How to calculate CESS & ECess on BED

[Former Member]

In a particular dealer invoice issue, i want to calculate Cess & Ecess on Basic Excise Duty. We are currently using TAXINJ. I tried by changing From Reference Step for JEC1 & JEC3 in TAXINJ & got the solution currently. But i don't think its the correct way to do it. As TAXINJ is a standard procedure & therefore making changes in it will disturb the process for other invoices.

Looking forward for the solution of the same

Regards

Anupam

[Former Member · Accepted solution]

Hi

check the below calculation , its standard .

S.No	Component	Percentage	Value	Amount	Calculation	Condition type
A	Basic Price			100.00		PBXX
B	Discount	@5%		5.00		R000
C	Net Price after discount			95.00	C=A-B
D	Packing & Forwarding	@2%		1.90	D	YK01
E	Subtotal 1			96.90	E=C+D
F	Excise duty (On E)	@8%		7.75	F	JMO1
G	Ecess on Excise duty (On F)	@2%		0.16	G	JEC1
H	SEcess on Excise duty (On F)	@1%		0.08	H	JA1S
I	Total Excise duty			7.98	I=F+G+H
J	Subtotal 2			104.88	J=E+I
K*	CST (On J)*	@1%		1.05	K	JEXS/ZTA1
L	Subtotal 3			105.93	L=J+K
M	Octroi	@4%		4.24	M	JOCM
N	Subtotal 4			110.17	N=L+M

[Former Member]

Could you please share a screenshot of the same?

[Former Member]

If the condition calculations are not as expected, and if the issue is with steps in pricing, we need to change it. You did nothing wrong. Just need to ensure that whenever we do any change in prising, it is advisable to test all the scenarios.

[Former Member]

So it means issue is resolved now.

[Former Member]

Yes, but just want to know whether is there any other way to do that or whatever i did is correct?

[Former Member]

Just a wild guess , just check in J1ID setting related to "Exceptional material excise rate" under "excise rates" if the material and vendor combination some condition was maintained.....

[Former Member]

Hi,

There is different way to handle dealers invoice. No need to disturb TAXINJ. I have replied to you in other thread on handling dealers invoice situation.

[Former Member]

Nilesh,

I have done all the settings as you said, but in the last  i found that Cess & Ecess was getting calculated on total excise duties, therefore i need to done that minute changes in TAXINJ. So that they should be calculated only on BED.

[former_member213924]

Hi Anupam,

In dealer scenario what vendor do is he just pass on his excise duty on us which we need to capture in our system. Tick MRP indicator given on Miscellaneous tab and enter values on excise item tab.

Regards,

Samir Rana

[Former Member]

Hi,

See the some document on scn where already answered many time and u should copy the standard tax procedure don't make changes

in standard Tax procedure.

Always Cess & Ecess calculates on BED its standard Indian Commercial laws. So check your requirement again.

Thanks

Sanjeet

[Former Member]

Thanks Sanjeet for your reply.

I fully agree with you that CESS & Ecess should be calculated on BED, but in my client system it was not calculated like that, so i made the changes accordingly. So i just want to know whether its the right way to do that or do i have to design any account Key for the same ?