Transcript The Way to Success … Ak Technologies Mo. +91-94264 50998 | 98253 78685 Email.

The Way to Success …
Ak Technologies
Mo. +91-94264 50998 | 98253 78685
Email. [email protected]
Visit. www.aksoftwares.in
Start
The Way to Success …
Manufacturing Excise Tutorial
Excise Setup in Miracle
Statutory Information of
Manufacturing Excise
Learn to use Manufacturing
Excise in Miracle
Manufacturing Excise Tutorial
1
What is Excise Duty ?
2
What is the Difference between Small Scale Industry and Large TaxPayer ?
3
What is CETSH No. ?
4
Different Methods for valuation of Excise Duty.
5
What is ECC Number ?
6
What are Range / Division / Commissionerate ?
7
What is Removed As Such ?
8
What is Captive Comsumption ?
9
What is CENVAT Utilization / CENVAT Adjustment ?
10
Details of Different Registers / Returns.
Manufacturing Excise Tutorial
1
What is Excise Duty ?
Excise Duty is an Indirect Tax which is levied and collected on the goods/commodities manufactured in India.
Generally, Manufacturer of Commodities is responsible to pay duty to the Government.
Generally known as ”Central Excise Duty”
2
What is the Difference between Small Scale Industry and Large TaxPayer ?
3
What is CETSH No. ?
4
Different Methods for valuation of Excise Duty.
5
What is ECC Number ?
6
What are Range / Division / Commissionerate ?
7
What is Removed As Such ?
8
What is Captive Comsumption ?
9
What is CENVAT Utilization / CENVAT Adjustment ?
Manufacturing Excise Tutorial
1
What is Excise Duty ?
2
What is the Difference between Small Scale Industry and Large TaxPayer ?
Large TaxPayer
Larger TaxPayer unit has to file following returns :
 E.R. – I (Monthly Basis)
 E.R. – 5 (CENVAT – Annual Return of information relating to principal inputs)
 E.R. – 6 (CENVAT – Monthly Return of information relating to principal inputs)
Small Scale Industry
Small Scale Industry has to file following returns :
 E.R. – 3 (Quarterly returns for production and removal of goods and other relevant
particulars and CENVAT credit)
3
What is CETSH No. ?
4
Different Methods for valuation of Excise Duty.
5
What is ECC Number ?
6
What are Range / Division / Commissionerate ?
7
What is Removed As Such ?
Manufacturing Excise Tutorial
1
What is Excise Duty ?
2
What is the Difference between Small Scale Industry and Large TaxPayer ?
3
What is CETSH No. ?
Full Form of CETSH No. is Central Excise Tariff Sub Heading No.
It is product code / product category code defined by the Central Excise Department.
4
Different Methods for valuation of Excise Duty.
5
What is ECC Number ?
6
What are Range / Division / Commissionerate ?
7
What is Removed As Such ?
8
What is Captive Comsumption ?
9
What is CENVAT Utilization / CENVAT Adjustment ?
10
Details of Different Registers / Returns.
Manufacturing Excise Tutorial
1
What is Excise Duty ?
2
What is the Difference between Small Scale Industry and Large TaxPayer ?
3
What is CETSH No. ?
4
Different Methods for valuation of Excise Duty.
Value of the excisable goods has to be necessarily determined to levy the duty on the goods. Under the Central
Excise Act, 1944, the following methods of valuation of goods are considered for the assessment of Duty :



Ad Volarem / Transaction Value
Ad Quantum / Quantity, Measurement or Volume Based
MRP Based
5
What is ECC Number ?
6
What are Range / Division / Commissionerate ?
7
What is Removed As Such ?
8
What is Captive Comsumption ?
Manufacturing Excise Tutorial
4
Different Methods for valuation of Excise Duty.
5
What is ECC Number ?
ECC Number : Full form of ECC is Excise Control Code. The ECC Number is a registration number issued to all the
Central Excise Assesses. This Number is based on the principles of ”Common Business Identifier” which shall be
used for revenue accounting, validation of documents (e.g. CENVAT invoices), inter agency co-ordination and
creation of data warehouse.
ECC Number is PAN based 15 digit alpha numeric numbers. The first part denotes 10 character (alpha-numeric)
Permanent Numbers issued by the Income Tax Authorities to the concerned person to whom the ECC Number is
to be alloted and the second part comprises of a fixed 2 character alpha code which is as follows :
Category Code
1 – Central Excice Manufacture including registered warehouses (XM)
2 – Central Excise Registered Dealers (XD)
This is followed by 3 characters numeric code (001, 002, 003, etc.). In case of manufacturer, registered with the
Central Excise Department have only one factory / dealer’s premises / warehouse the last three characters will be
001.
If there are more than one factories / warehouses / dealer’s premises of such a person having common PAN
(Income Tax) for all such factories / warehouses / dealer’s premises the last 3 characters of the new ECC would be
002, 003, etc.
6
What are Range / Division / Commissionerate ?
7
What is Removed As Such ?
Manufacturing Excise Tutorial
4
Different Methods for valuation of Excise Duty.
5
What is ECC Number ?
6
What are Range / Division / Commissionerate ?
Commissionerate :
The commissionerate is headed by the Commissioner who is equivalent in Rank to The Divisional Commissioner in
the State. The Commissioner is the Supervisory Head and final decision making authority with regards to the
disputes regarding the levy of Central Excise Duty in this Jurisdiction.
A Commissionerate can have more than one Division offices under it.
Division :
There are subordinate field formation to Commissionerate is called Division headed by Dy / Asst. Commissioner or
Supdt of Central Excise. There are five or more Ranges under Each Division.
Range :
Range Office is headed by the Range Officer of the division assisted by 2 to 5 inspectors under him.
Each Commissionerate / Division / Range has been given a unique code and name for easy identification; assessee
must have to write Name, Code and Address in invoices.
7
What is Removed As Such ?
8
What is Captive Comsumption ?
Manufacturing Excise Tutorial
3
What is CETSH No. ?
4
Different Methods for valuation of Excise Duty.
