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Excise in Subcontracting Process

Dear All,

In Sub-Contracting Process I think Excise comes into picture if the subcontracting vendor returns the material after a period of 180 days. Is this correct??

Now as I understand we use a zero tax code in the subcontracting orders. When we create a Subcontracting Challan using J1IF01, we can see excise duty fields such as BED,ECS etc. So from where system will determine the excise values when we create a SubContracting Challan.

In for Subcontracting with full payment of excise duty it is mentioned that we have to create an excise invoice when we send the materials to the sub-contractor. When we do this & how?

Also its mentioned that when the subcontractor returns the goods he sends a separate excise invoice which have to captured & posted?

whats the difference between the 2 excise invoices above & how is the impact on the books of A/C?

I mean the CENVAT credit taking/reversal etc??

Kindly provide valuable inputs.


Former Member

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