Under Central Excise Act Excise duty is payable monthly or quarterly depending on the Type of manufacturer. If you’re a Regular Manufacturer, Excise Duty is payable Monthly and if you are SSI Excise Duty is payable Monthly. Hence the CENVAT Credit Adjustment entry is recorded at the end of Every month or Quarter depending on the type of Manufacturer.
For the payment of Excise Duty, CENVAT Credit available to a Unit will be adjusted towards the Duty Payable to arrive at the Net Duty Payable to the Government.
In Tally.ERP 9 to record the adjustment entry is recorded in Journal Voucher with a CENVAT Adjustment Voucher Class by Crediting - CENVAT Ledgers and Debiting - Excise DutyLedgers to nullify their balances and the net balance in the Excise Duty ledgers will be paid to the Government.
Note: This Voucher Type can also be used to adjust the Advance Excise duty paid to the Government towards Excise Duty payable for the current month.
To create CENVAT Adjustment Class in Journal Voucher press F7 Key or select F7: Adjustment of CENVAT Credit / Advanced Adjustment and press enter to view CENVAT Credit /Advanced Adjustment Voucher Type Setup screen.
In CENVAT Credit /Advanced Adjustment Voucher Type Setup screen, Application displays default Journal Voucher
Select Journal Voucher Type. Retain the default settings in Name of Voucher Type, Method of Voucher Numbering
In Name of Class field mention the class name as - CENVAT Credit Adjustment
Press Enter to view Voucher Type Class screen
In Voucher Type Class screen
Set the option Use Class for Excise /CENVAT Adjustments to Yes
Press Enter to save Voucher Type Class screen.
Press enter to save.
Note: You can also create voucher class for Journal from Gateway of Tally > Accounts Info. > Voucher Types > Alter > Journal Voucher