# screen,

Press Bac6space and in Excise Dnit field select ,onnet -spat . Ener $ Ltd. from the "ist of Trader Excise Dnit

)pecify the Fro/ date as 1787200) and 'o date as +0787200) )pecify (lace and Date

Figure 20.39 $ales an% *urc(ase !tract *rinting Con3iguration Press Enter to (rint

The printed Sales and (*rc4ase Extract of !onnet &spat A Ener#y "td. is as shown.

Figure 20.40 $ales an% *urc(ase !tract <*age 1=

Figure 20.41 $ales an% *urc(ase !tract <*age 2= 20.A.1 For/ !G 2+D For/ !G 2+D is the commodity wise )toc. Re#ister displayin# the details of Receipts and sales &ssues of excisable #oods in a #i'en period. &t precisely shows Receipts and &ssues of Excisable #oods alon#with the information on the duty amount passed, duty amount not passed and the balance of duty includin# ess amount a'ailable durin# the specified period. %o to Gate0a$ of 'all$ 1 Displa$ 1 Stat*tor$ !eports 1 Excise !eports 1 Dealer 1 For/ !G 2+D 1 )elect &ll -te/s to 'iew 5orm R% 46D for all &tems &n Selected Excise =nit screen By default, ,onnet -spat . Ener $ Ltd appears in "a/e of Excise =nit field

The 5orm !G 2+D !e ister is displayed as shown

Figure 20.42 "0 23# "egister

20.A.2 I*arterl$ !et*rn 7 For/ -* first sta#e dealer or a second sta#e dealer is reCuired to submit a return. This has to be done in the form specified within fifteen days from the close of each Cuarter, to the )uperintendent of entral Excise. To print I*arterl$ !et*rn 7 For/ --, %o to Gate0a$ of 'all$ 1 Displa$ 1 Stat*tor$ !eports 1 Excise !eports 1 Dealer 1 select For/ 7 2 and press Enter.

Figure 20.43 *rint Con3iguration

&n the For/ 7 2 printin# screen,

Press and in Excise Dnit field select ,onnet -spat . Ener $ Ltd. from the "istBac6space of Trader Excise

Dnit )pecify the period of the report from 1787200) to +07@7200). Type the (lace and Date of report. Press Enter to print For/ 2. Press &lt2K or clic. on Koo/ b*tton to 'iew an enlar#ed 'ersion of the shown below3

report. The printed For/ 2 for the Cuarter endin# 68th Nune 4889 is displayed as

Figure 20.44 *rint *re-ie9 o3

Form.2 *age.1

Figure 20.45 *rint *re-ie9 o3 Form.2 *age.2

20.A.+ &cco*ntin for !et*rns of Goods &n the normal course of business, customers may return #oods sold to them due to defecti'e Cuality, price differences etc. Debit and redit :otes are used to ad2ust entries for transactions in'ol'in# the return of excisable #oods. Sales !et*rns $n (1454'), 2ay3anth Engineering returned Hot Rolled Coils, the details o# *hich are as gi-en 0elo*6
-te/ Description $ot Rolled oils. Set*p :

I*antit $ - !T

!ate 7 8

%&' + I

&n the F11: Feat*res 9&cco*ntin Feat*res:,

)et =se Debit<#redit "otes to 5es )et =se -nvoice /ode for #redit "otes to 5es )et =se -nvoice /ode for Debit "otes to 5es

Figure 20.46 F116 Company Features

Press #trl2& to accept the screen. reate Excise Sales !et*rns %o*c4er '$pe

reate redit :ote =oucher Type for Excise as discussed in our earlier lessons.