5
What is ECC Number ?
6
What are Range / Division / Commissionerate ?
7
What is Removed As Such ?
Any manufacturer brings goods in their premises, after that he remove / sell the goods as it is (means without any
change, or without using it in production, or partially production done), then it will be called as ”Removed As
Such”
Manufacturers can sell / remove materials with removal type ”Removed As Such” for Principal Inputs as well as
Capital Goods.
There are certain rules for posting in different reports / registers which depends on whether manufacturer has
availed / utilized CENVAT Credit or Not.
8
What is Captive Comsumption ?
9
What is CENVAT Utilization / CENVAT Adjustment ?
Manufacturing Excise Tutorial
3
What is CETSH No. ?
4
Different Methods for valuation of Excise Duty.
5
What is ECC Number ?
6
What are Range / Division / Commissionerate ?
7
What is Removed As Such ?
8
What is Captive Comsumption ?
In simple words we can define Captive Consumption as semi-finished goods.
Some Excisable units produce semi-finised goods / wastage which are useful to produce another finished product.
In such case consumption of semi-finished goods or wastage is called Captive Consumption in terms of Central
Excise.
In terms of software operating, if we select Finished Product (defined while creating the product) as Raw-material
in production voucher, then it will be considered as Captive Consumption.
9
What is CENVAT Utilization / CENVAT Adjustment ?
10
Details of Different Registers / Returns.
Manufacturing Excise Tutorial
6
What are Range / Division / Commissionerate ?
7
What is Removed As Such ?
8
What is Captive Comsumption ?
9
What is CENVAT Utilization / CENVAT Adjustment ?
We can avail CENVAT credit for :
 Purchase of Goods
 Purchase of Capital Goods
 Service Tax
Credit can be taken for all servies used in relation to setting up, modernization or repairs of a factory, services
relating to advertisement or sales promotion, management, recruitment, etc.
We cannot get CENVAT Credit as soos as we records Purchase Invoice for accounting. There are certain rules &
regulations to avail CENVAT Credit.
There are certain rules like, if goods are not processed, if supplier has not paid the duty, etc.
E.g. If we purchases multiple goods and avail Excise Duty Credit of Rs. 15000, we may not be eligible to take the
entire sum of Rs. 15000 as CENVAT Credit.
Also, In some cases we may be able to avail more than 15000 as CENVAT Credit, if we avail any service tax credit.
10
Details of Different Registers / Returns.
Manufacturing Excise Tutorial
6
What are Range / Division / Commissionerate ?
7
What is Removed As Such ?
8
What is Captive Comsumption ?
9
What is CENVAT Utilization / CENVAT Adjustment ?
10
Details of Different Registers / Returns.
1
Registers (Click For More Details)
R.G. I (Daily Stock Account)
 Annexure 18 (Form IV)
 Annexure 10
 R.G. 23A Part – I
 R.G. 23A Part – II
 CENVAT Credit Register
 P.L.A. (Personal Ledger Account) Register
2
Returns (Click For More Details)
 E.R. 1
 E.R. 3
 E.R. 5
 E.R. 6
Manufacturing Excise Tutorial
4
Different Methods for valuation of Excise Duty.
1
Ad Volarem / Transaction Value
Transaction Value includes receipts / recoveries or charges incurred or expenses provided for in connection with the
manufacturing, marketing, selling of the excisable goods to be part of the price payable for the goods sold.
For applicability of transaction value (ad valorem) in a given case, for assessment purposes, the following requirements
should be satisfied :
 The goods are sold by an assessee for delivery at the time and place of removal
The term Place of Removal includes factory, warehouse, depot or premises of a consignment agent,
 The assessee and the buyer of the goods are not related
 The price is the sole consideration for the sale
If any one of the above requirements is not satisfied, then the transaction value shall not be the assessable value and
value in such case has to be arrived at under the valuation rule.
Manufacturing Excise Tutorial
4
Different Methods for valuation of Excise Duty.
2
Ad Quantum / Quantity, Measurement or Volume Based
Central Excise has fixed Rate of Duty for few selected items like Water, Sugar, Cigarette, etc. Duty is payable on basis of
Length for Cigarette, Kg for Sugar and Litre for Water
Manufacturing Excise Tutorial
4
Different Methods for valuation of Excise Duty.
3
MRP Based
In simple words, for the MRP based products like Toothpaste, Tooth Powder, Detergent Powder or any other product.
Here, we take Toothpaste as example; MRP printed on the package is not the sale price from Manufacturer, Distributor,
Dealer or Reseller. In such cases assessee have to deduct abatement from MRP and it will be the assessable value for
such goods.
Following factors needs to be considered while determining the value on the basis of Maximum Retail Sale Price.
 The goods should be covered under provisions of Standards of Weight & Measures Act.
 Central Government can permit reasonable abatement (deductions) from the ’Retail Sale Price’. While allowing
such abatment, Central Governement shall take into account Excise Duty, Sales Tax and other Taxes Payable on
the goods.
 If more than one ’Retail Sale Price’ is printed on the same packing, the maximum of such retail price will be
considered.
 The ’Retail Sale Price’ should be the maximum price at which excisable goods in packaged forms are sold to
ultimate consumer. It includes all taxes, freight, transport charges, commission payable to dealer and all charges
towards advertisement, delivery, packing, forwarding charges, etc.
 Central Government has to issue a notification in Office gazetter specifying the commodities for which the
provision is applicable and the abatements permissible.
Manufacturing Excise Tutorial
10
Details of Different Registers / Returns.
List of Registers :
R.G. I (Daily Stock Account) : Daily Stock Account generally known as DSA, Full Form of R.G. 1 is ”Register of Goods 1”.
It is compulsory to maintain this register for every assessee. RG 1 contains records for goods manufactured or produced
(Production Voucher / Bill of Material) on daily basis, and it also contains Removal of Goods (Excise Sales Invoice Details)
with Duty Amount and Invoice Number. In simple words this register contains production and sales voucher on daily
basis for each product.
