Repair material with excise

[Former Member]

HI expert

Client sends a product (XYZ) to get repaired at some subcontractor. The subcontractor use a material (PQR) for repairing. PQR is exciseable and the service given by subcontractor is taxable for service tax. Presently the PO is created with only service tax but what about the material PQR (exciseacle) that is being used by the subcontractor in repairing.

Regard

Nabil

[former_member824495 · Accepted solution]

Create PO with two line items. One with your regular item with service tax & second one with account assignment category 'K' with excise conditions.

[BijayKumarBarik]

Hi,

Depends how you are going to map.

Option-1=>

If subcontractor going to charge all at a slab (both service + material charge) as Service changes, then create Subcontract PO.

Option-2=>

Create one PO for the material (PQR) which fixed to material (XYZ) and another PO for service PO with service charge as service tax. Send material with material (XYZ) with 541MT and receive it with 542MT.Also receive excise material (PQR) with 101 with material PO & do SES for Service PO

Regards,

Biju K