Less excise duty from gross sales/revnue from operations

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2016 Dear Experts
Pls clarify in which case Excise duty will be less from gross sales/revenue from operations i.e.
Gross sales/revenue from operation 100000
Less Excise duty 10000
Net Gross sales/revenue from operations 90000

Pls clarify....

Thanks In Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 December 2016 Excise duty is a tax liability collected from the customers and payable to the govt, so it will be credited to excise duty ac as liability and debited when it is paid to govt. In such a manner of accounting it will be reduced from gross sales.

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2016 Sir we also collect the vat from customers and paid to Govt so why vat is not to be less from gross sales like ED....pls clarify with an example if possible

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 December 2016 Like ED VAT can be also less from gross sales. If VAT is not less from gross sales VAT payment is charged as expense.

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2016 sir assume :- on issue of invoice i have passed following entry
cash DR....110000
To Excisable Sales.........100000
TO Excise duty payable...10000

so after passing this entry only RS. 100000 will be reflect as sales in trading which is Net sales amount/product value
then why 10000 will be less from 100000

pls clarify....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 December 2016 You have already reduced excise duty from sales by passing the above entry. No need for further less 10000 from 100000.

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2016 ok now its clear sir one more query.... my brother is running restaurant wherein he is charging 14.5% vat and 6% service tax on gross value pls tell me how the accounting entry will be pass
assume the customer has eaten palak paneer Rs. 100
vat 14.5% 14.5
ST 6% 6%
total bill amount 121 in round figure. pls clarify how this entry will be pass in tally

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 December 2016 Cash ac Dr 121
sales cr 100
VAT cr 14.50
ST cr 6
Rounding off cr .50

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2016 Sir in this entry.... will No Service charge be disclosed only sales with full amount Rs. 100 be taken?
Pls clarify

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 December 2016 Yes Rs. 100 to be taken as sales. If need be you can break it.

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