Excise tax's treatment in books of account

yes

required excise tax book

if sale shown including excise duty then excise duty shown as an exp.is right

Hi Friends,

I would like to make one thing clear. As per AS-2 on Inventory Valuation and Guidance Note On Acounting for MODVAT/CENVAT credit, w.e.f. 1.4.1999 exclusive method of accounting is to be followed while accounting of excise or vat . As a result profit and loss account is not affected at all. Excise Duty collected on sales is credited to liability account. , excise duty paid on purchases and paid through PLA is accounted in current assets. In short accounting of Excise and VAT is routed through Balancesheet and Profit & Loss A/c. This is also the reason why we have to prepare 145A statement in income tax audit and show that there is no effect on profit.

I have no Idea in excise duty .Pls.Write me about PLA IN EXCISE