Consignment Sales - Excise reversal

[former_member655316]

Dear Friends,

I have a scenario in consignment sales, where i raise an excise invoice during the fill-up process based on the assessable value & during the issue i give a discount on the assessable value to the customer. Based on the quantity consumed (issued) i raise an commercial invoice every fortnight. Since the excise has been calculated on the assessable value which is more than the actual value billed during issue, i have to claim back the excess excise amount paid to the government.

Request your inputs & suggestions on how to map this process in the system.

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Regards,

Padamanabhan

[Lakshmipathi · Accepted solution]

Dear Padmanabhan

The process should be as follows:-

While despatching materials to warehouse, you charge only excise duty and no sales tax. In the next stage, while despatching from warehouse to end customer, you charge both sales tax and excise duty. If you are clear in this concept, you can configure accordingly.

You have to account the excise duty in such a way that for whatever amount you paid while moving to warehouse, it should tally with what you charge on customer and in fact, this should not be less than what you paid originally.

Let us take an example, if you pay excise duty of INR 1000.00 while moving to warehouse against one proforma, you would be selling part quantities to end customer with various invoices in which the respective excise duty and sales tax would be debited. You need to show the total excise duty which should tally with what you pay initially to Central Excise authorities.

thanks

G. Lakshmipathi