In consignment fillup is it necessary the excise duty?

[Former Member]

Hi experts,

In the consignment sales when we are doing consignment fill up is it necessary Excise invoice? Is it possible Excise invoice without billing?

[Lakshmipathi · Accepted solution]

When you move the goods from a manufacturing unit, you should produce an excise invoice to comply with statutory purpose.

Moreover, you need to submit monthly excise returns to Central Excise authorities in which case, if you dont generate excise invoice, how will you capture the excise duty involved for the export despatches made.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hi lakshmipathy,

Thanks for u r reply. if u don't mind can u give me this with an example. So i can understand clear picture of this.

regards,

raju

[Lakshmipathi · Accepted solution]

Dear Raju

Let us assume you have a warehouse in some overseas country to cater to the needs of overseas customers in that country. For this, you configure consignment fillup process.

Here when you despatch the goods to warehouse, though there is no excise duty and sales tax involved, you are suppose to account the excise duty in RG1 register which should be submitted to Central Excise authorities on a monthly basis. As you are aware submitting RG1 register to Central Excise is one of those statutory registers. In other way, we can say that for each and every outgoing material, you are suppose to show proper documentation / registers to Central Excise.

In SAP, unless you capture the respective excise duty in excise invoice then and there, it will not update the RG1 register. Hence, you will not be able to maintain proper data. So when you move the goods to warehouse, you should generate an excise invoice referencing the proforma invoice.

At the month end, in no time, the excise people can generate report of RG1 register and submit to Central Excise authorities.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hi lakshmipathy,

Thanks for u r valuable answer.

regards,

raju

[Former Member]

Hi raju,

A business document, in India, that you prepare when you issue excisable goods from a manufacturing plant, for example:

· To be sold to a customer

· To be transferred to another of your plants

The excise invoice lists the goods that you have issued and states how much excise duty applies. Your customer uses the excise invoice to claim back the excise that it has paid from the excise authorities.

Use

In the system, there are three different procedures for creating excise invoices

· Sales direct from the factory

This procedure is for when you sell manufactured goods straight from the factory at which they were produced, in which case you levy excise duty when the goods leave the factory on their way to the customer.

If, when you send the goods to the customer, you enclose the commercial invoice, you create the excise invoice with reference to the commercial invoice. If you want to send the commercial invoice after you have dispatched the goods, however, you create the excise invoice with reference to a pro forma commercial invoice. For more information about these procedures, see Sales from Factories.

As well as creating excise invoices individually, you can also create them in batches (see Creation of Excise Invoices in Batches).

· Sales from depots

A depot is a site at which the goods are stored, away from the factory at which they were produced. In this procedure, you have to levy the excise duty when you transfer the goods from the factory to the depot, and then make sure this is passed on to the customer when it makes a purchase. For more information, see Sales from Depots.

· Sales (other goods movements)

Some other goods movements may also require you to create an excise invoice with reference to other documents. The system offers separate functions for these purposes (see Other Outward Movements).

Swamy H P