RG23D Requirement

[Former Member]

Hello friends,

In  the current business scenarios of this client during depos transfer an excise invoice is created through J1iin and the goods are transfered to depo , they r further sold from depo to customers , but at this movment they do not recover exxcise duty  from customer therefore no excise conditions appear in the depo pricing.So the busness cycle that i have proposed is without J1IG and J1IJ transaction  as mentioned below and no updation of RG23D register, kindly let me know if this correct .. and r their any legal complications involved if RG23D is not updated in such scenario.

STO  Plant to depo ME21N

Delivery VL10D

PGI VL02N

Proforma invoice VF01

Excise invoive J1IIN

MIGO

Sale from depo to customer

ORDER VA01

Delivery VL01N

PGI VL02N

INVOICE VF01

Kindly suggest.

Regards,

Atul

[Lakshmipathi]

Moving from sales forum to Internationalization and Unicode which is related to CIN.

G. Lakshmipathi

[Lakshmipathi]

kindly let me know if this correct

For me it is totally WRONG.  In SAP, if any plant is considered as Depot by checking the box in IMG for plant settings, then the Business needs to recover duty as and when sales happens.   But can you update here how your client is submitting the excise returns for this scenario ??

at this movment they do not recover exxcise duty  from customer

Then when are they collecting the duty from customers ?   If they (Business) are not at all collecting from their customers, then I feel, the depot should be treated as another plant.

G. Lakshmipathi

[Former Member]

Hi Lakshmipathi,

I was waiting for your reply and their, you are here thanks for your inputs.Let me explain it further  -

While selling the goods from the depo the MRP price is added up with the excise duties and not shown seperately in the pricing procedure , therefore no excise conditions appear in the depo pricing and this is how the excise duty is recovered from the customer .

We have currently made a tick in the depo indicator and maintained different excise group and series group for depo , i believe now the tick should be removed and also no need to define seperate excise group and series group for depo.

Kindly comment 

Regards,

Atul

[Former Member]

Hi Lakshmipathi,

I just missed on your question of submitting excise returns..

During returns as per the discussion with the client they dont claim any cenvat credit from the govt since the return invoice received from the customer dosent have seperate excise components shown in it.Once the return material is received in the plant they increase the MRP of the material to the extend of the excise duty that they have been losing and again sell the material to the customer.Therefore in this case they are not claiming any return from the govt but also not losing since they are adding in the pricing and recovering this from the customer. 

Regards,

Atul

[Lakshmipathi]

Two more questions:-

1) How the goods are delivered from parent plant to this depot (showing the duty separately) ? 

2) Is that depot is registered with excise ?

I am sure, duty should have been levied in their transfer price from parent plant.  If that is the case, then the practice what your client following is wrong.  That is without showing the duty amount in the sale invoice.

As per excise rule, seller / manufacturer are suppose to account all excisable products when they are moved out of the gate and every month, they would be submitting statutory returns.  I am surprised how your client is managing the excise registers considering the fact that they take credit while inwarding the materials from their parent plant and not showing the same when sales happens.

Just ask your client how the cenvat credit is being accounted in that depot and shown to excise authorities.  Probably, this will answer your query.

G. Lakshmipathi

[Former Member]

Hi,

The goods are stock transferred from manufacturing plant to depo wherein an excise invoice is generated and the excise conditions appear in the sto pricing procedure and proforma invoice

The depo dosent have a seperate excise registration.

Regards,

Atul

[Former Member]

Hi,

Since that Depot is non excisable we can do like that,it's legal only.

Regards,

Suresh

[Former Member]

Hi Suresh,

Thanks for your answer.

Regards,

Atul