Central excise

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Dear Friends

if X was registered under cantral excise as a dealer & purchase coal from MCL with paid excise duty 

Basic purchase price = 100.00, Excise Duty = 6.00, vat @ 4% = 4.24,total purchase cost = 110.24 and excise duty pass to the manufacture under invoce Rule 11 .

sell coal to a sponge iron manufacture Rs. 115.00 with vat @ 4% = 4.60 total sell vale = 119.6

Can the manufacture co. paid Rs. 119.6 + excise duty Rs. 6  = 125.60

and how to accounting entry pass by the delear of the above excise duty 

 

 

 

Replies (2)

Dear Sir,

Their are two ways to raised invoice by a dealer to a manufacturer.

1) METHOD DUTY PASS AMOUNT   A.V.      115.00
  EXCISE           6.00   ADD EXCISE           6.00
        SUB TOTAL      121.00
        VAT           4.84
        NET TOTAL      125.84
           
2) METHOD DUTY PASS AMOUNT   A.V.      115.00
  EXCISE           6.00   ADD EXCISE                -  
        SUB TOTAL      115.00
        VAT           4.60
        NET TOTAL      119.60

In dealer or trading excise invoice we raised bill including excise or excluding excise duty (i.e. pass on by us on the base of manufacturer or importer invoice details)

Rajesh Sehgal

Sir,

In accounting entry treatment just make simple purchase entry while using Tally software & make manual excise bill i.e.

If including excise duty

1.Party A/c - Dr.

  To Purchase A/c - Cr. & To Excise Duty A/c - Cr. (if you including) & To Vat A/c - Cr.

If excluding excise duty

2. Party A/c - Dr.

    To Purchase A/c - Cr. & To Vat A/c - Cr.

And any other software automatic entry pass on when you raised the invoice.

Rajesh Sehgal
 

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