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Removal as Such [Excise for Manufacturer] in Tally.ERP 9

Removal of Inputs/Capital Goods without having put the same into use (production) is referred to as Removal as Such.

Sometimes, Inputs/Capital Goods purchased by the manufacturer for the manufacture of Final Product can be sold/disposed if,

  • The input/capital goods are not required by the manufacturer

  • The prospective is willing to pay more

  • Excess Supply

  • Change in Production plan

Inputs or Capital Goods can be removed from factory of manufacturer on payment of Duty at the rate applicable on such goods on the date of removal.

Tally.ERP 9 allows to record the Removal as Such transactions and captures the details of credit adjusted against the duty paid on removal of goods in appropriate reports and Form ER- 1.

Example: on 15-8-2008 ABC Company removed (as such) following inputs by paying Excise Duty @ 16% along with Education Cess @ 2% and Secondary Education Cess @ 1% to sell to Lanco Manufacturers

 

* Pet Bottles - 2Ltr  25000 nos @ Rs.4 per bottle

* Water Container - 20Ltr 3000 nos @ Rs. 9 per container

1. Record the Transaction in Excise - Sales voucher

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

  1. In Voucher Type sub form select Excise – Sales as the voucher type.

  2. Ensure that the Sales Voucher is in Item Invoice Mode.

Note: In Tally.ERP 9 Excise Sales Transactions needs to recorded in Invoice Mode Only.

  1. Enter the Date as 15-8-2008.

  2. Enter the Ref details as ABC/941.

  3. In Excise Unit field Tally.ERP 9 displays ABC Company, as selected during voucher type creation.

  4. Excise Book Name field displays the name of the excise invoice book (ABC/Rule11/Book1/08-09) created for the Excise Unit.

  5. Serial No. field displays the Rule 11 invoice Number e.g. ABC/1012/08-09.

  6. In Party A/c Name field select Lanco Manufacturers from the List of Ledger Accounts.

  7. In Party Details sub form.

  8. Despatch/Order Details: Under these two sections enter the Despatch and Order Details.

  9. Sl.No. in PLA /RG-23: In this field enter the Sl.No. in PLA /RG-23 register as 1.

  10. Date & Time of Invoice: In this field enter the time Date of Invoice. Tally.ERP 9 by default displays the system time and date in this field which can be changed.

  11. Date & Time of Removal: In this field enter the Time & Date of Removal of Goods. Tally.ERP 9 by default displays the system time and date in this field which can be changed.

Note: As per Central Excise Invoice System, in all the sales invoices, the time and date of removal has to be printed.

  • Buyer Details: In this section Tally.ERP 9 by default displays the details provided during buyer ledger creation, which can be changed.


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  1. In Nature of Removal field select the option Removal As Such from the list of Types of Removals.


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Note: It is must to define the nature of removal in Rule 11 Invoice.

 

* Removal as Such is selected when the inputs/capital goods are removed as such.

  1.  In Sales Ledger field select the ledger Sales @ 12.5% from the List of Ledger Accounts.

  2. VAT/Tax Class field automatically gets updated with the VAT/Tax class as selected in the sales ledger, which can be changed.

  3. In Name of Item field select the Stock Item i.e. Pet Bottles - 2Ltr.

  4. In Quantity field enter the quantity as 25,000.

  5. In Rate field enter the rate as Rs. 4.

  6. Amount will be displayed automatically.

  7. Similarly, select Water Container - 20 Ltrs, specify Quantity as 3000 and Rate of Rs. 9

  8. Select Duty Ledger i.e. Basic Excise Duty @ 16% and  press enter to view Excise Duty Allocation screen

  9. In Excise Duty Allocation screen

  10. In Type of Ref field New Ref is defaulted

  11. In Name field the combination Excise Book Name and Serial Number details will be captured and displayed automatically. Tally.ERP9 does not allow you to alter the Name details.

  12. Name Item: This field displays all the stock items which are selected in the sales voucher type

  13. Assessable Amount: This displays the item wise Assessable Value on which the duty is calculated

  14. Rate: Rate of duty defined in the duty ledger will be defaulted. If the duty paid is at higher or lower rate than the rate defined in the ledger, same can be altered in Rate field.

  15. Duty Amount: Duty Amount will be calculated on the Assessable Value at the rate specified.


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  1. Duty calculated in the Excise Duty Allocation screen will be displayed automatically in Amount field.

  2. Select Education Cess @ 2% and press enter to view the Excise Duty Allocation screen.


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Note: Basic Excise Duty amount will be displayed in Assessable Value field

  1. Similarly, select Secondary Education Cess @ 1% and accept the default details displayed in Excise Duty Allocation screen.

  2. Select Output VAT @ 4% as the Vat duty ledger. Amount will be displayed automatically.

  3. Set the option Show Statutory Details to Yes to view Statutory Details screen.


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  1. In the Statutory Details screen press Alt + F1: Detailed to view details of duty calculation. The Statutory Details screen is displayed as shown.

  2. In Bill-wise Details screen

  3. In Type of Ref select New Ref

  4. In Name field specify ABC/941

  5. Amount will be defaulted automatically.

Completed Removal as Such entry is displayed as shown


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  1. Press enter to accept and save.

 

2. Print Rule 11 invoice

The Rule 11 invoice of Removal as such transaction appears as shown


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3. Excise Computation

The details of Removal As Such will be displayed in computation report under Excise Duty Payable section with a separate line item as Removal As Such with Assessable Value and Duty Amount.  


