Kindly review the below details of sales invoice and sales return for goods sent. The break up being –
1. Value of Finished Goods (FG) - Rs. 4061 /-
2. Excise duty Output @ 10.84% - Rs. 440 /-
3. Education Cess Output @ 2 % - Rs. 9 /-
4. Excise H & S Output @ 1 % - Rs. 4 /-
Total value of FG - Rs. 4514/-
Now the debit note issued for the sales return does not show excise break -up and has clubbed the excise duty and shown the tot value of goods.
1. But how do v account for the excise duty reversal in tally? We have already defined the excise duty structure product-wise to calculate it automatically and give results as Assessable values.
2. will we get excise duty credit for use in future inspite of fact that the debit note does not show excise duty separately?
3. which register to b maintained for further sale of this rejected goods
23 June 2010
Dear Freind, You 'll definitely get Excise duty credit, provided they are correctly reflected in the books maintained as per excise records.
So far as Tally is concerned it is a Computerised package which is programmed for a generalised package and even not specific for Excise Record purpose.
You can make the entry in Tally as per the Break-up proportionately, provided the debit note specifies the gross amount.
The above step can be followed only if it is impossible to ascertain the duty break-up of the returned goods.
Otherwise if it is possible to ascertain the duty amount involved in the goods returned you can reverse the same.
Duty amount involved in the returned goods can be ascertained from the identity of goods / their batch No. / Time period of purchase / GRN No, etc and cross verify them with the Goods return register / Challan.
Please note that you have to keep the invoice of goods intact and safe for your reversal claim.
I thank you for your valuable and prompt reply. Even I am of the same opinion too, but our excise consultant is very firm that since the debit note issued is for the clubbed figures and does not indicate the excise duty break-up you will not get excise credit.
Kindly opine and support if possible with any clarification / law notes.
24 June 2010
When u receive the Sale returned material, you require to intimate to Excise Dept within 48 hrs, with mentioning the note to taking the cenvat credit in prescribed form as per Rule 16. Then you can avail cenvat credit of as like Input. for the purpose of resale of material, you have to maintain D-3 register.
24 June 2010
Yes, He is true. But the fact is when Duty amount isnot shown separately, it is the primary assumption of the department is the amount involves Duty amount as well.
For your safe side it is better if you can ask the Party to issue you the Debitnote in a revised manner. Otherwise you hav to explain this fact during excise audit. This is a common issue and dont get so confused.
CAclubindia
