Excise duty

Hi friends,

in case of manufacturing co.  , whether we should book sale net of gross of excise duty, for ex    -     debtors ---dr  rs 120

                            to sale   100

                            to excise duty payable 20  

according to me the abovementioned entry should be passed,

then hy in balancesheet sales are shown inclusive of excise duty and , excise duty is separately deducted from sales fig...  is it according to any accounting standard or what??????

Replies (8)
Hi Bobby, According to AS Income should be recognised in Net Only. But as per IT Act Sale should be recognised in Gross and then Excise duty can be claimed as expenses after its due payment.
Hi As per Sales Tax Department Sale meens befour Sales Tax Amount( It meens inclusive Excise Duty & Cess ) same method for Income Tax Department Sale = befour Sales Tax Amount.
SIR WILL YOU PLEASE TELL ME IN MANUFACTURINFG PVT L. COMPANY WHEN EXCISE IS APPLICABLE ?? MY SINERE SAID THAT IT IS WHEN SALES CROSSES ONE CORE ...IS THIS CORRECT ....
Dear Bobby. if you have ibooked shown sales with Rs.120 then only you will reducereduce rs. 20 as excise duty. your entry is correct in books of account we shpuld do like that but while preparinf financial statement first we are adding to sale and trhen reducing from sale for presentation purpose. 2. Dear Nitesh this is not so , if the item is falling in ecxise tariff then you have to pay the central excise duty. further there are sceheme for SSI units. two notification 8/2000 and 9/2000. these are providing exemption
Dear Sir, sales entery is = party A/c Dr Rs 121=14 sales A/c Cr Rs 100=00 Duty Paiable Cr Rs 16=00 Cess Payable Cr Rs 00.32 Cess S& H payable Cr Rs 00.16 out put Vat Payable Cr Rs. 4=66 Now You should pass an other Entery on monthly basis for Excise Duty added in sales amount as per sales tax department & as per Balance sheet= Excise duty paid Dr Rs 16.000 Cess Paid Dr Rs 00.32 Cess S & H Paid Dr Rs 00=16 Sales Local CR Rs. 16.48 Now You should pass an other Entery on monthly basis at time of payment maid=Duty payable Dr Rs.16=00 RG23A Part II Cr Rs 10=00 RG 23C Part II Cr Rs. 2=00 Service Tax Cr Rs 2=00 PLA Cr Rs 2=00 Like this Cess entery should be pass Like this Cess S & H Entery should be pass
I agree
in books a/c Sales = 100. Entry parties a/c Dr. 121.13 sales cr. 100 ED+cess+ she cr 16.48 CST @ 4 Cr 4.65.
i want more details on notification no.39 dated13.11.07

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