E-Return

The Central Board of Excise and Customs has issued a notification making e-filing mandatory for assessees with effect form 1-4-2010. As per the Notification, all the registered Excise Dealers would now be required to file quarterly returns as prescribed under the provision to sub-rule (8) of rule 9 of the CENVAT Credit Rules 2004, electronically irrespective of the amount of CENVAT credit taken by them or passed on by them in a year.

To assist and manage e-filing, Central Board of Excise & Customs has set up an e-governance portal – Automation of Central Excise and Service Tax (ACES) [http://aces.gov.in]

E-Filling of Dealer Return

Currently, ACES application allows filing Quarterly Return for the Registered Dealers online who are accessing the ACES site through PCs / Internet Browsers.

To make E-filing easy for the Excise Dealers to file returns in Automation Of Central Excise And Service Tax (ACES), department has given the options of off line filing using Excel utility or XML schema.

Note: XML Schema is a language for describing the structure and constraining the contents of XML documents

Assessees who are not maintaining the records in computerised system, can down load the Excel utility and enter the details manually, validate and upload the Excel utility.

Assesses who have computerized systems in place and can generate their return from their existing application department has given the process to prepare return in XML format, validate and upload the Dealer return. Benefits of using the XML schema is that if user is having huge data to upload instead of entering manually they can use their application for generating XML schema.

Generating E-Returns fromTally.ERP9

Meeting all the requirements of E-Returns, Tally.ERP 9 now provides the option to generate the quarterly return with a click of a button.

For generating E-Returns from Tally.ERP9, let us take the example of ABC Company which is registered as per Excise Rules and engaged in Trading.

To generate E-Returns follow the given Steps

Under Central Excise Tariff Act, for every excise stock item Unit of Quantity is defined.

Example: Unit of Quantity is U for Numbers.

The act also makes it clear that all the reports relating to stock items are required to be indicated with the relevant Unit of Quantity as specified under Central Excise Tariff Act. It even applies to E-returns. In Tally.ERP 9 Unit of Quantity is termed as Reporting UOM.

In case, the users are not using the Defined Unit of Quantity as Unit of Measurement (base unit) for the stock items then it is must to assign the appropriate Unit of Quantity to generate E-Returns. If there are any difference in the Unit of Quantity defined in the item master then the application will not allow to generate e-returns till such discrepancies are resolved.

Note: In Tally.ERP 9, while creating the stock item application gives the option to define the Base Unit and Reporting UOM.

 

Currently, for the stock items created under Dealer Unit the base unit defined will be considered as the Reporting UOM and system does not allow to alter the Reporting UOM.

 

In case the base unit defined is different from standard Unit of Quantity user has to select the correct Reporting UOM for the Stock Item.

Following are the Unit of Quantity defined under Central Excise Tariff Act

Unit of Quantity

Description

1KKWH

 1000 Kilowatt Hours

C/K

Carats

CM

Centimetre

CM3

Cubic Centimetre

G

Grams

GI F/S

Gram of Fissile Isotopes

KG

Kilograms

KL

Kilolitre

L

Litre

M

Metre

M2

Square Metre

M3

Cubic Metre

MM

Millimetre

MT

Metric Tonnes

PA

Number of Pairs

Q

 Quintal

T

Ton

TU

Thousand in Nos

U

Numbers

 

Step 1: Update Reporting UOM to Stock Items

First step in generating Excise returns is to update (assign) the stock items with appropriate reporting UOM where the base unit defined for the stock items is not the Unit of Quantity defined under Central Excise Tariff Act.

Reporting UOM can be updated to stock items in 2 ways.

1. Update Single Stock Item

In this method Reporting UOM is updated one stock item at a time by identifying the stock items which have the base unit which is not the Unit of Quantity as defined under Central Excise Tariff Act.

To understand how to update single stock item, let us take the example of stock item which have the base unit as Box. In ABC Company the stock items to which the Unit of measurement - Box is used, the applicable Unit of Quantity is U.

