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Q1

Purchase Price of First Stage Dealer

   
PURCHASE 160000
EXCISE DUTY 16000
TOTAL 176000

Suppose he wants to earn profit of 10000

How much Excise duty should he charge  in this case?

Prepare his Sales Bill

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Sales Bill

   
SALES (160000+10000) 170000

EXCISE DUTY

(Same as Purchase)

16000
TOTAL 186000

Note

First Stage Dealer cannot charge Extra  Excise duty (as he is not doing Manufacturing)

He can only transfer excise duty charged on Purchase

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Q2

How  much Excise duty will be paid by Different Parties in this case?

Case When First Stage Dealer Earns Profit on Transaction  - Concept of First Stage Dealer

 

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case004 new answer.png

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Q3

Purchase Price of First Stage Dealer

   
PURCHASE 160000
EXCISE DUTY 16000
TOTAL 176000 

Suppose he wants to sell half goods and earn 6000 Profit

Make Sales Bill

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Cost Price of Half goods=160000/2=80000

Profit=6000

Total Sales Price=86000

Excise duty will also be proportionately charged

(1/2 the excise duty on Purchases)

Sales  Bill 

   
SALES 86000
EXCISE DUTY 8000
TOTAL 94000

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 Q4

Purchase Bill of First Stage Dealer

   
Purchase 300000
(60000Kg*5)  
Add  
Ed 12.5% 37500
Total 337500
Vat 5% 16875
Total 354375

Suppose He Sells 60000Kg*7,Make Bill

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Sales (60000Kg*7 420000
Ed 37500
Total 457500
Output Vat 5% 22875
Grand Total 480375

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Suppose he Sells 23000Kg*8,Make Bill

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Sale (23000*8) 184000
Ed (37500/60000*23000) 14375
Total 198375
Output Vat 5% 9918.8
Grand Total 208294

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  1. Tax Practical
  2. Practical Excise
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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