This register has details about Description goods, Opening Quantity, Quantity produced / manufactured, Quantity
removed, Assessable Value, Duty Payable and Duty Actually Paid.
Annexure 18 (Form IV) : Daily Stock Account for Raw Material.
Annexure 10 : Annexure for CENVAT Credit Register with Quantity.
R.G. 23A Part – I : The manufacturer has to maintain record of each input (principle goods / raw material) separately in
prescribed register in Form RG 23A Part I. This register is essentially a stock register, which gives quantitative details of
each input received (with details of duty paying documents), quantity issued for production, issued for a clearance as
such (sales invoice for principle goods / raw material and quantity lying in stock on any day.
In simple words this is raw material stock register.
R.G. 23A Part – II : RG 23A Part II, which is similar to PLA. It is a current account of MODVAT credit received, credit
utilized and credit balance. This gives details of (a) credit availed against each input (purchase invoice) (b) credit utilized
against clearance of final products / waste / inputs as such (Sales Invoice) (c) Balance Credit available.
CENVAT Credit Register : It is a purchase register with separate columns for Excise Duty, E.Cess and S.H.E.Cess. It
contains only excise purchase invoice entries.
P.L.A. (Personal Ledger Account) Register : It is Excise Sales Register, it records Excise Sales Invoice transaction on
which assessee had collected excise duty which is payable to central excise department, it also contains details of
payment towards Central Excise Department and balance amount of duty.
Manufacturing Excise Tutorial
10
Details of Different Registers / Returns.
List of Returns :
E.R. 1 : Monthly Return for Large TaxPayers, contains details of prodution and removal of goods and other relevant
particulars and CENVAT credit.
E.R. 3 : Quarterly Return for Small Scale Industries, contains details of prodution and removal of goods and other
relevant particulars and CENVAT credit.
E.R. 5 : Annual Return for Large TaxPayers, contains details of information relating to principle inputs
E.R. 6 : Monthly Return for Large TaxPayers, contains details of information relating to principle inputs
Excise Setup in Miracle
Setup
Company Setup
Sales Entry Setup
Purchase Entry Setup
Account / Product Master
Account Master
Commodity Master
Product Master
Transaction Entry
Purchase Entry and its Effects in reports
Production / Captive Comsumption Entry & Its Effects in reports
Sales Entry & Its Effects in reports
Sales Return & Its Effects in reports and D3 Register
Excise Payment Entry & Excise Returns
Company Setup
Click on
Company
Setup Menu
Main Menu
Company Setup
Click on
Excise Setup
Menu
Main Menu
Company Setup
Double Click OR Press Enter
Twice on Excise Type Option to
Select Manufacturing Excise in
Value
Main Menu
Company Setup
Double Click on
Manufacturing Excise Detail
to give company’s excise
details.
Main Menu
Company Setup
Press Enter on
Excise Book Name,
which will be asked in
Excise Sales Invoice
Enter Prefix for Excise
Sales Invoice
Select YES here if you
want to reset number
to 1 at the starting of
each new financial
year
Main Menu
Company Setup
Select YES in
Auto Open Account
Option to create
required excise duty
accounts
Main Menu
Company Setup
Select appropriate
Nature of Manufacturer
There are two options :
1. Small Scale Industry
2. Large Tax Payer
If Assesses require to fill up
Excise Return by E.R. 3 then
Select Small Scale Industry
Otherwise Select Large Tax Payer
Main Menu
Company Setup
If Lumpsum is selected as Yes then
ER-8 document is to be filed, if it is No
then ER-3 is to be filed.
Main Menu
Company Setup
Effect of Selecting Yes in Lumpsum
Main Menu
Company Setup
If Automatic is selected here then
Sales entry is automatically placed
in PLA register
In case Manual is selected here
then, sale entry is not placed in PLA
Register and entry is to be done by
using PLA Debit.
Main Menu
Company Setup
Using this option in Form ER-1
Section-3, Grouping of records can
be done either Commodity wise or
according to CETSH No.
Main Menu
Company Setup
Select YES if you
require Invoice No. &
Excise No. Same
Main Menu
Company Setup
Notification No. & Notification Serial No.
will be asked in Excise Sales Invoice,
If we Select YES in this Option
Main Menu
Company Setup
Effect of selecting Yes in Notification Detail Required
Main Menu
Company Setup
Select YES in this Option,
If Separate Consignee Details required
in Sales Voucher.
Generally Separate Consignee Detail
requires when there is different
consignee than buyer.
Means buyer and Consignee are not
same.
Main Menu
Company Setup
Effect of Separate Consignee Details = Voucher
wise
Main Menu
Company Setup
Select YES in this Option,
If Separate Consignee Details required
in Purchase Voucher.
Generally Separate Consignee Detail
requires when there is different
consignee than seller.
Means seller and Consignee are not
same.
Main Menu
Company Setup
Effect of Separate Consignee Detail in Purchase =
Voucher wise
Main Menu
Company Setup
On Selecting Yes ,
it will ask for bill no and date of the
selected Consignee type
Main Menu
Company Setup
Effect of Consignee Bill Detail Required? = Yes
Main Menu
Company Setup
If Payment is selected,
on making payments the user will be
asked to select the commodity for
which payment is done.
If CENVAT Adjustment is selected ,
on passing entry it will ask the user to
select the commodity and its amount
for the entry.
Both means the Commodity selection
will be asked for both Payment and the
CENVAT Adjustment.
Main Menu
Company Setup
Effect of commodity wise entry Required? = Payment
Main Menu
Company Setup
If this option is selected , then on
passing entries it will ask you to enter
the excise date.
If Part-1 is selected, then the excise date
given will be shown in R.G..23-A.Part-1
If Part-2 is selected, then the excise date
given will be shown in R.G. 23–A Part-2
If Both is selected, then the excise date
given will be shown in both the above
reports.
Main Menu
Company Setup
Effect of Excise Date Required? = Part-1
Main Menu
Company Setup
Effect of Excise Date Required? = Part-1
Main Menu
Company Setup
On entering a new product it will ask the
user to enter the Opening Stock with
Excise and non-excise able products.
