Excise point of view Clarification required

[Former Member]

HI

Once we delivered the goods to the Customer , some of the material are damaged in transporation

I received the Customer compliant but we didn't take the return back those materials , just we are sending material with free of cost

what sales document type i need to use ( SD or NL)

is it required to Pay the Excise Duites & VATor CST because net value is ZERO but the goods are moving from plant(esciseable plant) to customer location

and also Same as Sample we are sending to the customer

please clarify my doubts in Excise point of vioew

[Former Member · Accepted solution]

Dear Anuradha,

Use document type FD

Yes you should pay excise duty and VAT for these free of cost material.

so you create proforma invoice and with reference to this you create excise invoice.

And you can make the adjustment of excise duty for those damaged returned goods through T-code J1IH

Check the bellow link

Thank you,

[Former Member · Accepted solution]

HI

can you please elabrate like what the steps i need to consider for excise point of view in the both the cases what i mentioned

pricing prcoeure { Basic price is Statistical and remaining Excise Duties and VAT or CST are Non Statistical if i am worng please clarify }

[Former Member · Accepted solution]

Yes,you are correct.

and go through the above specified links even if you have any doubts after that,let me know to clarify it.

Note:even if it is free of charge,we should pay excise duty and tax.

Thank you,

[Lakshmipathi]

clarify my doubts in Excise point of vioew

Whatever be the scenario, if any excisable material goes out of a manufacturing plant, the manufacturer is suppose to pay duty to the extent of quantity being sent. This is excise law. The same case for tax also.

In fact, in excise, if you show the proof of taking back the goods to parent plant as rejections, then you can take the credit of duty paid.

In SAP, you can consider any document type and depending upon the requirement, you can customize it.

G. Lakshmipathi