Excise (Dealer) in Tally.ERP 9

Excise for Dealer

The categorization of a dealer as first stage or second stage is not predefined. It is decided during the purchase. Therefore, a dealer may be a first stage dealer or a second stage dealer depending on the type of purchase.

Example 1

Assume you are a First Stage Dealer and you buy the goods from the importer or Manufacturer.

The Invoice issued on sale of goods to the Manufacturer or Second Stage Dealer has to indicate the amount of Excise Duty passed on or proportionate value to the excise of the goods being sold.

Example 2

Let us assume that you are a Second Stage Dealer and you purchase goods from a First Stage Dealer.

Type of Duties and Method of Calculation

The Duties for Excise can be calculated on Assessable value and on Duty Value. According to the Excise laws, find below the list of Excise duties with the method of calculation.

Type of Duty	Duty Type	Method of calculation
Basic Excise Duty (BED)	Excise	On Assessable Value
Special Excise Duty (SED)	Excise	On Assessable Value
AED (GSI)	Excise	On Assessable Value
AED (TTA)	Excise	On BED + SED
AED (TTW)	Excise	On BED + SED
AED (PM&T)	Excise	On BED + SED
NCCD	Excise	On BED + SED + AED (GSI)
Special AED	Excise	On Quantity
AED on High Speed Diesel	Excise	On Quantity
Educational Cess	Excise	On Total Excise Duty
SHE Cess on Excise duty	Excise	On Total Excise Duty
Countervailing Duty(CVD)	CVD	On Assessable Value
SED of CVD	CVD	On Assessable Value
AED (GSI) of CVD	CVD	On Assessable Value
AED (TTA) of CVD	CVD	On CVD + SED of CVD
AED (TTW) of CVD	CVD	On CVD + SED of CVD
AED (PM&T) of CVD	CVD	On CVD + SED of CVD
NCCD of CVD	CVD	On CVD + SED of CVD + AED (GSI) of CVD
Special AED of CVD	CVD	On Quantity
AED on High Speed Diesel of CVD	CVD	On Quantity
Educational Cess on CVD	CVD	On Total CVD
SHE Cess on CVD	CVD	On Total CVD

Filing Excise Returns

Every registered dealer is required to maintain a Daily Stock Register of records of receipts of duty-paid goods and issue thereof, and submit quarterly return in Form - 2

Enabling Excise in Tally.ERP 9

• To Enable Excise in Tally.ERP 9,
  1. Go to Gateway of Tally > F11: Features > Statutory & Taxation
  2. Set the options Enable Dealer - Excise and Set/ Alter Excise Details to Yes
  
  3. The Excise Registration Details sub-form appears as shown.
  
  • Registration Type: Select Dealer from the list of Registration Types.
  • Address, Telephone No., PIN Code: Address, Telephone No. and PIN Code details are captured from the company creation screen. If required, it can be altered.
  • Excise Details: Under this section provide Excise Details of the Dealer. Excise Details will be specific to the Registration Type selected.
  Note: 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.
  Note: Name entered in the Unit Mailing Name will be used in all Excise Reports.
  • Excise Registration (ECC) No.: It is a 15-Digit alphanumeric PAN based registration number mentioned in the Registration Certificate. The first part would be the 10-character (alphanumeric) Permanent Account Number [PAN] issued by the Income Tax Authorities to whom the registration number is allotted (includes a legal person).
  The second part comprises a fixed 2-character alpha-code indicating the category of the  Registrant (XD – For Dealers / XM – For Manufacturers). The third part is a 3-character numeric code. E.g.  AAPLS5647MXD001
  • Date of Registration: Enter the date of Excise registration, e.g. 1-4-1999
  • Importer Exporter Code (IEC): It is a unique 10 digit code issued by DGFT – Director General of Foreign Trade , Ministry of Commerce, Government of India to Indian Companies. To import or export in India, IEC Code is mandatory. No person or entity shall make any Import or Export without IEC Code Number.
  • Excise Book Name (as per Rule 11):  Enter the Excise Book Name. This will help in maintaining the sequence of Excise invoices raised by the dealer.
  • Select the option New Number from the List of Excise Books, to view Serial Number Alteration (Secondary) screen.
  • In the Serial Number Alteration screen, enter the details as shown:
  
  Creating Excise Book will help the Excise Dealer to maintain the sequence of excise Sales invoices raised. Example: If the Excise Dealer raises, 3 Excise Invoices and 4 & 5th are commercial invoice. When the 6th Invoice raised is Excise Invoice the invoice number will be 4 instead of 6.
  Note: Dealers who want the earlier method of invoice numbering can continue without creating the Excise Book.
  • Other Details: Enter Code, Name and Address of Range, Division and Commissionerate under which your company is registered.
  
  Note: In this case ABC Company is not using the Excise Book to maintain the sequence of Excise Invoice Numbers.
  4. Press Enter to accept the Excise Registration Details.
  5. Set the options Enable Value Added Tax (VAT) and  Set/Alter VAT Details to Yes
  6. The Company VAT Details sub-form appears as shown.
  
  6. Under Tax Information enter the VAT TIN No., Inter-state Sales Tax Number and PAN/Income - Tax No. details
  
  7. Press Enter to accept and save.
     
     

     Creating a Sales Ledger

     To create a Sales Ledger,
     Go to Gateway of Tally > Accounts Info. > Ledgers > Create
     1. Enter the Name of the sales ledger you wish to create, for e.g., Sales @ 4%.
     2. Select Sales Accounts as the group name in the Under field.
     3. Set Inventory values are affected to Yes.
     4. In Type of Ledger field select Not Applicable
     Note:The sales on which discounts are allowed can be accounted in the books of accounts in 2 ways
     
     
     1. Account Sales and Discount Separately
     2. Account the Net Sales after deducting discount
     
     
     Some of the Sates in India are following the system of accounting Net sales after discounts. To meet this requirement and to show the Net Group Balance (Sales - Discount) the Type of Ledger option has been provided in ledgers grouped under Sales Accounts.
     
