Excise in Subcontracting Process
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 help.sap 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.