Excise Rate changes from 10% to 12 % in J1ID

[Former Member]

Dear Experts ,

As per the changes in excise rate from 10 % to 12 % in J1ID, effective from FY 2012-13, we are finding that changed excise rates are getting reflected even in old PO’s.  For example PO’s created long back in FY 11, 12  against which GIN & Invoice is complete, the excise rate have changed from 10 %  to 12%  in the PO documents

I found that The excise rates in J1ID have been overwritten with effective date remaining as same. (I.e. from the beginning to the end).  Due to this the taxes in old PO documents have changed from 10% to 12 %.

In my opinion The excise rate should not have been overwritten. New entry should have been made with effective date from 01.04.2012.

Please sugegst.

Thanks in advance.

Regards,

Vishal

[former_member187965 · Accepted solution]

Hi Vishal,

If you make changes in the previously maintained rates then it will get overwritten in old PO as happen in your case. After budget changes you are supposed to add the new tax rate (12%) with new "valid from" and "valid to" dates.

[Former Member · Accepted solution]

Dear All,

Thanks for the suggestions.

I hope the answers are correct & useful to me.

Still I would  like to know what is standard practice being followed in the industry for changing excise duties in J1ID.

[former_member186100 · Accepted solution]

hi Vishal,

Please refer sap note , though the note is for 2009 but concept is same and master note for budget 2012  refers to it.

Note 1359108 - Master note for Indian Budget 2009 for Logistics (MM & SD)

i) How should a change in tax rate for an existing excise duty be handled in MM?

Ans: For Customers using TAXINN - Create a new conditions records starting from date of changed rates with new rates.

For Customer using TAXINJ - Maintain the new tax rate in J1ID

with the new validity period starting from the date from which the rates have changed.

for complete details you can refer

Note 1563351 - Master note: Indian Budget 2011-2012 impact on Logistics

cheers

Avinash

[former_member187965 · Accepted solution]

Hi Vishal,

Normally the tax rates are changed after the budget release only. New tax rates are updated with the "Valid from (Budget Release Date)" and "Valid to" dates to avoid the tax related changes in old PO. That's it, nothing special.

[Former Member]

Dear Avinash,

Thanks a lot !!!

The SAP notes provided are extremly helpful & I hope I would be able to implement the same.

Once again thanking all for your suggestions .

Regards,

Vishal

[Former Member]

Old value should not be over written. Maintain same chapter ID with 12% with validity period from date (effective date of this duty) & end 10% duty -chapter ID by giving to date 31.03.2012.

For example :

15060000	1	01.04.2012		12.0000
15060000	1	01.03.2008	31.03.2012	10.0000

[Former Member]

Dear Vishal,

If the material is posted in current financial year than  12% tax should be calculated. Why you want it to calculate 10 %?

If you want 10% should be still calculated then u need to create new condition similar to j1id and to add it in the tax proceduregive it a value of 12 % with current validity period.