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4. CENVAT Credit Adjustment towards Duty Liability on goods Removed As Such

The duty liability of a unit can be adjusted towards the excess credit.

Example: on 31-8-2008, before payment of duty to the Government ABC Company adjusted the Duty liability of goods Removed As Such towards CENVAT Credit.

 

Total Duty Amount is 20567.04

 

Basic Excise Duty  

* Pet Bottles - 2Ltr  Rs.16,000

* Water Container - 20Ltr Rs. 4,320

Education Cess

* Pet Bottles - 2Ltr  Rs. 320

* Water Container - 20Ltr Rs. 86.40

Secondary Education Cess

* Pet Bottles - 2Ltr  Rs.160

* Water Container - 20Ltr Rs. 43.20

Record the transaction in Journal Voucher with CENVAT Adjustment Voucher Class

In Tally.ERP 9 all the CENVAT Adjustment entries are recorded in Journal voucher. Manually adjust the credit towards Tax liability of Removal as Such.

Note: Currently Tally.ERP 9 allows the adjustment of credit and liability of same nature of duty example: BED credit can be adjusted towards BED.

 

* CENVAT Adjustment between the duties i.e. BED Credit adjustment towards NCCD etc.  

* Adjustment of service input credit towards excise duty and vice versa

* Adjustment of CENVAT Credit towards Tax liability of Removal As Such are not supported.

Go to Gateway of Tally > Accounting Vouchers > F7: Journal

  1. In Change Voucher Type screen, select CENVAT Credit Adjustment in Class field

  2. Enter the Date as 31-8-2008.

  3. In Used for field select CENVAT Adjustment

  4. In Excise Unit field select ABC Company

  5. In Debit field select Basic Excise Duty - 16% ledger to adjust the duty liability of goods removed as such

  6. In Excise Duty Allocation screen

  7. In Type of Ref field select Agst Ref

  8.  In Name field select the reference ABC/Rule11/Book1/08-09ABC/1012/08-09 identified as As Such

Note: As per rule the CENVAT Credit adjusted against the goods removed as such needs to captured in appropriate column inForm ER - 1, RG 23 Part - I and Abstract report.

 

To distinguish the tax bills of removal as such against the other removals and to capture the credit adjusted against the tax liability, tax bills of goods removed as such are identified with the tag As Such.

  • Amount of the bill Rs. 16,000 will be defaulted

  • In Type of Ref field select Agst Ref.

  • In Name field select the reference ABC/Rule11/Book1/08-09ABC/1012/08-09 identified as Removal as such.

  • In Amount of the bill Rs. 4320 will be defaulted


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  1. In Debit field select Education Cess @ 2% ledger to adjust the duty liability of goods removed as such

  2. In Excise Duty Allocation screen adjust the bills as shown


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  1. In Debit field select Secondary Education Cess @ 1% ledger to adjust the duty liability of goods removed as such

  2. In Excise Duty Allocation screen adjust the bills as shown


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  1. In Credit field Basic Excise Duty (CENVAT) ledger to adjust CENVAT Credit towards duty liability

  2. In Excise Duty Allocation Screen

  3. In Type of Ref field select Agst Ref

  4.  In Name field select the reference 4587/1 dated 1-8-2008

  5. In Amount field enter the amount which needs to be adjusted towards the liability. The basic Excise Duty lability on goods removed as such is Rs. 20320. Enter Rs. 20320 in amount field.


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  1. In Credit field Education Cess (CENVAT) ledger to adjust CENVAT Credit towards duty liability

  2. In Excise Duty Allocation Screen

  3. In Type of Ref field select Agst Ref

  4.  In Name field select the reference 4587/1 dated 1-8-2008

  5. In Amount field enter the amount which needs to be adjusted towards the liability. The education cess liability on goods removed as such is Rs. 406.40. Enter Rs. 406.40 in amount field.

  1. In Credit field Secondary Education Cess (CENVAT) ledger to adjust CENVAT Credit towards duty liability

  2. In Excise Duty Allocation Screen

  3. In Type of Ref field select Agst Ref

  4.  In Name field select the reference 4587/1 dated 1-8-2008

  5. In Amount field enter the amount which needs to be adjusted towards the liability. The secondary education cess  liability on removal as such is Rs. 203.20. Enter Rs. 203.20 in amount field.

  1. Set the option Provide details to Yes to enter the Adjustment Details.


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The completed journal voucher is displayed as shown


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  1. Press enter to accept.

 
 
 
 
Tally.ERP 9 Reference Manual LIBRARY
1.
Installation of Tally.ERP9
2.
Site Licensing of Tally.ERP9
3.
Shortcut Keys in Tally.ERP9
4.
Maintaining Company Data
5.
Creating Masters
5a. Accounts Information [Creating Masters]
5b. Inventory Information [Creating Masters]
6.
Voucher Entry
7.
Reports in Tally.ERP9
8.
Excise for Dealer
9.
Excise for Manufacturer
10.
Reports [ Excise for Manufacturer]
11.
Excise for Importer
12.
Service Tax in Tally.ERP9
13.
Tax Collected at Source (TCS) in Tally.ERP9
14.
Tax Deducted at Source (TDS) in Tally.ERP9
15.
Value Added Tax (VAT) in Tally.ERP9
16.
Central Sales Tax (CST) in Tally.ERP9
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
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