Internal Auditor
647 Points
Posted on 10 July 2008
Excise duty is duty on production and such duty is payable by the Manufacturer on purchase of Inputs, Capital goods and input services and also on sale of finished products/goods.
The Accounting entries shall be as follows.
On Purchase.
Purchase A/c....... Dr ( Name/Type of Material purchased)
Excise Duty A/c.....Dr ( 14%of purchase value)
Ecess on Eduty.....Dr ( 2% of E duty)
S&HE Cess on Eduty.....Dr ( 1% of Eduty)
Sundry Creditors A/c