Regarding EPR Obligation Charges
This query is : Resolved
13 January 2025
Respected Sir/Mam,
i am a purchaser of preform and i want to know that under which head in tally prime does "EPR OBLIGATION CHARGES" LEDGER COMES?. This charges are added in the bill which i have received from the party..
thnks rgds
vinod
8490095003
i am a purchaser of preform and i want to know that under which head in tally prime does "EPR OBLIGATION CHARGES" LEDGER COMES?. This charges are added in the bill which i have received from the party..
thnks rgds
vinod
8490095003
12 August 2025
Hello Vinod,
You're dealing with EPR Obligation Charges (Extended Producer Responsibility) — an environmental compliance cost (typically for plastic packaging, preforms, bottles, etc.).
✅ Which Ledger Group to Use in Tally Prime?
In Tally Prime, you should create a separate ledger for EPR Obligation Charges under the following:
📂 Ledger Group:
Indirect Expenses
Reason:
EPR charges are not directly related to your product’s cost.
They're treated as a statutory or compliance expense.
Not part of Direct Expenses unless you're a manufacturer embedding it into costing.
💡 How to Create It in Tally Prime:
Go to: Gateway of Tally > Accounts Info > Ledgers > Create
Name: EPR Obligation Charges
Under: Indirect Expenses
Type of ledger: Not a duty/tax
Maintain balances: Yes (optional based on your needs)
📋 Example Use Case in Purchase Invoice:
Particulars Amount
Purchase of Preform ₹10,000
EPR Obligation Charges ₹500
GST @ 18% ₹1,890
Total ₹12,390
So EPR Charges will appear as a separate line item under Indirect Expenses.
⚠️ Notes:
If you're collecting and paying EPR on behalf of another party or registered under CPCB/SPCB, consult your CA for exact treatment.
If EPR is considered a pass-through cost (recoverable from customer), then you may show it under Current Liabilities or Duties & Taxes, but that's rare for buyers.
You're dealing with EPR Obligation Charges (Extended Producer Responsibility) — an environmental compliance cost (typically for plastic packaging, preforms, bottles, etc.).
✅ Which Ledger Group to Use in Tally Prime?
In Tally Prime, you should create a separate ledger for EPR Obligation Charges under the following:
📂 Ledger Group:
Indirect Expenses
Reason:
EPR charges are not directly related to your product’s cost.
They're treated as a statutory or compliance expense.
Not part of Direct Expenses unless you're a manufacturer embedding it into costing.
💡 How to Create It in Tally Prime:
Go to: Gateway of Tally > Accounts Info > Ledgers > Create
Name: EPR Obligation Charges
Under: Indirect Expenses
Type of ledger: Not a duty/tax
Maintain balances: Yes (optional based on your needs)
📋 Example Use Case in Purchase Invoice:
Particulars Amount
Purchase of Preform ₹10,000
EPR Obligation Charges ₹500
GST @ 18% ₹1,890
Total ₹12,390
So EPR Charges will appear as a separate line item under Indirect Expenses.
⚠️ Notes:
If you're collecting and paying EPR on behalf of another party or registered under CPCB/SPCB, consult your CA for exact treatment.
If EPR is considered a pass-through cost (recoverable from customer), then you may show it under Current Liabilities or Duties & Taxes, but that's rare for buyers.
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