Defining Tariff Rates at Company, Group and Ledger Levels (Excise for Importer)

Excise tariff rates can be applied at a company, group or ledger level as needed.

Define Tariff Rates at Company Level

You can define the tariff rates at company level by enabling excise and providing the necessary excise details and duty rate.

Scenario: ABC company is an electronics company dealing with the import of laptops. They import only 12 inch Windows 8 laptops. Let us see how excise tariff can be defined and applied in a scenario like this.

To define tariff  rate at the company level

1. Press F11 (Features) > set Enable Excise to Yes.
   If you do not see this option:
   • Set Show more features to Yes.
   • Set Show all features to Yes. The Excise Registration Details screen appears.
2. Enter the excise details and define the duty rate. The Excise Tariff Details screen appears.
   Press Enter to save.
3. Press Enter to save the Excise Registration details.

To enter new tariff details or revised excise rate

1. Enter the new excise Rate.
2. Press Enter. The Tariff Details Applicability screen appears. Enter the Applicable From date.
3. Press Enter to save and return to Excise Registration Details screen.

You can also Press Alt+W (Details) from the Excise Tariff Details screen, enter the Applicable From date and provide the tariff details with revised excise duty.

Creating Duty Ledger

• Create a duty ledger with the Type of Duty as CENVAT and the Duty Head as Countervailing Duty.

Using Defined Duty Rate in a Transaction

On selecting the duty ledger created in a transaction, the duty rate is calculated.

Defining Tariff Rate at Group Level

Excise tariff rates can be applied at a group level by enabling the option to set or alter the excise details excise and making the necessary changes.

Scenario: National Traders is a company dealing with the imports of paints and distempers. They have different duty rates for different types of distempers. Now let us see how defining stock rate at the group level will simplify the process for National Traders.

Defining Tax Rate

To define the tariff rate at the stock group level

1. Gateway of Tally > Create > type or select Stock Item> and press Enter.
   Alternatively, press Alt+G (Go To) > Create Master > Stock Item > and press Enter.
2. Enable the option Set/alter excise details in the Stock group creation screen.
   
3. Enter the excise details and define the duty rate.
    

To enter new tariff details or revised excise rate

1. Enter the new excise Rate
2. Press Enter. The Tariff Details Applicability screen appears. Enter the Applicable From date.
3. Press Enter to save and return to Excise Registration Details screen.
   You can also press Alt+W (Details) from the Excise Tariff Details screen, enter the Applicable From date and provide the tariff details with revised excise duty.

Creating Stock item

Create the stock item under the group for which the duty rate has been defined.

Defining Duty Rates at the Ledger Level

Duty rates can be defined at the ledger level. Based on the requirement of the business, tax configuration can be made either in the ledger master or in the stock item master.

Scenario: GoIndia is a company that process and supply fuel to fuel stations. They sell petrol and diesel, both branded and unbranded. The duty rates for each one of their stock item is different. They will define the rates of duty in the stock item master level. Let us see how they record the sale of diesel and unleaded petrol.

Defining Duty Rates in the Stock Item Master

To define the tariff rate at the stock group level

1. Gateway of Tally > Create > type or select Stock Item> and press Enter.
   Alternatively, press Alt+G (Go To) > Create Master > Stock Item > and press Enter.
2. Enable the option Set/alter excise details in the Ledger creation screen.
3. Enter tariff details Tariff name, HSN code, and Reporting unit of measure.
4. Enter the excise details as required.

Using Defined Duty Rate in a Transaction

On selecting the duty ledgers created in a transaction, the duty rates are calculated according to the duty rate defined in the stock item master.

The tax analysis of  this transaction shows that duty has been calculated for each stock item based on the tax configuration made in the stock items.