Excise process on materials procured on description

[Former Member]

Hi all,

1) Excisable material is procured on description.

how can excise process take place for this . ( CENVAT & VAT ).

thanks

[Former Member · Accepted solution]

Hi.

Maintain proper condition records for Plant/material Group.

maintain number ranges for objects J_1IRG23C1 & J_1IRG23C2** in SNRO transaction.

Create PO with proper account assignment.

Do GR & Post excise invoice for the same.

50% CENVAT will go in Suspension account bcoz the material with only description is considered as Asset.

Only 50% Cenvat credit can be taken in current financial year.7 remaining 50% in next financial year.

Regards,

Satpal

[former_member529134]

Hello

Procurement by description mean it will be either for consumption or it will be an asset.

In the case of consumption, along with the receipt entry in RG23A, an issue entry also will be created in the register with the next serial number as the quantity is directly for consumption.

In the case of assets(capital goods), register RG23C will be updated and only 50% CENVAT credit can be availed in the same financial year and the remaining credit can be availed only in the following financial years.

Regards

[deiva]

Hai,

In this case, the excise process are

1.While capturing excise invoice, the system will post issue indicator inaddition to the receipt indicator with separate serial numbers in the RG23A or RG23C register, as you are procuring for direct consumption.