What is excise duty?
what is accounting treatment?
what item should be considered in excise duty?
nidhi jain (student) (177 Points)
09 July 2008What is excise duty?
what is accounting treatment?
what item should be considered in excise duty?
CA Anand Sarda
(Working)
(1580 Points)
Replied 10 July 2008
U might be knowing there are thousands of manufacturers in the country.
who manufactures and as well there are traders who only purchases and sells the goods.
So these manufacturers has to pay excise duty on the goods manufactured by them to the govt.
Excise Duty will be collected from the customers to whom such goods are sold by charging @ 14% on the value of the goods.
Accounting Entry will be
Bank A/c.......... 1140
to sales A/c 1000
to Excise Duty A/c. 140
(Being SAles made)
Then while making payment to Govt
Excise Duty A/c. Dr 140
to Bank A/c 140
CA. DHEERAJ KUMAR LEELA
(CA IN PRACTICE)
(89 Points)
Replied 10 July 2008
it is a duty which is leaved on the goods which is manufatured in india.
CA. DHEERAJ KUMAR LEELA
(CA IN PRACTICE)
(89 Points)
Replied 10 July 2008
it is leavd by central government.
S.P.Mahanta
(Internal Auditor)
(647 Points)
Replied 10 July 2008
Excise duty is duty on production and such duty is payable by the Manufacturer on purchase of Inputs, Capital goods and input services and also on sale of finished products/goods.
The Accounting entries shall be as follows.
On Purchase.
Purchase A/c....... Dr ( Name/Type of Material purchased)
Excise Duty A/c.....Dr ( 14%of purchase value)
Ecess on Eduty.....Dr ( 2% of E duty)
S&HE Cess on Eduty.....Dr ( 1% of Eduty)
Sundry Creditors A/c
nidhi jain
(student)
(177 Points)
Replied 11 July 2008
it means that there is also a statment of excise duty payment made in which we calculate input excise tax and out put excise tax. and if any difference comes that amount will be refund or payable to central govt.
1. at quartely statment prepared or yearly.
2. For business Research and development and financial consultancy company at wht rate should be charged.
| Originally posted by :nidhi jain | ||
| " | it means that there is also a statment of excise duty payment made in which we calculate input excise tax and out put excise tax. and if any difference comes that amount will be refund or payable to central govt. 1. at quartely statment prepared or yearly. 2. For business Reearch and development and financial consultancy company at wht rate should be charged. |
" |
How to colculate monthly liability to excise department ?
| Originally posted by :nidhi jain | ||
| " | What is excise duty? what is accounting treatment? what item should be considered in excise duty? |
" |
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