Assignment on Excise (for manufacturer) in Tally.

ERP9
Q.No.1 Create a company as M/S Metal Craft Engineering Pvt. Ltd with Account with inventory. Q.No.2 Enable excise for Manufacturers:a)GOT>F11>Statutory and taxation>Enable excise to YES Set/Alter Excise Details to YES b)Registration Type: Manufacturer Excise Registration Code : KABCC3220DXL003 Type of Manufacturer: Regular Large Tax Payer Unit(LTU): Skip Excise Book Name(as per Rule11): MCE/Rule11/Book-1/11-12 Range; Code-090506/Name-Hosur Commissioner ate; Code-06/Name-Bangalore V Q.No.3 Enable Value Added Tax Q.No.4 EXCISE BASED ON MRP (Maximum Retail Price) On 1/4/2011 M/S Metal Craft Engineering Purchase the following excisable goods from Durga Steels Industries. Name of the Item(Raw materials) Qty Rate Iron Bars 1000 Kgs Rs35/This item is Subject to Basic Excise Duty@16 %( now14%), Educational Cess@2%, SHEC@1% and Input Vat@4%. Answer: Follow the hint given at the end of this session. IRON BARS..Rs35000/(1000*35) BASIC EXCISE DUTY...Rs5600/(35000*16%) EDUCATIONAL CESSRs112/(5600*2%) SHEC..Rs56/(5600*1%) INPUT VAT@4%........................................Rs1630.72/- (4% of 40768) 3500+5600+112+56=40768 Q.No.5 EXCISE BASED ON SPECIFIC RATE On 3/4/2011 M/S Metal Craft Engineering purchase the following excisable goods from BEEKAY ENGINEERING CORPORATION. Name of the Item(Raw materials) Qty Rate Steel Sheets 600 Kgs Rs42/This item is Subject to Basic Excise Duty@16 %( now14%), Educational Cess@2%, SHEC@1% and Input Vat@12.5%. The above duty of excise payable in the above purchase is claimable as Cenvat Credit. Answer: Follow the hint given at the end of this session. STEEL SHEETS Rs25200/(600*42) BASIC EXCISE DUTY Rs9600/(600*16%) EDUCATIONAL CESSRs1200/(600*2%) SHEC .Rs600/(600*1%) INPUT VAT@12.5%.............Rs1630.72/- (12.5% of 36600)

25200+9600+1200+600=36600

Q.No.6 On 6/4/2011 M/S Metal Craft Engineering manufactured the following Excisable goods. Name of the Item(Finished Goods) Hot Rolled Beams-25mm Name of the Item(Raw Materials) Iron Bars Steel Sheets Answer: Additional cost: Rs1000/Qty 2Kgs 1Kg Qty Produced 300 Nos Labour charges incurred Rs1000/- during the process of manufacturing

To manufacture 1 Hot Rolled Beams-25mm, the following inputs are required in the given proportions.

Effective Cost: Rs34600/-

Effective Rate: Rs115.33/-

Q.No.7 On 6/4/2011 M/S Metal Craft Engineering manufactured the following Excisable goods. Name of the Item(Finished Goods) Qty Produced Cold Rolled Channels-10mm 200 Nos To manufacture 1 Cold Rolled Channels-10mm, the following inputs are required in the given proportions. Name of the Item(Raw Materials) Irons Bars Steel Sheets Answer: Additional cost: Rs1500/Q.No.8 EXCISE BASED ON AD VALOREM On 10/4/2011 M/S Metal Craft Engineering sold the following excisable goods to Simplex Costing Limited. Vide Invoice No-MCE/101/10-11 Qty 1Kgs 1 Kgs Labour charges incurred Rs1500/- during the process of manufacturing

Effective Cost: Rs16900/-

Effective Rate: Rs84.50/-

Name of the Item Hot Rolled Beams-25mm

Qty 200

Rate Rs360/-

The above goods are subject to Basic Excise Duty@16%, Educational Cess@2%, SHEC @1% and Output Vat@4%. Answer: HOT ROLLED BEAMS 25mm Rs72000/(200*360) BASIC EXCISE DUTY Rs11520/(7200*16%) EDUCATIONAL CESS. Rs230.40/(11520*2%) SHEC . Rs115.20/(11520*1%) OUTPUT VAT@4%.....................................................Rs3354.62/(4% of 83865.6) 72000+11520+230.40+115.20=83865.6 Q.No.9 On 16/4/2011 M/S Metal Craft Engineering sold the following excisable goods to General Fabrication. Vide Invoice No. MCE/102/10-11

Name of the Item Hot Rolled Beams-25mm Cols Rolled Channels-10mm

Qty 100Kgs 100Kgs

Rate Rs360/ Rs300/-

Total Value Rs36000/Rs30000/-

Vat(%) 4% 12.5%

The above goods are subject to Basic Excise Duty@16%,Educational cess@2%, SHEC @1%. Additionally, Packing charges of Rs5000/- was incurred during transit and the same is also subject to Excise Duty as applicable on the goods. Answer: HOT ROLLED BEAMS 25mm Rs36000/COLD ROLLED CHANNELS 10MM.RS30000/PACKING CHARGESRs5000/BASIC EXCISE DUTY Rs11360/EDUCATIONAL CESS. Rs227.20/SHEC . Rs113.60/OUTPUT VAT@4%......................................Rs1804.38/OUTPUT VAT12.5%......................................Rs4698.91/(100*360) (100*300)

Q.No.10 On 21/4/11 M/S Metal Craft Engineering manufactured the following Excisable goods.

