excise duty

U might be knowing  there are thousands of manufacturers in the country.

who manufactures and as well there are traders who only purchases and sells the goods.

So these manufacturers has to pay excise duty on the goods manufactured by them to the govt.

Excise Duty will be collected from the customers to whom such goods are sold by charging @ 14% on the value of the goods.

Accounting Entry will be

Bank A/c.......... 1140

to sales A/c                     1000

to Excise Duty A/c.            140

(Being SAles made)

Then while making payment to Govt

Excise Duty A/c. Dr   140

to  Bank     A/c                      140

it is a duty which is leaved on the goods which is manufatured in india.

it is leavd by central government.

thanks

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  

it means that there is also a statment of excise duty payment made in which we calculate input excise tax and out put excise tax. and if any difference comes that amount will be refund or payable to central govt.

1. at quartely statment prepared or yearly.

2. For business Research and development  and financial consultancy company at wht rate should be charged.

How to colculate monthly liability to excise department ?