     
     If a sales ledger to be used as a Discount Ledger, in Type of Ledger field select the option Discount.
     
     
     5. Set the option Used In VAT Returns to Yes to display the default VAT/Tax Class sub screen.
     
     6. Select the required VAT/Tax Class, for e.g., Sales @ 4%.
     
     
     
     
     7. Press Enter to Accept and save.
     Similarly you can create Sales @ 12.5% and Sales @ 1%.
     Note: It is recommended to create separate Sales ledgers with appropriate VAT classification for different rates of VAT. However, Tally.ERP9 provides you the flexibility to use a common sales ledger for different rates, by selecting VAT classification as Not Applicable and allows selection of required classification from the list of VAT/Tax Class while recording a transaction.
     
     
     
     

     Creating a Purchase Ledger

     To create a Purchase Ledger,

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

     1. Enter the Name of the purchase ledger you wish to create, for e.g., Purchases @ 4%.
     2. Select Purchase Accounts as the group name in the Under field.
     3. Set Inventory values are affected to Yes.
     4. In Type of Ledger field select Not Applicable

     Note:The purchase on which discounts are allowed can be accounted in the books of accounts in 2 ways

     
     

     1. Account Purchase and Discount Separately  

     2. Account the Net Purchase after deducting discount

     
     

     Some of the Sates in India are following the system of accounting Net Purchases after discounts. To meet this requirement and to show the Net Group Balance (Purchases - Discount) the Type of Ledger option has been provided in ledgers grouped under Purchases Accounts.

     
     

     If a purchase ledger to be used as a Discount Ledger, in Type of Ledger field select the option Discount.

     5. Set the option Used In VAT Returns to Yes to display the default VAT/Tax Class sub screen.

     

     6. Select the required VAT/Tax Class, for e.g., Purchases @ 4%.

     

     
     

     

     7. Press Enter to Accept and save.

     Similarly you can create Purchases @ 12.5% and Purchases @ 1%

     Note: It is recommended to create separate Purchase ledgers with appropriate VAT classification for different rates of VAT. However, Tally.ERP9 provides you the flexibility to use a common Purchase ledger for different rates, by selecting VAT classification as Not Applicable and allows selection of required classification from the list of VAT/Tax Class while recording a transaction.

     
     

     
     

     Creating a Purchase – Imports Ledger

     To create a Purchase - Imports Ledger,

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

     1. Enter the Name of the purchase ledger you wish to create, for e.g., Purchase – Imports.
     2. Select Purchase Accounts as the group name in the Under field.
     3. Set Inventory values are affected to Yes.
     4. Set the option Used In VAT Returns to Yes to display the default VAT/Tax Class sub screen.
     5. Select the required VAT/Tax Class, for e.g., Imports.

     

     
     

     

     6. Press Enter to Accept and save.

     
     

     Creating a Purchase – Imports Ledger

     To create a Purchase - Imports Ledger,

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

     1. Enter the Name of the purchase ledger you wish to create, for e.g., Purchase – Imports.
     2. Select Purchase Accounts as the group name in the Under field.
     3. Set Inventory values are affected to Yes.
     4. Set the option Used In VAT Returns to Yes to display the default VAT/Tax Class sub screen.
     5. Select the required VAT/Tax Class, for e.g., Imports.

     

     
     

     

     6. Press Enter to Accept and save.
        
        

        Creating VAT Ledgers

        Input VAT

        To create a Input VAT Ledger,
        Go to Gateway of Tally > Accounts Info. > Ledgers > Create
        1. Enter the Name of the Input VAT ledger you wish to create, for e.g., Input VAT @ 4%
        2. Select Duties & Taxes as the group name in the Under field.
        3. Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax.
        4. Select the requisite VAT/Tax Class, for e.g., Input VAT @ 4% from the VAT/TAX Class list.
        
        5. Percentage of Calculation and Method of Calculation are updated automatically based on the Type of Duty/Tax and VAT/Tax Class selected.
        6. For Rounding Method select as Not Applicable
        
        6. 6. Press Enter to Accept to save
        Note: It is recommended to create separate Input VAT ledgers with appropriate VAT classification for different rates of VAT. However, Tally.ERP 9 provides you the flexibility to use a common Input VAT ledger for different rates, by selecting VAT classification as Not Applicable and allows selection of required classification from the list of VAT/Tax Class while recording a transaction.
        
        

        Output VAT

        To create a Output VAT Ledger,
        Go to Gateway of Tally > Accounts Info. > Ledgers > Create
        1. Enter the Name of the output VAT ledger you wish to create, for e.g., Output VAT @ 4%
        2. Select Duties & Taxes as the group name in the under field.
        3. Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax.
        4. Select the requisite VAT/Tax Class, for e.g., Output VAT @ 4% from the VAT/TAX Class list.
        
        5. Percentage of Calculation and Method of Calculation are updated automatically based on the Type of Duty/Tax and VAT/Tax Class selected.
        
        6. Press Enter to Accept to save
        Note: It is recommended to create separate Output VAT ledgers with appropriate VAT classification for different rates of VAT. However, Tally.ERP 9 provides you the flexibility to use a common Output VAT ledger for different rates, by selecting VAT classification as Not Applicable and allows selection of required classification from the list of VAT/Tax Class while recording a transaction.