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Doubt in Excise Invoice

Former Member
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Dear All,

I have one basic doubt about Excise invoice incase of Export order.

Could you please confirm whether excise invoice will have values (BED, ECESS, HrECESS) incase if it export invoice.

My understanding is, export excise incvoice will have BED, ECESS and HrECESS values, but a statistical values. So it will not hit accounting. Please clarify if my understanding is different.

Another doubt is, for export commerical invoice, Duty values are calculated and we are paying to excise authorities but not posted to accounting.

Then how to claim CENVAT creadi incase of export sales.

Regards,

Mullairaja

Accepted Solutions (1)

Accepted Solutions (1)

Lakshmipathi
Active Contributor
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My understanding is, export excise incvoice will have BED, 
   ECESS and HrECESS values, but a statistical values

Your understanding is correct.

As you would be aware export is of different types. They are

a) Export under Rebate

b) Export under Letter of Undertaking

c) Export under Bond

a) Export under Rebate

Export under Rebate is the procedure in which the exporters first pay the central excise duty before clearing the goods from the factory and subsequently get it back by applying for rebate after the goods are exported.

b) Export under Letter of Undertaking

The manufacturer exporters have another option for clearing their goods for export without payment of duty. They have to give a letter of undertaking which is valid for a year. This procedure of giving a letter of undertaking was introduced as a liberalization measure.

c) Export under Bond

Exporters are classified into two categories. Manufacturer-Exporters who manufacture and export the goods in his own name without payment of excise duty and Merchant Exporters who buy the goods without payment of excise duty from a manufacturer and export the goods in his name. For getting the goods without payment of duty, the exporter has to necessarily execute a bond (standard forms are prescribed for various types of bonds, in which the assessee gives an undertaking to export the goods within a stipulated period as per the law). The execution of bond is to ensure that in case of non-fulfillment of obligation, the central excise duty amount liable to be paid on the goods can be realized from him.

thanks

G. Lakshmipathi

former_member267975
Participant
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Hi,

In export sales ZEXD is happening. I am using export pricing procedure and it's statistical.

Anything needs to be check while creating excise invoice through J1IIN. If so what and where ?

Anything needs to be done with ARE1 procedure configuration setting because I defined two new series group for two new plants so that needs to be maintained in ARE1 configuration. Please clearify me for ARE1 procedure.

Regards

Sp

Edited by: Sitans on Jan 13, 2012 6:58 AM

Edited by: Sitans on Jan 13, 2012 7:25 AM

Answers (1)

Answers (1)

Former Member
0 Kudos

hi raja

My understanding is, export excise incvoice will have BED, ECESS and HrECESS values, but a statistical values. So it will not hit accounting. Please clarify if my understanding is different.

Yes you are right in exports excise invoice the excise duties values should flow in order to be referenced in ARE1 but there will not be any accounting document created. In your pricing procedure the duties should statistical.

Another doubt is, for export commerical invoice, Duty values are calculated and we are paying to excise authorities but not posted to accounting.

In exports we will be paying the duties only when the export is under no bond or claim of rebate where the excise accounting document will be generated

regards

SAP SD

Former Member
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Hi,

Do you mean to say, in case export under Bond or Letter of undertaking, we have not need to pay the excise amounts to the excise authorities?

If yes, then what is the purpose of showing the excise values in the excise invoice and ARE1 document?

Could you please expalin.

Former Member
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HI

We have to show the excise duties in ARE1 because if we dont receive the proof of export which has to be submitted to the excise authorities within 180 days from export the same has to be paid to the excise authorities.

Also you to submit and keep track of the BED,ECess H Cess amount under LOUT or BOND

regards

SAP SD

Edited by: sapkpit_sd on Jul 15, 2010 9:00 AM

Former Member
0 Kudos

Hi,

We have to show the excise duties in ARE1 because if we dont receive the proof of export which has to be submitted to the excise authorities within 180 days from export the same has to be paid to the excise authorities.

Also you to submit and keep track of the BED,ECess H Cess amount under LOUT or BOND.

With the help of these only we can track the bond values.

Thanks & Regards,

PM