Facility to Generate Supplementary Excise Invoice for Price or Duty Rate Differences

There are situations that require a manufacturer to issue an Excise Invoice in addition to the invoice issued earlier. For example, an Excise Invoice is issued on 1-6-2011 for 100 qty and the rate is Rs.100/- per unit. So the invoice value will be Rs.10000/- plus excise duties. But later, because of rate revision, the buyer may agree to a higher rate i.e. Rs.110/- per unit, the manufacturer will issue another invoice for the differential amount without affecting the quantity sold. This invoice will carry Rs.1000/- i.e. (100qty x Rs.10/-) plus excise duty. This invoice is known as ‘Supplementary Invoice’.

Under excise, since it is not allowed to alter the contents of the Original Invoice (Invoice already issued) it is necessary to mention the Original Invoice number and other details on the Supplementary Invoice. Based on this invoice the buyer can avail of CENVAT credit.

Other situations which require supplementary invoice are as under:

  • Initially, a provisional assessment is done and later the duty values are changed due to the final assessment.
  • Change in the rate of Excise Duty.
ALTERNATE SOLUTION/WORKAROUND

Supplementary Invoices can be recorded using the Excise Sales voucher by selecting ‘Nature of Removal’ as ‘Special Rate’ without specifying a quantity. The Original Invoice Number can be mentioned in the Other Reference(s) field of the Party’s Supplementary Details. The Duties charged in the Original Invoice need to be specified manually in the Supplementary Invoice.

RESOLUTION TIMELINE

Resolution for the above-stated problem will be provided in Tally.ERP 9 Series B JAS (July, August, September) Release.

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