To update the stock item,

Go to Gateway of Tally > Inventory info. > Stock Items > Alter (Single Stock Item) > select 1000MFD/50VDC PG6D from the List of Stock Items

To define the Reporting UOM

Note: Units list displays the details of Base Units, Excise UOM and Description.

 

The Base Units created by the users will also be available under the Reporting UOM list without any description. The Base Units once replaced with the actual Reporting UOM will disappear from the list and will not be available for selection.

 

Reporting UOM defined for the stock item will be considered as Unit of Quantity only for generating E-Returns.

 

Where as Base Unit will be considered for generating all the Excise Reports.

2. Update Multiple Stock Items

In case of companies which have many stock items for which the Reporting UOM is different than the base unit defined and doesn't want to define the Reporting UOM to each item then user can use multi stock Reporting UOM alteration option - Update Reporting UOM available in Tally.ERP 9

To update Reporting UOM to multiple stock items

Go to Gateway of Tally > Inventory Info. > Update Excise Info. > Reporting UOM

Tally.ERP 9 allows to update Reporting UOM to stock items in three ways

i. Excise Unit - wise

ii. Tariff - wise

iii. Base Units - wise

i. Excise Unit - wise

Excise Unit-wise update allows to define the Reporting UOM to all the excise Stock items of the Excise Unit.

To update reporting UOM, In Select Excise Unit screen

Note: Here Name of Tariff and Name of Base Units are set Any, because ABC Company wants to view all the excise stock items of the excise unit.

The Update Reporting UOM screen is displayed as shown:

Observe, the Update Reporting UOM screen displays all the stock items created under the Excise Unit - ABC Company.

In real business scenario an excise dealer may be dealing in excise stock items having same reporting UOM or different reporting UOM.

Example: For all the excise Items of ABC company Unit of Quantity is U (numbers) then select No. In Reporting UOM field and press Ctrl + A (short cut key to save the changes) or press Enter till you reach Accept Yes or No option.

On accepting Update Reporting UOM screen, The unit of measurement No. (U) will be updated as the Reporting UOM to all the Excise Items.

To define the Reporting UOM to Stock item press Enter cursor will move to Reporting UOM column, select the stock item and define the Reporting UOM.

Similarly, user can select other stock items to define the Reporting UOM. After alteration of Reporting UOM press Ctrl + A (short cut key to save the changes) or press Enter till you reach Accept Yes or No option to save the changes.

ii. Tariff - wise

Tariff - wise update allows to define the reporting UOM to the excise Stock items grouped under the specific Tariff Classification.

To update reporting UOM, In Select Excise Unit screen

In Update Reporting UOM screen, application displays only those stock items which are grouped under the Tariff classification for which the report is viewed.

Example: For all the excise Items grouped under the Tariff Classification - 84733099 Unit of Quantity is M (metre) then select Mtrs in Reporting UOM field and press Ctrl + A (short cut key to save the changes) or press Enter till you reach Accept Yes or No option.

To define the Reporting UOM to Stock item press Enter cursor will move to Reporting UOM column, select the stock item and define the Reporting UOM as explained earlier.

Press Ctrl + A (short cut key to save the changes) or press Enter till you reach Accept Yes or No option to save the changes.

Similarly, user can select to update Reporting UOM to stock items grouped under other Tariff Classifications.

iii. Base Unit-wise

Base Unit-wise update allows to define the reporting UOM to the excise Stock items grouped under the specific Base Unit.

To update reporting UOM, In Select Excise Unit screen

The Update Reporting UOM screen appears as shown

In Update Reporting UOM screen, application displays only those stock items with the base unit Mtrs.

Example: For all the excise Items with Base Unit Mtrs, Unit of Quantity is KG (kilogram) then select Kg in Reporting UOM field and press Ctrl + A (short cut key to save the changes) or press Enter till you reach Accept Yes or No option.

To define the Reporting UOM to Stock item press Enter cursor will move to Reporting UOM column, select the stock item and define the Reporting UOM.

Press Ctrl + A (short cut key to save the changes) or press Enter till you reach Accept Yes or No option to save the changes.

Similarly, user can select to update Reporting UOM to stock items with other Base Units.