Main Menu
Company Setup
In Production Consumption Entry, while
making the entry for the finished product,
each and every raw material unit will be
asked whether it is Excisable or NonExcisable.
Main Menu
Company Setup
While passing the purchase entry,
whether or not the Manufacturer
Consignee option should be shown in
Nature of Purchase list along with other
types like First Stage Dealer, Importer,
Manufacturer, Second Stage Dealer,
Purchase from Importer.
Main Menu
Company Setup
In Revenue Sheet it is used to show the
values of expenses in products related to
petroleum
Main Menu
Company Setup
Effect of Petroleum Products Required = Yes
Main Menu
Account Master
Changes related to Excise in Account
Master
There are two changes in Account Master
Party Account
While creating an Account under the group head of Sundry Debtors or Sundry Creditors, that is, when we are creating a Party
Account, we have to select YES if party registered with Central Excise Department, and have to provide primary Excise Information
like ECC No., Date of Registration, Excise Range, Division and Commissionerate.
Selection of this option is most important because if selected NO for party account, then software will not display transactions with
this party in excise registers or returns.
Duties & Taxes Account
While creating an account under the group head of Duties & Taxes, one more option will be displayed in VAT / TDS option, which
will be EXCISE.
Kindly Select EXCISE here if creating Excise Duty related Accounts. This will help software to keep these Accounts separated from
VAT reports and displays its transactions in Excise Reports & Calculation.
Main Menu
Account Master
Select YES here if
Party is registered
with Central Excise
Department
Enter Excise Details
like ECC No., Range,
Division, etc.
Main Menu
Account Master
If Account is related
to Excise, then select
EXCISE in VAT / TDS
option
Select Appropriate
Excise Type for List
Main Menu
Purchase Entry & Its Effects in Reports
Excise Purchase Entry
In Purchase Entry there are different types of Nature of Purchase :
 Manufacturer : For Purchase from Manufacturer.
 Importer : For Purchase from Importer.
 First Stage Dealer : For Purchase from First Stage Dealer.
 Second Stage Dealer : For Purchase from Second Stage Dealer.
Purchase Entry will affect following reports :
 Annexure 18 : It is a report of Quantity receipt and used in production of Excisable goods of Principle input.
 Annexure 10 : It is a report of Credit documents with Duty amount.
 RG 23A Part I : It is a report of Quantity of principle inputs/Capital goods products on which CENVAT credit is availed.
 RG 23A Part II : If is a report of Duty amount Credited, adjusted of principle inputs/capital goods.
 CENVAT Credit Register : It displays CENVAT Credit availed in purchase entry.
Main Menu
Purchase Entry & Its Effects
To Enter Purchase Invoice, Select
Excise -> Purchase Entry ->
Purchase Invoice
Main Menu
Purchase Entry & Its Effects
Click on ADD Button
or press INSERT Key
to Add New Purchase
Invoice
Main Menu
Purchase Entry & Its Effects
There are 4 Options in Type. Select
Supplier Type. This is useful to
calculate Stock Value & Excise
Amount Accounting Effect
Main Menu
Purchase Entry & Its Effects
If we Select First Stage Dealer / Second Stage Dealer / Importer ,
then Excise Amount will not be added in Bill Amount. But we have to
take Credit of this Passed Excise Duty, So Software will deduct Excise
Amount from Basic Amount and that amount will affect Purchase
Account and Excise Amount will Affect Excise Account.
And in Stock also it will take (Basic Amount – Excise Amount) that is,
it will display stock @ rate of 83.52
Main Menu
Purchase Entry & Its Effects
Here we can see effect of Party Account (Entire
Bill Amount of Rs. 10000)
Excise Duty’s Account gets affected
with Excise Duty, E. Cess and S.E.
Cess Amounts
Purchase Account get Affected with Basic
Amount Minus Excise Duty Amount.
Stock will be calculated on this Amount.
Main Menu
Purchase Entry & Its Effects
We can see here that stock has been calculated on
Amount which affects Purchase Account
Main Menu
Purchase Entry & Its Effects
Change Type to
Manufacturer
If we select Manufacturer in “Type”, then Excise
Amount will be added in Bill Amount
Stock will be calculated on Basic Amount of 10000
Let’s see Account Effect and Stock Valuation
Main Menu
Purchase Entry & Its Effects
Here we can see effect of Party Account (Entire
Bill Amount of Rs. 11648)
Excise Duty’s Account gets affected with
Excise Duty, E. Cess and S.E. Cess Amounts
Purchase Account get Affected with Basic
Amount Minus Excise Duty Amount.
Stock will be calculated on this Amount.
Main Menu
Purchase Entry & Its Effects
We can see here that stock has been calculated on
Amount which affects Purchase Account
Main Menu
Purchase Entry & Its Effects
Excise Purchase Invoice Entry
will Affect Following Registers :
1.
5.
Annexure – 18 (Form IV)
2. Annexure – 10
3. R.G. 23A Part – I
4. R.G. 23A Part – II
CENVAT Credit Registers
Let’s See it Step by Step
Main Menu
Purchase Entry & Its Effects
Here we can see effect in
Annexure – 18 (Form – IV)
This Report is available with Grouping on
Product / Group / Category / CETSH No.
Click the Given Toggle Button to change
Grouping
Main Menu
Purchase Entry & Its Effects
Here we can see effect in
Annexure – 10
Main Menu
Purchase Entry & Its Effects
Here we can see effect in
R.G. 23A Part - I
This Report is shown separately for Principle
Inputs and Capital Goods.
Here is the Toggle Button to switch between
Principle Inputs and Capital Goods.
Main Menu
This Report is available with Grouping on
Product / Group / Category / CETSH No.
Click the Given Toggle Button to change
Grouping
Purchase Entry & Its Effects
Here we can see effect in
R.G. 23A Part - II
This Report is shown separately for Principle
Inputs and Capital Goods.
Here is the Toggle Button to switch between
Principle Inputs and Capital Goods.
