INTRODUCTION

TO
EXCISE
Sales cycle

Purchase Order
↓
Sales Order
↓
Delivery
↓
Billing
 Excise duty
An excise or excise tax
(sometimes called a duty of
excise) may be defined broadly
as an inland tax paid to
Government on the production
for sale; of a specific good,
within the country
In India Excise duty consist of

Basic Excise Duty

+
Edu CESS
+
Secondary Edu CESS
 G.A.R.- 7

Government Accounting Rules -7

Proforma for Central Excise Tax
Payments.

Formally it was TR-6 form

Tressury Receipt - 6
 CENVAT

Central Value Added Tax

Which is an input duty relief scheme inorder
to prevent cascading effect of duty on final
products.

It ensure duty paid on input stage will be

offset against duty payable at the final
product stage.
 INPUTS

● CAPITAL GOODS ● RAW MATERIALS

50% of the duty paid can
be availed in that fiscal
year and balance can be
availed durning
subsequent years
100 % of the duty paid can
be availed in that
particular month itself
 PLA Register

Personal Ledger Account (PLA) is an account

current through which Assessee pays the
Duty to the Government. The PLA register is
credited when the duty is liable to pay and
when the Duty is discharged (by CENVAT
Credit /Payment) the PLA register will be
debited. The Duty Payable if any will be
displayed as Balance.
 RG 23 A
(includes details of Raw materials)

● RG23 A Part 1: ● RG23 A Part II :

The Purchase and Total Excise amount

Issues Quantity of an and Cenvat
Excisable Raw Credit/Debit amounts
Material is accounted are accounted in this
in this register. register.
 RG23 A Part 1 contains...
● Opening stock
● Quantity receiced
● Quantity Issued
● Job work(quantity send out for repair/service)
● Quantity on processing
 RG23 A Part 2 contains...
● Amount of excise duty on the materials, and
how much you have transferred to the
CENVAT accounts,
● seperately for BED, E cess, SE cess
 RG 23 C
(includes details of Capital Goods)

RG23C Part 1 & 2: This is same

as RG23A part 1 & 2 but here,
the Capital goods Items and
Fixed assets and their CENVAT
amounts are accounted.
 RG 23 D

This is applicable when a manufacturer

selling their product through a depot

There are 2 parts in with respect to Depot

1. Purchase part- Mother invoice
2. Sales part – Depot Invoice
 The mother invoice and depot invoice is co-
relating using a folio no: ie the per unit rate of
duty against certain folio no: is same as in
mother invoice and in depo invoice
 Form A

Perfoma of returns given to Govt in quarterly

 RG 1
RG1 is the register as prescribed the excise
dept. for daily entry of production and
despatches of finished products

It includes
●Opening balance
●Receipts - Production & other source

●Domestic sales

●Exports - Under LUT, Bond, Rebate

●Closing balance
 CENVAT Register

Register of Cenvat credits and utilizations

There are 3 types, they are for

Inputs – details of Rawmaterials

Capital Goods - details of CG
Abstract – Both
THANK YOU