Step 2: Generate E-Returns

After updating Reporting UOM to the stock items the next step is to generate E -Returns.

To generate E-Returns,

Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Dealer > E-Return > Press Enter to view Exporting Dealer E-Return screen

Exporting Dealer - E-Return screen appears as shown:

Press Backspace to provide Return's period, Place, Date of generating e-returns and other details

The E-Return Requirement has clearly indicated that the E-Return File Format should - 15 Digit ECC Number_ Month Date Year Hour Minutes Seconds AM/PM.xml

Example: ACCEP4589SXD001_10012010162655PM.xml

Note: Tally.ERP 9 allows the user to change the Output File Name while generating the e-return in XML format.

 

But to upload the E-Returns, assessee has to follow the file name structure as specified under E-Returns Requirement. If the File name structure is different then, the ACES application will not allow the Assessee to upload the Returns.

Note: From and To period, Place, Date and Remarks are Mandatory fields. If the Assessee generates the returns without or incomplete details, the e-return generated will show the errors for the missing details.

Note: Application will not display the Error Type - No/ Invalid Reporting UOM for Stock Items, if the user has already corrected all the Reporting UOM by following the Step 2: Update Reporting UOM to Stock Items (Single/Multiple stock item update).

By default, Validation option will be set to Yes. Press Enter to view the E-Return Validation Screen

E- Return Validation screen appears as shown

E- return Validation screen displays the Type of Error with the Error Count. To rectify the error, select the error type and press Enter.

1. Tariff/HSN Code Validation

Remark will be displayed for all those Tariff classification where the HSN Code is less/more than 8 digits. Correct the HSN code by specify the correct 8 digit code. Once the correction is made, application will not display the remarks.

Note: Tally.ERP 9 looks only for 8 digits/numbers and ignores the dot or space between the numbers.

2. Party Excise Registration (ECC) No. Validation

Excise Registration Number is a PAN based 15 digit alpha numeric Number.

Remark will be displayed for all those registration numbers which are more than 15 digits, contains special characters or space between the numbers. Once the correction is made, application will not display the Remarks.

Note: Tally.ERP 9 looks for length-15 digits/numbers and the Format of the Registration Number.

The completed Exporting Dealer E-Return screen is displayed as shown

Note: Tally.ERP 9 allows to configure the E-Returns. To configure press F12: Configure from Exporting Dealer E-Return screen to view Configuration screen.

 

Configuration screen displays 2 configuration option

 

* Show All Items: Set this option to Yes to view all stock items purchased under a invoice

* Show Excise Duty Amount Round Off: By default, this option will be set to Yes because, the dealer E-Return Requirement has clearly stated that all the duty amount has to rounded off to the nearest Rupee.

 

 

If the user generates E-Returns by setting the above option Show Excise Duty Amount Round Off to No, the ACES application will not allow the Assessee to upload the Returns.

The exported file will be placed in the Tally.ERP 9 Directory with the file name as specified above and ready for upload.

Note: Users can verify the correctness of the E-Returns generated from Tally.ERP 9. The Excise department has provided a XSD file using which the xml has to be validated and then uploaded to the department website.

 

XSD stands for XML Schema Definition. XSD specifies how to formally describe the elements in an XML document. This description can be used to verify that each item in the XML document adheres to the description of the element in which the content is to be placed.

 

There are various tools available on net that can be downloaded for validating an XML against the XSD file. For ex. EditiX 2010, Stylus studio..etc. EditiX 2010 is a freeware

 

To compare the data structure of file generated from Tally.ERP 9 to the data structure provided by the Excise Department .

 

* Copy ACES_DLR.xsd file into Tally.ERP 9 folder

 

* Open the Returns generated form Tally.ERP 9 in any of the XML validation tools like EditiX 2010, StylusStudio etc. (tool which is used to check the correctness of the XML files)

 

* Click on the option Validate, the tool compares the structure to ACES_DLR.xsd file available in Tally.ERP9 folder and gives the Output as Valid (If there are no errors) or will displays the errors found in the document.


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