Excise

[Former Member]

hi

we have purhased material from dealer and excise invoice is coming from manufacturer for Cenvat purpose .

how to post excise invoice ? and where manufacturer will come into picture

what are other settings ?

what is mean by SSI Vendor is the concept still in use ?

thanks

[pankaj_singh9 · Accepted solution]

Hi,

POSTING DEALER INVOICE: -

1. Create purchase order and enter net price (inclusive of base value and excise duties)

2. Excise duties not computed. (Excise duties = 0)

3. Capture of excise invoice

A) Capturing excise invoice together with goods receipt through transaction MIGO

- MRP indicator found in the Miscellaneous TAB popped up when you click on u201CMore datau201D button on Excise invoice tab at the header level in MIGO

The excise base value is defaulted as the PO price and the excise duties are zero. The excise base is changed such that the sum of the excise base value and the excise duties remain the same as the PO price. The excise base is reduced by the excise duty value and the differential amount is split amongst the relevant excise duty components.

Hence the material valuation also takes place correctly with the changed amount put as the excise base value. Otherwise this would incorrectly get inflated by the excise duty value also.

B) Capture excise invoice through transaction J1IEX

- MRP indicator found on the Miscellaneous tab in J1IEX

The excise base value is defaulted as the PO price and the excise duties are zero. The excise base is changed such that the sum of the excise base value and the excise duties remain the same as the PO price. The excise base is reduced by the excise duty value and the differential amount is split amongst the relevant excise duty components.

4. Invoice verification process through MIRO

Change the base value from PO Value to Assessable Value as per Vendor Invoice same as the base value of EI.

SSI VENDORS: -

Specifies whether the vendor qualifies as a small-scale industry and if so, which SSI status it enjoys.

Small-scale industry: - The businesses that, in India, qualify for reduced rates of excise duty. Businesses qualify as SSIs if, for example, they have less than two premises and a sales volume not exceeding an amount specified by the government.

You only need to use this field if you use the old excise determination method.

[Former Member · Accepted solution]

Thanks pankaj

But in this case I have to maintain condition record or not if condition record need to main maintain than what will be the

percentage of taxes same ?

another qustion is that Can we use single excise invoice for multiple dealer challan

I am using TAXINN procedure So as per your suggetion no need to maintain SSI Status ?

Regards

Sachin

[Former Member · Accepted solution]

Hi Sachin,

As per my understanding and the business scenario goes we rae not in the position to tell the amout of duty which will be pass on to us in case of 1st & 2nd stage dealer so we will create the PO with all the taxes but amounting zero tax value and add the same tax value in the net price of the item...

Later on we will split the tax amount by clicking the MRP indicator at the excise tab at header level while doing GR in MIGO trax.

So create the condition record with zero tax amount just for the purpose of information.

Later you can post the excise invoice once the dealer provide you the invoice where in we will have the info of how much CENVAT credit we can take.

You need to manually enter the Tax amount while capturing it in MIGO trax.

Hope it helps.

Regards

Sujoy

[Former Member · Accepted solution]

Hi sachin,

case1)

In trading scenario excise invoice is coming from manufacturer only.Dealer is only work as the tranffering medium.

Dealer is charging u the value which is inclusive of excise.

So while creating the PO u need to create the PO with Zero Excise(as price is inclusive of excise).u can maitain VAT or CST condition for this if applicable.PO valuation is no where wrong in this case.

At the Time of GR u can manually put the excise values as per invoice of the Manufacture.By ticking as MRP product the excise amount will get deducted from the Base values(u have to do manual calculation to get the base value)

Now at the time of MIRO u have to again change the to the base value. then click for calculate Tax.

case2)

u can directly take the excise credit also.By capturing the excise invoice through J1iex.

If any doubt please ask.