Deemed Exports with Excise values and ARE-1

[Former Member]

Dear All,

I have a strange requirement from the client which I am finding difficulty with.

The requirement is with respect to Deemed Exports and is as follows:

A Deemed Export customer places an order and tells my client to charge Excise as he will not submit the CT form and will claim it directly from the govt.

Therefore, the user has created a sales order, delivery and invoice with all excise values as done in a normal domestic cycle.

He has created the Excise Invoice as LOCAL and is asking to assign Deemed Exports Invoice number range.(it has currently been created with local number range)

Also when he is creating ARE-1, it is giving error that excise invoice not created for Exports.

I have tried convinving the client that it is not possible to create ARE-1 with local excise invoice. But the client is adamant and says that other companies do it and we need it. I have found no solution for this on the internet either.

Can anyone please suggest a solution for this. Is this legal in the first place?

Thanks & Regards,

Rohan Gudavalli.

[Lakshmipathi · Accepted solution]

Yes system will check the origin and destinatation country when you create ARE-1 and unless the destination country is othern than IN, you cannot generate ARE-1.

May be with some CIN user exit, you can write a coding in such a way to treat the destination country other than IN.

G. Lakshmipathi

[Former Member · Accepted solution]

Dear Mr.Lakshmipathi,

Thankyou for the reply.

The problem here is that the customer is a Deemed Export Customer. Do you stlll recommend changing the country from IN through a user-exit?

Thanks & Regards,

Rohan Gudavalli

[Former Member]

Hello,

We are creating ARE-1 using Z development. It is based on the Excise Invoice, deliveries, shipment number and other master data related to Projects/Orders. As we have used this route, we could even generate ARE-1 for SEZ orders/Projects of India.

Great escape!

May like to try this route?