Name of the Item(Finished Goods) Qty Produced Slotted Angle-10mm 50 Nos To manufacture 1 Slotted Angle 10mm the following input are required in the given proportion.

Raw material required Steel sheets Answer: Additional cost: Rs300/-

Qty 1Kg

Labour charges incurred Rs300/- during the process of manufacturing

Effective Cost: Rs2400/-

Effective Rate: Rs48/-

Q.No.11 On 22/4/11 M/S Metal Craft Engineering sold the following Excisable goods to Simplex Costing Limited. Vide Invoice No. MCE/103/10-11 Name of the Item Qty Rate Total Value VAT(%) Slotted Angle-10mm 50 Kgs Rs250/Rs12500/12.5% Cold Rolled Channels-10mm 100 Kgs Rs300/Rs30000/12.5% The above goods are subject to Basic Excise Duty@16%, Educational Cess@2%,SHEC@1%. Answer: SLOTTED ANGLE-10mm Rs12500/COLD ROLLED CHANNELS 10MM.RS30000/BASIC EXCISE DUTY Rs5600/EDUCATIONAL CESS. Rs196/SHEC . Rs98/OUTPUT VAT12.5%......................................Rs6049.25/(50*250) (100*300)

Q.No.12

On 28/4/11 M/S Simplex Costing Limited returned the following goods to Metal Craft Engineering.

Name of the Item Hot Rolled Beams-25mm

Qty 10Kgs

Rate Rs360/-

Total Value Rs3600/-

Vat(%) 4%

Answer: Credit noteuse for goods returned.

COLD ROLLED CHANNELS 10MM.RS3600/BASIC EXCISE DUTY Rs576/EDUCATIONAL CESS. Rs11.52/SHEC . Rs5.76/OUTPUT VAT12.5%......................................Rs167.73/-

(10*360)

Q.No.13 GOT>Account Info>Voucher Type>Alter>Journal>Name of class>Cenvat credit Adjustment Q.No.14 On 30/4/11 M/S Meta Craft Engineering availed CENVAT credit on Duties of Excise paid on purchase during the month of april11. Answer: Pass the following entry: GOT>Acct. Voucher>Journal> Credit Adj. for the period of April

Basic Excise Duty16%................Dr 9600 Educational Cess2%...................Dr 1200 SHEC@1%...................................Dr 600 To Basic Excise Duty16%(CENVAT)................Dr 9600 Educational Cess2%(CENVAT)...................Dr 1200 SHEC@1%(CENVAT)...................................Dr 600 Q.No.15 On 4/5/2011 Metal Craft Engineering paid the Excise duty for the month of April vide Cheque No156877 Answer: Basic Excise DutyDr18304 To HDFC BANK.18304

HINT
1.Create the following Voucher Types
Voucher Types Excise purchase Excise sale Sales Return Purchase Return Manufacturing journal Type of Voucher Purchase Sales Credit- Note Debit Note Stock Journal Abbreviate Ex-Pur Ex-sale Ex-C Note Ex-D Note Ex-Stk Journal Use for excise Yes Yes Yes Yes Default excise unit Metal Craft Engineering Metal Craft Engineering Metal Craft Engineering Metal Craft Engineering -

2. Create the following expenses ledgers

Ledger Packing charges Freight charges Labour charges Under Inventory Values are affected Indirect expenses No Indirect expenses No Indirect expenses No Use for assessable value calculation Yes Yes Yes Method of Apportonment Based on value Based on value Based on value

3. Create the following Excise Duty Ledger.

Ledger Basic Excise Duty@16% Educational Cess@2% SHEC@1%

Under Duties /Taxes Duties /Taxes Duties /Taxes

Type of Duty/Taxes Excise Excise Excise

Duty Head Basic Excise Duty Educational cess SHEC

Inventory values are affected No No No

4. Create the following CENVAT LEDGER

Ledger Under Type of Duties/Taxes CENVAT Excise Accounting Code 00490027 Duty Head Basic Excise Duty Educational Cess SHEC Percentage of calculation 16% Method of Calculation ON Ass. Value On Total Excise Duty On Total Excise Duty

Basic Excise Duty (Cenvat) Educational Cess (Cenvat) SHEC (Cenvat)

Current Asset Current Asset Current Asset

CENVAT CENVAT

00490028 00490029

2% 1%

5. Create the following Vat ledgers:

Ledger Input Vat@4% Input Vat@12.5% Output Vat@4% Output Vat@12.5% Under Duties and Taxes Duties and Taxes Duties and Taxes Duties and Taxes Type of Duty/Taxes VAT VAT VAT VAT Vat/Tax Class Input Vat@4% Input Vat@12.5% Output Vat@4% Output Vat@12.5% Inventory Values are affected No No No No

6. Create the following Stock Items.

Name Stock Group UOM Tariff Set/Alter Classification Excise Details 72221111 72221191 72221199 72221992 72221166 Yes Yes Yes Yes Yes Valuation Type MRP Ad Quantum Ad Valorem Ad Valorem Ad Quantum Rate of Vat

Irons Bars Steel Sheets Hot Rolled Beams-25mm Cold Rolled Channels-10mm Slotted Angles

Raw Materials Raw Materials Finished Goods Finished Goods Finished Goods

Kgs Kgs Nos Nos Nos

4% 12.5% 4% 12.5% 12.5%