Ensure that the completed Excise 7 Sales !et*rns =oucher Type appears as shown below3

Figure 20.47 &ouc(er 'ype Creation !cise > $ales "eturns

Step 1: #reate #redit "ote %o to Gate0a$ of 'all$ 1 &cco*ntin %o*c4ers 1 #trl2FG: #redit "ote 1 select Excise 7 Sales !et*rns from the List of '$pes. (. Press F2 and chan#e the date to 2>7870). 4. )elect Goods Sold !et*rned as the type of %&' &dj*st/ent in the =sed for field and press Enter. 6. )elect Fa$6ant4 En ineerin in the (art$Ls &<c "a/e. +. Press Enter to 'iew the !eceipt Details screen and accept the default details. -. )elect Eot !olled #oils in the "a/e of t4e -te/ field and press Enter. 7. The S*pplier Details screen is displayed. )pecify the Sales -nvoice "*/ber as 1 and the date of the in'oice appears.

Figure 20.48 $upplier #etails

)elect B)@(8( as the S*pplier -nvoice "o. from the List of (*rc4ases. Type the returned I*antit$ as > in the I*antit$ !et*rn column.

Figure 20.49 $upplier #etails

)elect End of List to accept the screen.

1. Press Enter to accept the !ate and the &/o*nt in the main screen. ,. &n the &cco*ntin Details screen, select Sales 7 Excisable Goods in the (artic*lars col9 umn. 9. The %&'< 'ax #lass is by default set at Sales J 8H.

In the case of De0it otes+ Credit otes, the accounting and ) T ledgers used earlier to account for purchases / sales entries, should be used in a re%erse order. This will re%erse the effect of the sales/ purchase transaction. (8.)elect O*tp*t %&' J 8H led#er. ((.The %&' &/o*nt is displayed automatically. (4.To 'iew the statutory details of the transaction set S4o0 Stat*tor$ Details to 5es (6. &n the Bill70ise Details screen, select & st !ef as teh type of reference and 1 as the Bill "o. (+.Type the details of the transaction in the "arration field.

The completed Sales !et*rns entry appears as shown below3

Figure 20.50 Accounting &ouc(er ) !cise.$ales "eturns (-. Press 5 or Enter to accept the screen. Step 2 : Displa$ Excise Stoc6 !e ister &n the Excise )toc. Re#ister, the issued Cuantity will be reduced by the Cuantity returned. &n the case of purchase returns, create a Debit %o*c4er '$pe with =se for Dealer Excise set to 5es and pass an entry as explained abo'e. %o to Gate0a$ of 'all$ 1 Displa$ 1 Stat*tor$ !eports 1 Excise !eports 1 Dealer1 Excise Stoc6 !e ister )elect Eot !olled coils and press Enter.

The Excise Stoc6 !e ister after the )ales Returns will appear as shown below3

Figure 20.51 !cise $toc1 "egister

(ractice Exercise (. Fa$ant4 -nd*stries (vt Ltd., dealin# in cold rolled coils, has a ban. account in )B& with an openin# balance of Rs. ,88888. %i'en below are the transactions for the month of !ay 4889. P't "td. and pass the followin# transactions3 reate Nayanth &ndustries

In the 7&&6 7eatures .Statutory & Taxation 7eatures/, "nable Excise #or
Dealers and 8%T to 9es.

reate the followin# %o*c4er t$pes and select@enter the fields as #i'en in the table3
'$pe of %o*c4er Purchase )ales redit :ote &bbr. Ex 9 Purc Ex9 sal Ex9 @:ote ,et4od of vo*c4er "*/berin *utomatic *utomatic *utomatic =se for Dealer E es E es E e

"a/e of %o*c4er '$pes Excise 9 Purchases Excise 9 )ales Excise9)ales Returns

reate the followin# Led ers in the masters and select@ enter the fields as #i'en in the table3 "a/e of t4e Led er =nd er )undry reditors )undry Debtors ,aintain balances bill7b$7bill E e E e Excise Details E e E e

