We have 1 plant in Uttranchal, which is tax exempted unit.
we receive Purchase invoice on which Vendor bills us the excise duty.
As this is our Tax exempted unit to pay excise & supplier is charging the excise.So,How to post these bills?
please reply urgently.
Treat this Plant as Non-Excisable but for this you have to create an Excise Registration Key and assign to this Plant. For this Excise Registration Key, don't activate any Taxes.
And create a non-deductible tax code for 14% BED + 2% ECS + 1% SECess + CST/VAT as applicable and then use this in PO. At the time of GR, these duties will get loaded to stock of material and credit GR/IR Clearing A/c. And during LIV, credit vendor and debit GR/IR Clearing A/c.