Regarding EPR Obligation Charges

This query is : Resolved

VINOD PUROHIT (Querist)
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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

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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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.

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