=ish'eshwara )teel &ndustries *sho. En#ineers

In Excise Details Screen * "nter Excise Regn. o., Range, Di-i4 sion, Co!!issionerate and Select as Manu#acturer for De#ault ature o# :urchase. In the Excise Details Screen * "nter Excise Regn. o., Range, Di-ision, Co!!issionerate and Select the Second Stage Dealer for

De#ault ature o# :urchase.

reate the followin# Led ers in the masters and select@ enter the fields as #i'en in the table3 "a/e of t4e led er =nder -nventor $ %al*es are affected E =sed in %&' !et*r ns E %&'<' ax #la ss Purchases H +I )ales H +I

Purchases 9 Excisable %oods

e e s s )ales 9 Excisable %oods )ales E E *ccounts e e s s reate the followin# Led ers for =*T and enter the fields as #i'en in the table below3 "a/e Of t4e led er =nder '$pe of D*t$<'ax = *T = *T %&'<'ax #lass &nput =*T H + =*T Output H + -nventor $ val*es are affected : o : o

Purchase *ccounts

&nput =*T H +I Output =*T H +I

Duties A Taxes Duties A Taxes

reate the followin# =nits of ,eas*re and enter the fields as #i'en in the table below3 '$pe S$/bol !T For/al "a/e !etric Tonnes "*/ber of Deci/al 8

)imple

reate the followin# Stoc6 -te/s and enter the fields as #i'en in the table below3 "a/e =nder Primary =nits ! T Excise Details E e

old Rolled oils

In Duty Details #or6 Hot Rolled Coils

Tariff +lassification, -..-/000 Type of Duty, 1asic "'cise Duty #ate of Duty, 2/3 Method of +alculation, 4n ssessable )alue Type of Duty, "ducation +ess #ate of Duty, 53 Method of +alculation, 4n Duty %alue Type of Duty, Secondary "ducation +ess #ate of Duty, 23 Method of +alculation, 4n Duty %alue

Given belo0 are t4e transactions : (. On (49-94889, Nayanth &ndustries purchased the followin# items from =ish'eshwara )teel &ndustries /!anufacturer0 /&n'oice :o. (88-70.
-te/ Description Kuantity /!T0 Rate *ssessable =alue Excise Duty H (-I Education ess H 4I Total *mount =*T H +I &n'oice *mount Eot !olled #oils 488 788 (,48,88 8 (9,48 86,+ (,69,-, + -,-,6.6 7 (,+-,(71.6 7

4. On 489-94889, Nayanth &ndustries sold the followin# items to *sho. En#ineers. -te/ Description Kuantity /!T0 Rate Eot !olled #oils ( , 8

=*T

+ I

6. On 449-94889, *sho. En#ineers returned the followin# items to Nayanth &ndustries -te/ Description Kuantity /!T0 Rate =*T Eot !olled #oils ( 8 , 8 + I

(oints to !e/e/ber

Excise duty is tax char#ed on #oods manufactured and consumed within &ndia. %oods to be Excisable must satisfy the three basic conditions i.e, it must be mo'able, mar.etable and specified in the entral Excise Tariff *ct. E:=*T redit is the set9off of duty paid on inputs used in the manufac9 ture of final products, a#ainst the duty liability on such final products. Only the re#istered dealers are eli#ible to pass on or a'ail as the case may be the E:=*T redit. Tally.ERP 9 permits you to create specific 'oucher types li.e Excise9 Purchase A Excise9)ales for enterin# the excise related transactions. )upplier@ Buyer details can be entered durin# in'oice entry. Tally.ERP 9 permits you to #enerate A print both en'atable A :on9 en'atable )ales &n'oice. * Re#istered Dealer is reCuired to maintain )tatutory Reports li.e )toc. Re#ister of the cen'atable #oods A Kuarterly Return of the Excise Duty paid. Tally.ERP 9 permits you to #enerate and print these )tatutory Reports. Tally.ERP 9 also allows you to ma.e ad2ustments in the records for the sales return of en'atable #oods and 'iew its effect in the )tatutory Reports.