scrap

[Former Member]

Hai while doing scrap sales it it necessary to have excise duty and sales tax?

[Former Member · Accepted solution]

Excise duty is only applicable for goods which you are manufacturing. Scraps are basically rejected or any faulted things. Here you dont have to Pay Excise duty.

But as you are selling it so VAT will be applicable.

Thanks,

Raja

[Lakshmipathi]

1) Material type should be FERT with no MRP views but to maintain Accounting and Costing views.

2) Seperate pricing procedure for scrap sales with a condition type for Tax Deducted at Source

3) Seperate storage location should be created for scrap yard

4) As and when scrap is generated, create a sale order based on the available stock, do delivery and invoice.

5) No Excise Duty but Sales Tax applicable

Even if excise duty is not applicable, you have to generate excise invoice.

thanks

G. Lakshmipathi

[Former Member]

Follow this process to excise taxes :

1. Create a scrap sales order (VA01)

2. Scrap delivery (VL01N) / PGI

3. sales Invoice (F2) (VF01)

and if excise is applicable for the scrap, then excise invoice (J1iin) after sales invoice.

[Former Member]

Hello

Any material that is sent outside the factory premises should have a excise invoice. therfore scrap sales also should carry a excise invocie. bassed on the company process, the mthod of creating a excise invocei varies

in some cases it is created from delivery and other through a manual excise invoice J1IS

Hope this helps

Thanks

akasha