Once after migrating Excise data of previous release to release 5 Tariff details of stock item need to be configured. In Release 5 duty details has to be defined based on the hierarchy required. Hence without configuring Tariff details you cannot start recording invoices.
From Release 5.1, Tax Rate Setup is provided to assist the user to smoothly configure the EXCISE details (HSN code, Reporting UOM, Valuation type, Duty heads and Duty %) for Stock groups / items. This assists in quick configuration of Excise rate details from a single report from Release 5.1.
Note: This report is available only in a company which was created in any release prior to Release 5.0 and later migrated to Release 5.x. If a company is newly created in Release 5.x, this report will not be available as it has been given for easier transition from Release 4.9x to release 5.x.
Click here for Excise Tax rate setup.
In most scenarios the business can define the tax rules in few minutes and start recording transactions.
Follow the steps to configure tax rates and other excise details manually based on your business as mentioned below:-
a) I am dealing with stock items which have one excise duty rate.
Steps to configure one excise duty rate for all stock items in my company.
- From Gateway of Tally > F11 > F3 (Statutory & taxation) > enable excise = Yes > Set/alter excise details = Yes
- Enable the option Set/alter excise tariff details
- Provide excise details as shown below
Note: - When you record any transaction the defined rate will be applied automatically.
b) I am dealing with multiple stock items with multiple duty rates. The stock items can be classified into groups, such that each group has a common excise duty rate. For example, batteries, Sports Equipment’s, etc.
- Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter
- Select the required Stock Group
- Enable Set/ Alter Excise Details.
- Provide tariff details as shown below
c) Duty ledger: - Duty ledgers which was configured under Excise in previous release of 5 should be reconfigured as "CENVAT". Because in release 5 'Excise' duty type is not available.
You need to set to tax type as CENVAT in duty ledgers.
To configure CENVAT duty ledgers
1. Go to Gateway of Tally > Accounts Info. > Ledger > Alter.
2. Select the duty ledger.
3. Select the Type of Duty/Tax as CENVAT.
4. Select the applicable Duty Head e.g.:- Basic excise duty
5. Accept the Ledger Alteration screen.
Next:
a) Company IEC Code has to be reconfigured
b) Party ledger - jurisdiction details has to be reconfigured