Main Menu
Purchase Entry & Its Effects
Here we can see effect in
CENVAT Credit Register
Main Menu
Sales Entry Setup
Sales Invoice Types
This is most important step to get proper reports.
Some of the Registers & Returns show the figures
according to the selected Invoice Type at the time of Entering Excise Sales Invoice.
Main Menu
Sales Entry Setup
Click on
Setup -> Sales Setup -> Invoice Type
To open Sales Invoice Type Creation
Screen
Main Menu
Sales Entry Setup
Click on YES to
Proceed
Main Menu
Sales Entry Setup
Click on ADD Button to Create
New Invoice Type
Main Menu
Sales Entry Setup
Type “Domestic Sales” in
Invoice Type Name
Select “No” in
Capital Goods
Select “VAT” / “CST” / “CST
Other” as per Requirement
Select “Yes” in
Excise Option
Select Appropriate Excise Type
Domestic – For Sales in India Only
Main Menu
Sales Entry Setup
Type “Exempt” in Invoice Type
Name
Select “No” in
Capital Goods
Select “VAT” / “CST” / “CST
Other” as per Requirement
Select “Yes” in
Excise Option
Select Appropriate Excise Type
Exempt – For Exemption Units
Main Menu
Sales Entry Setup
Type “Export” in Invoice Type
Name
Select “No” in
Capital Goods
Select “Yes” in
Excise Option
Select “VAT” / “CST” / “CST
Other” as per Requirement
Select Appropriate Excise Type
Export
Main Menu
Select Appropriate
Export Type
Sales Entry Setup
Type “Export Chargeable” in
Invoice Type Name
Select “No” in
Capital Goods
Select “Yes” in
Excise Option
Select “VAT” / “CST” / “CST
Other” as per Requirement
Select Appropriate Excise Type
Export Chargeable
Main Menu
Sales Entry Setup
Type “Capital Goods R.A.S.” in
Invoice Type Name
Select “No” in
Capital Goods
Select “Yes” in
Excise Option
Select “VAT” / “CST” / “CST
Other” as per Requirement
Select Appropriate Excise Type
Removal As Such
Main Menu
Sales Entry Setup
Type “Special Rate” in Invoice
Type Name
Select “No” in
Capital Goods
Select “Yes” in
Excise Option
Select “VAT” / “CST” / “CST
Other” as per Requirement
Select Appropriate Excise Type
Special Rate
Main Menu
Sales Entry Setup
Type “Goods Removed
AsSuch” in Invoice Type
Name
Select “No” in
Capital Goods
Select “Yes” in
Excise Option
Select “VAT” / “CST” / “CST
Other” as per Requirement
Select Appropriate Excise Type
Removal As Such
Main Menu
Sales Entry Setup
Click on Close Button
or Press Esc
to Save & Exit
Main Menu
Sales Entry Setup
Click on YES to
Save & Exit
Main Menu
Sales Entry Setup
Click on
Setup -> Sales Setup -> Expense Details
To open Expense Details Creation
Screen
Main Menu
Sales Entry Setup
Select YES to proceed
Main Menu
Sales Entry Setup
Click on ADD Button to Create
New Expense Detail
Main Menu
Sales Entry Setup
Type “B.E.D.” in Expense
Detail Name
Select “Basic
Excise Duty” in
Duty Type
Select YES in
Account Effect
Select Cumulative in
Calculation Type
Main Menu
Select “Excise” in
Type
Click on OK
to Save
Sales Entry Setup
Type “Edu. Cess.” in Expense
Detail Name
Select “Education
Cess” in Duty Type
Select YES in
Account Effect
Select Fixed in
Calculation Type
Main Menu
Select “Excise” in
Type
Click on OK
to Save
Sales Entry Setup
Type “S. Edu. Cess.” in
Expense Detail Name
Select YES in
Account Effect
Select “Excise” in
Type
Select “Secondary
Education Cess” in
Duty Type
Click on OK
to Save
Main Menu
Sales Entry Setup
After Creating excise expense Details,
Please create VAT & Other Required
Expense Details as per your Requirement
Main Menu
Sales Entry Setup
Click on Close Button
or Press Esc
to Save & Exit
Main Menu
Sales Entry Setup
Click on YES to
Save & Exit
Main Menu
Purchase Entry Setup
Purchase Invoice Types
This is most important step to get proper reports.
Some of the Registers & Returns show the figures
according to the selected Invoice Type at the time of Entering Excise Purchase Invoice.
Main Menu
Purchase Entry Setup
Click on
Setup -> Purchase Setup -> Invoice Type
To open Invoice Type Creation Screen
Main Menu
Purchase Entry Setup
Click on YES to
Proceed
Main Menu
Purchase Entry Setup
Click on ADD Button to
Create New Invoice
Type
Main Menu
Purchase Entry Setup
Type “Excise” in Invoice
Type Name
Select “No” in
Capital Goods
Select “YES” in
Excise Option
Select “VAT” or “CST” or
“CST Other as per
requirement
Click on OK
to Save
Main Menu
Purchase Entry Setup
Type “Excise(Capital Good)”
in Invoice Type Name
Select “Yes” in
Capital Goods
Select “VAT” or “CST” or
“CST Other as per
requirement
Select “YES” in
Excise Option
Click on OK
to Save
Main Menu
Purchase Entry Setup
Click on Close Button
or Press Esc
to Save & Exit
Main Menu
Purchase Entry Setup
Click on YES to
Save & Exit
Main Menu
Purchase Entry Setup
Click on
Setup -> Purchase Setup -> Expense Detail
To open Invoice Type Creation Screen
Main Menu
Purchase Entry Setup
Click on YES to
Proceed
Main Menu
Purchase Entry Setup
Click on ADD to Create
New Expense Detail
Main Menu
Purchase Entry Setup
Type “Basic Excise Duty” in
Expense Detail Name
Select “Excise” in
Type
Select “Basic Excise
Duty” in Duty Type
Select YES in
Account Effect
Select Cumulative in
Calculation Type
Main Menu
Click on OK
to Save
Purchase Entry Setup
Type “Edu. Cess.” in Expense
Detail Name
Select “Excise” in
Type
Select “Education
Cess” in Duty Type
Select YES in
Account Effect
Select Fixed in
Calculation Type
Main Menu
Click on OK
to Save
Purchase Entry Setup
Type “S. Edu. Cess.” in
Expense Detail Name
Select “Excise” in
Type
Select YES in
Account Effect
Select “Secondary
Education Cess” in
Duty Type
Click on OK
to Save
Main Menu
Purchase Entry Setup
After Creating excise expense Details,
Please create VAT & Other Required
Expense Details as per your Requirement
Main Menu
Purchase Entry Setup
Click on Close Button
or Press Esc
to Save & Exit
Main Menu
Purchase Entry Setup
Click on YES to
Save & Exit
Main Menu
Product Master
Changes related to Excise in Product
Master
There are certain changes in Product Master also
 We have to provide information whether this product is excisable or not.
