Lesson-40 How to take Abatement in Tally.ERP9
In this lesson we know about Rate Abatement in Tally.ERP9. Lots of Business take Rate Abatement Effect on Service Tax, Excise Duties etc. But 1st we know about rate abatement. A small definition of rate abatement as follows.
Basically Rate Abatement is applicable on MRP Based Invoices, Abatement effect on only MRP Value & Excise Duty. So What is the calculation of rate abatement, here it is. Let example start with a excise invoice,
A Mobile phone amount is Rs. 10200.00 but MRP Base rate is Rs. 9300. Total Quantity 250 Nos., So the formula is = MRP * 30% = AMOUNT – MRP (9300 * 30% = 2790, THEN 9300 – 2790 = 6510)
I.E. Total Quantity * MRP After Abatement = (250 * 6510 = 1627500), Excise duty will applied on Rs. 1627500-00 + 2% Education Cess %, 1% Secondary Edu Cess + Output Vat / CST.
Total MRP Amount = 1627500-00
Excise Duty @ 12% = 195300-00
Education Cess @ 2% = 3906-00
Secondary Edu Cess @ 1% = 1954-00
Output Vat @ 12.5% = 343896-00 (Output VAT / CST is not effect on abatement)