Subcontracting Challan (J1IF01) : Excise Duty Zero

[Former Member]

Hi all!

I would like to put forward my doubt before you. This is what I have done in "Subcontracting w/o Payment of Duty":

u2022 Creation of Subcontracting PO (ME21N)

u2022 Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B)

u2022 Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)

u2022 Goods Receipt w.r.t. Subcontracting PO by marking "No Excise Capture" (This is what the new Best Practice suggests)

u2022 Reconciliation of Subcontracting Challan (J1IFQ)

u2022 Completion of Subcontracting Challan (J1IF13)

u2022 Generation of Annexure IV (J1IFR)

I have done all the necessary settings and the entire process is working fine...

Now my doubt is while creating Subcontracting Challan, I get the Assessable Value, which I have maintained in the Material Master, but the BED, AED, SED, and Cess etc., values are "Zero" (note that I have maintained all the values in J1ID for excise duties and I am using TAXINN). Also when I select "Selection of Excise Invoice" nothing is inside it.. Without doing much changes I proceeded further, everything worked fine, but is that the right way of processing? I think there should be some value for BED, AED, SED, Cess, etc, in J1IF01, and if I am right, why are the values not flowing into their respective fields? Where possibly could I have missed the configuration?

Looks like a long question, but please bear with me, and give me your valuable suggestions.

Thanks & Regards,

Senthil A

[Former Member · Accepted solution]

System is doing correct thing.

Ur configuration has no problem.

Excise amount should be Zero in 57F4 challan

As this challan required to send the excisable goods for processing to vendor without payment of excise duty

regards,

sujit

[deiva]

Hai,

1.The process followed are exactly correct. The excise duties will not flow in the Challan.The Subcontracting challan - Annexure V is the excise document for the movement of Excisable goods for the further process.

2.Only the assessable values maintained in the J1ID is flowing to the challan.

3.If the goods are not returned with in 180 days as per GOVT norms, u have to reverse the challan to reverse the availed cenvat credit.The excise duties are calculated in the base of asesssable vlaue & excise rates maintained in the J1ID.

[Former Member]

Thanks a lot for your replies guys. I'll take the last two answers, which are more appropriate to my question. Not to mention, points will be awarded accordingly.

Senthil A

[kunal_ingale]

hi

plz check that u have maintained the accesable values in J1ID

regards

kunal