 If Product is Excisable, we have to provide information about excise duty rate with effective date
To make work easier, Miracle provides some features to copy excise duty rate and effective date details from another product or
to multiple products at the same time.
Let’s see the changes.
Main Menu
Product Master
Select YES if
Product you are
adding is
Excisable
Main Menu
Product Master
Select the Commodity under which the Product will
be placed
Click Delete to remove
a commodity
Click Add for adding
new Commodity
Main Menu
Click Edit for making
changes in a
Commodity
Product Master
Here it shows the details of the selected Commodity
Main Menu
Product Master
Shortcut to Enter Duty in Multiple Product at Same
Time
Giving Excise Duty Rate information with effective date is lengthy, time consuming and repetitive work. We can reduce our work
by two methods :
 Provide Excise Duty Rate information while creating new product by selecting another product with same Excise Duty Rate
Click Here to View Demo
 Create products without giving such kind of information, create only 1 product with Excise Duty Rate information after creating
all products, we can copy Excise Duty Rate Information to all other products / product groups / product categories easily.
Click Here to View Demo
Main Menu
Product Master
Select the commodity from
which the product excise
details will be taken
Main Menu
Product Master
Press Enter on Product
from which you want to
take Excise Duty Rate
Main Menu
Product Master
Here it shows the excise duties
that will be applied to the
product
Main Menu
Product Master
1) Select the product from
Locate
Cursor on Product
which the duties needs
to be
whose
Excise
Duty Rate you
copied
want to Assign to other
Products.
3) Here it shows the excise
duties of the selected product
Press F5 or click on the
Detail Button given to view
Excise Duty Rate Details.
2 Click Detail or Press F6
to see excise detail
Main Menu
Product Master
Take Selected
here
Press F2 or click
on given Button
Main Menu
Product Master
Here select the product to which the excise
duties are to be copied
Main Menu
Product Master
Confirm here the copy operation and click on
Yes OR press Enter to copy the excise details
Main Menu
Product Master
4
Different Methods for valuation of Excise Duty
Value of the excisable goods has to be necessarily determined to levy the duty on the goods. Under the Central Excise
Act, 1944, the following methods of valuation of goods are considered for the assessment of Duty :
1
Ad Volarem / Transaction Value
2
Ad Quantum / Quantity, Measurement or Volume Based
3
MRP Based
Product Master
4
Different Methods for valuation of Excise Duty
1
Ad Volarem / Transaction Value
Transaction Value includes receipts / recoveries or charges incurred or expenses provided for in connection with the
manufacturing, marketing, selling of the excisable goods to be part of the price payable for the goods sold.
For applicability of transaction value (ad valorem) in a given case, for assessment purposes, the following requirements
should be satisfied :
 The goods are sold by an assessee for delivery at the time and place of removal
The term Place of Removal includes factory, warehouse, depot or premises of a consignment agent,
 The assessee and the buyer of the goods are not related
 The price is the sole consideration for the sale
If any one of the above requirements is not satisfied, then the transaction value shall not be the assessable value and
value in such case has to be arrived at under the valuation rule.
Product Master
4
Different Methods for valuation of Excise Duty
2
Ad Quantum / Quantity, Measurement or Volume Based
Central Excise has fixed Rate of Duty for few selected items like Water, Sugar, Cigarette, etc. Duty is payable on basis of
Length for Cigarette, Kg for Sugar and Litre for Water
Product Master
4
Different Methods for valuation of Excise Duty
3
MRP Based
In simple words, for the MRP based products like Toothpaste, Tooth Powder, Detergent Powder or any other product.
Here, we take Toothpaste as example; MRP printed on the package is not the sale price from Manufacturer, Distributor,
Dealer or Reseller. In such cases assessee have to deduct abatement from MRP and it will be the assessable value for
such goods.
Following factors needs to be considered while determining the value on the basis of Maximum Retail Sale Price.
 The goods should be covered under provisions of Standards of Weight & Measures Act.
 Central Government can permit reasonable abatement (deductions) from the ’Retail Sale Price’. While allowing
such abatment, Central Governement shall take into account Excise Duty, Sales Tax and other Taxes Payable on
the goods.
 If more than one ’Retail Sale Price’ is printed on the same packing, the maximum of such retail price will be
considered.
 The ’Retail Sale Price’ should be the maximum price at which excisable goods in packaged forms are sold to
ultimate consumer. It includes all taxes, freight, transport charges, commission payable to dealer and all charges
towards advertisement, delivery, packing, forwarding charges, etc.
 Central Government has to issue a notification in Office gazetter specifying the commodities for which the
provision is applicable and the abatements permissible.
Production / Captive Consumption Entry & Its Effects
Production Entry / Captive Consumption
After Creation of Purchase Invoices, next step is to enter Production Voucher.
There are two types of Production Entries for Excise purpose :
 Normal Production
This means simple production entry in which raw material will be issued and finished goods / semi-finished goods will be
produced (that is, received)
 Captive Consumption (Production Entry)
In this type of Entry, Semi-Finished Goods will be issued and final product (finished goods) will be received.
