Excise Condition Types

[Former Member]

Hi All

What is the difference between (BED,AED,SED) inventory %, Qty & (BED,AED,SED) Setoff %, Qty.

Please explain in breif

Regards

Jagadish

[Former Member · Accepted solution]

Inventory condition types are used to load the excise on material (NON CENVATABLE)

Then Setoff condition are used to take the setoff of the excise(CENVATABLE)

% and Qty is the type of the condition that whether it is based on Qty or %,

regrads,

sujit

[former_member529134]

BED 14% and BED setoff % 100 means you are paying tax @ 14% and you are eligible for 100% CENVAT credit for that.

Ill give an example:

You purchase a material for material price Rs.1000 @ 14%

ie you are paying Rs.140 as excise.

the total value of the purchase = 1140

u have a total sale of 1500 also @ 14%

so total sale amount (excluding sales tax) = 1500*114%=1710

Cenvat payable=Rs.210

Since BED Steoff % is 100, at the time of setting off the output and input cenvat, u can avail the credit for total rs. 140

ie u have to pay only 210-140 to the authorities.

if BED Steoff % was 50% u had to pay 210-(140*.05).

Hope it is clear now.