Regarding EPR Obligation Charges [Resolved]

This query is : Resolved

VINOD PUROHIT (Querist)

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 online

Aashok Kumar Sharma

(Expert)

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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