Click Here for more details on Captive Consumption.
Main Menu
Production / Captive Consumption Entry & Its Effects
Create Semi-Finished Product
Select Finished Goods in Product
Type
Main Menu
Production / Captive Consumption Entry & Its Effects
To Enter Production Voucher
Select
Transaction -> Production
Main Menu
Production / Captive Consumption Entry & Its Effects
Click on ADD Button or
press INSERT Key to Add
New Production Voucher
Main Menu
Production / Captive Consumption Entry & Its Effects
Issue Raw Materials and
produce Semi Finished Goods
This will be called as Normal
Production Entry
Main Menu
Production / Captive Consumption Entry & Its Effects
Normal Production Entry will Affect Following
Registers :
1. Daily Stock Account (RG – I)
2. Annexure – 18 (Form – IV)
3. R.G. 23A Part – 1
Let’s see it step by step
Main Menu
Production / Captive Consumption Entry & Its Effects
Normal Production Entry’s Principle Input
Entries will be shown in this column
This Report is available with Grouping
Product Name / Group / Category /
CETSH No.
Click given Toggle button to change
Grouping
Main Menu
Production / Captive Consumption Entry & Its Effects
Normal Production Entry’s Principle Input
Entries will be shown in this column
This Report is available with Grouping
Product Name / Group / Category /
CETSH No.
Click given Toggle button to change
Grouping
Main Menu
Production / Captive Consumption Entry & Its Effects
Normal Production Entry’s Principle Input
Details will be shown here
Main Menu
Production / Captive Consumption Entry & Its Effects
Here Issue Semi Finished Goods as
Raw Materials
That is, any Product in which we have
selected Excise Product Type “Finished
Goods”
This will be called as Captive
Consumption
Main Menu
Production / Captive Consumption Entry & Its Effects
Captive Consumption Entry will Affect only
Daily Stock Account (RG – I)
Main Menu
Production / Captive Consumption Entry & Its Effects
Captive Consumption Entry will
be shown here with the
Quantity
Main Menu
Production / Captive Consumption Entry & Its Effects
8
What is Captive Comsumption ?
In simple words we can define Captive Consumption as semi-finished goods.
Some Excisable units produce semi-finised goods / wastage which are useful to produce another finished product. In
such case consumption of semi-finished goods or wastage is called Captive Consumption in terms of Central Excise.
In terms of software operating, if we select Finished Product (defined while creating the product) as Raw-material in
production voucher, then it will be considered as Captive Consumption.
Sales Entry & Its Effects
Excise Sales Entry / Removal of Goods
After Creation of Production Vouchers, next step is to enter Sales Voucher / Removal of Goods
There are different types of Removal for Excise purpose :
 Domestic Sales : For sales in India in which duty will be collected at normal rate.
 Exempt : For sales in India with Duty @ 0%.
 Export : For Export sales, In this case duty will not be collected.
 Export (Chargeable) : Removal Type is Export though Duty will be collected.
 Special Rate : For Sales in India with collection of Duty @ Special Rate.
 Capital Goods Removal As Such : For Removal of Capital Goods As Such.
 Goods Removal As Such : For Removal of Raw Materials As Such.
Sales Entry affects following reports :
 Daily Stock Account (RG I) : It is a report of Stock of Finished Goods on daily basis with Opening and Closing stock.
 PLA Register : Personal Ledger Account(PLA) is account current through which duty is paid to government. PLA register is
credited when duty is liable to Pay and is debited when payment or adjustement is made.
Sales Entry (Removal of Goods) affects following reports :
 RG 23A Part I
 RG 23A Part II
Main Menu
Sales Entry & Its Effects
To Enter Excise Sales Invoice
Select
Excise -> Sale Entry -> Sales Invoice
Main Menu
Sales Entry & Its Effects
Click on ADD Button or Press
INSERT to Add New Excise
Sales Invoice
Main Menu
Sales Entry & Its Effects
Select Appropriate
Invoice Type
Give Necessary Information
Like Notification No., Prepare
Date & Time, Transport Name,
Vehicle No., etc.
Excise Duty Amount will be asked
based on Selected Invoice Type
and Duty Rate will be taken from
Product Master
Main Menu
Sales Entry & Its Effects
Excise Sales Invoice Entry will Affect following
Registers :
1.
Daily Stock Account (RG – I)
2. PLA Register
Let’s see it step by step
Main Menu
Sales Entry & Its Effects
Excise Sales Entry will be shown
in Different Column as per
selected Invoice Type
Main Menu
Sales Entry & Its Effects
Excise Sales Entry will be
shown in PLA Register
Main Menu
Sales Entry & Its Effects
Select Goods
Removed As Such
in Invoice Type
Give Necessary Information
Like Notification No., Prepare
Date & Time, Transport Name,
Vehicle No., etc.
Excise Duty Amount will be asked
based on Selected Invoice Type
and Duty Rate will be taken from
Product Master
Main Menu
Sales Entry & Its Effects
Goods Removed As Such will Affect
following Registers :
1.
2.
R.G. 23A Part - 1
R.G. 23A Part – 2
Let’s see it step by step
Main Menu
Sales Entry & Its Effects
Goods Removed as Such Entry will be
shown in “Issued for Removal
AsSuch” column in R.G. 23A Part - 1
Main Menu
Sales Entry & Its Effects
Goods Removal as Such Entry
will be shown for Debit side
with negative values in R.G.
23A Part - 2
Main Menu
Excise Payment Entry & Excise Returns
Excise Payment Entry & Excise Returns
After Creation of Sales Invoice, next step is to make Excise Payment & Excise Returns at the end of each month.
