ID #1560

Is it possible to apply Excise Duty on my ready-made garments through RanceLab® FusionRetail™ 6?

The tax structure is as given below...

  • Excise Duty - 10%
  • Edu Cess - 2%
  • Higher Cess - 1%
  • Output Vat - 4%

Answer:

An excise or excise tax (sometimes called a duty of excise special tax) is commonly understood to refer to an inland tax on the sale of specific goods produced for sale, or sold, within a country.

An excise is considered an indirect tax, meaning that the producer or seller who pays the tax to the government is expected to try to recover the tax by raising the price paid by the buyer (that is, to shift or pass on the tax). Excises are typically imposed in addition to another indirect tax such as a sales tax or VAT.

  • Go to Main Menu>Master Data management> Accounts> Tax Master (M>A>T)
  • Enter the name of the tax as ‘Tax + Excise Duty’
  • Set “Include in Rate = Yes” (or you can also set it to ‘No’ as per your requirement)
  • Go to ‘Account’ field
  • Press ‘Ctrl + N’ to create a new tax account
  • Type ‘Excise Duty’
  • Save
  • Repeat step 6 to 7 to create more accounts (as ‘Edu Cess’, ‘Higher Cess’, ‘Output Vat’)
  • Press ‘Esc’ button and come to Tax Master Creation screen.
  • Press Alt + L in Account field
  • Select ‘Excise Duty’ from the list
  • Set ‘Tax%=10’
  • Repeat step 10 to 12 for ‘Edu Cess’, ‘Higher Cess’, ‘Output Vat’ and enter their respective values.
  • Save the tax master

Now your tax master is ready with Excise Duty. You can use this by attaching with the product master or by directly applying on the transaction screen.

For more details please visit:

Tags: Master, Tax Master

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