09 August 2010
Dear Experts, I have already posted this query but no reply for this, thats why i am again posting this query. Help me...Its very urgent... 1) How i have to calculate Excise Duty liability for a company? 2) What is the entry for recognizing the excise duty ? 3) what is the entry when it is passed on to the buyer? The above queries given with an example: Purchases---> Raw Material A Raw Material B Base Price for A 1000 B 1200 Excise Duty for A80 B 96 VAT for A 43.2 B 51.84 Total for A 1123 B 1348 (rounded off to the nearest rupee) Now after finishing the manufacturing process, the Company makes a Sale As per the Valuation Rules it is Rs.4500.
Sales ---> Finished Goods C Base Price 4500 Excise 450 VAT 198 Total 5148 (rounded off to the nearest rupee)
Payment made to PLA Rs.300 so that he can remove the goods without any problem. Also give entry to the above. Thanks for everyone who replied for this. With regards, Rajesh.