This part will cover :
 CENVAT Adjustment Entry (Take Credit of Excise Duty)
 Excise Duty Payment Entry
 Excise Calculation Report
 Excise Returns for Printing
 Excise E - Return
Main Menu
Excise Payment Entry & Excise Returns
For Excise Calculation Report
Select
Excise -> Excise Report
Main Menu
Excise Payment Entry & Excise Returns
First of all we have to avail
CENVAT Credit
For that we have to enter
CENVAT Adjustment Voucher
Main Menu
Excise Payment Entry & Excise Returns
For CENVAT Adjustment
Select
Excise -> CENVAT Adjustment
Main Menu
Excise Payment Entry & Excise Returns
Select Appropriate Type :
CENVAT Adjustment : To avail credit on goods
Service Tax Credit : To avail credit on Service Tax
CENVAT Credit Opening : For the first time users for
opening balance
Main Menu
Excise Payment Entry & Excise Returns
Select appropriate value for Option
Credit Utilized for
This is useful to show figure of taken
credit in proper column of Excise
Return Form
Main Menu
Excise Payment Entry & Excise Returns
Enter From Date and To Date
for which you want to Utilize
CENVAT Credit
Main Menu
Excise Payment Entry & Excise Returns
Basic Excise Duty, Edu. Cess, Sec.
Edu. Cess. Accounts will be
Credited
And PLA Account will be Debited
with Total Amount
Main Menu
Excise Payment Entry & Excise Returns
CENVAT Credit Utilized by
CENVAT Adjustment Voucher
will be shown here
Total Duty Payable will be
shown here
To Pay Duty we have to enter
Excise Payment Voucher
Main Menu
Excise Payment Entry & Excise Returns
To Enter Excise Payment Entry
Select
Excise -> Payment
Main Menu
Excise Payment Entry & Excise Returns
Click ADD Button or Press
INSERT to Add New Excise
Payment
Main Menu
Excise Payment Entry & Excise Returns
Select Bank Payment / Cash Payment
Enter Other Details Like From & To Date
(This is most Important), Challan No.& Date,
Bank Name, BSR Code
Select appropriate accounts like,
Credit : Bank / Cash Account with Credit Amount
Debit : PLA Account but make Different
Debit Entry for each Excise Type like Basic Excise
Duty, Edu. Cess., Sec. Edu. Cess., etc.
This payment entry will affect :
PLA Register
Excise Report
Main Menu
Excise Payment Entry & Excise Returns
Excise Payment Entry will be
shown in PLA Register
Main Menu
Excise Payment Entry & Excise Returns
Duty Paid will be shown here
Main Menu
Excise Payment Entry & Excise Returns
For Excise Return Form Printing
Select
Excise -> Excise Form
Main Menu
Excise Payment Entry & Excise Returns
Select Appropriate Quarter
to Generate Report
Select Appropriate Form
to Print
Click OK To Generate
Main Menu
Excise Payment Entry & Excise Returns
Provide required information
for Section 3 & 7
And Section 9
Click on Save & Print to
Print Form
Main Menu
Excise Payment Entry & Excise Returns
For Excise E-Return Form
Select
Excise -> Excise E-Return
Main Menu
Excise Payment Entry & Excise Returns
Provide Required
information
Generated File will be
stored at given path
Click here to generate File.
Software will validate it first.
If any error occurs it will give
notification so that our e-filing work
will be easy.
Main Menu
Click here to Change Path
Sales Return & Its Effects
Excise Sales Return
Sales Return Entry will not affect following Reports :
 Daily Stock Account (RG – I)
Sales Invoice Entry, Production Entry, Stock Journal Entry from Sales Return Entry will also not affect above Reports.
Main Menu
Sales Return & Its Effects
To Enter Excise Sales Return
Select
Excise -> Sale Entry -> Sales Return
Main Menu
Sales Return and its effect in D3 - Register
Select Yes here for selecting goods from
Sales Return for Sales.
Main Menu
Sales Return and its effect in D3 - Register
Sales of 100 units done from production of
100 units.
Main Menu
Sales Return and its effect in D3 - Register
From the Sales done, 70 units are taken as
Sales Return
Main Menu
Sales Return and its effect in D3 - Register
In D3-Register, 70 units of Sales Return are
shown here.
Main Menu
Sales Return and its effect in D3 - Register
Click here after entering the quantity, to
select the transaction
Here it shows the entry of 50 units of sales.
After selecting the transaction, Press F6 Or
Click From Return to select the 50 units of
Goods sold from the Sales Return units
Main Menu
Sales Return and its effect in D3 - Register
On Pressing F6 or Clicking From Return
button, it shows the units of Sales Return.
Press Enter to select the sales units from
Sales Return
Main Menu
Sales Return and its effect in D3 - Register
This sign (*) shows that the sales is done
from the units received as Sales Return
Note: The Sales Return can be used as Raw Material in Production.
Use the same From Return button to select the units from Sales
Return for Production
Main Menu
Sales Return and its effect in D3 - Register
Here this column shows the Issue Qty i.e.
the Sales done.
Main Menu
Here it shows the Balance units after the
sales done
Commodity Master
Click here to open
Commodity Master
Main Menu
Commodity Master
To add a Commodity click
Add or Press Insert
Main Menu
Commodity Master
Give the Description i.e. the
Name of the Commodity
Full Form of CETSH No. is
“Central Excise Tariff & Sub Heading No.”
It is also known as Tariff No.
All the available Tariff No. List is given here.
Please select appropriate CETSH No. from List.
Main Menu
Commodity Master
Select appropriate Product Type
This Product Type is important for reporting.
Principle Input : For Raw Material
Finished Goods : For Final Product
Capital Goods : If Item being created is Capital Good
Other : Any Other Product
Main Menu
Commodity Master
Select the Unit Name here
Main Menu
Commodity Master
Please Select appropriate
Valuation Method from list.
For more Details Click Here
Main Menu
Commodity Master
Select whether the
Commodity is Petrol Product
or not.
Main Menu
Commodity Master
Select the Duty Type associated
with the Commodity and then
click Ok
Give Excise Percentage Detail with Applicable Date
Applicable Date is important when Rate of Duty
changes.
In this case we don’t require to make changes in the
software, but by giving the date here we can take the
effect in sale / purchase entries.
Main Menu
The Way to Success …
Thank you for using this self running demo.
For any suggestions / comments, Please write to us at [email protected]
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