Rule 8 functionality in SAP

[Former Member]

Dear Members

How to handle Rule 8 Scenario in SAP.

Business example

Normally Indian Industries use to do monthly utilization or payment of excise duties. but in case of defaulter following is applicable

If the assessee fails to pay the amount of duty by due date, he shall be liable

to pay the outstanding amount along with interest at the rate specified by the

Central Government vide notification under section 11AB of the Act on the

outstanding amount, for the period starting with the first day after due date

till the date of actual payment of the outstanding amount.

(3A) If the assessee defaults
in payment of duty beyond thirty days from the due date, as prescribed in
sub-rule (1), then notwithstanding anything contained in said sub-rule (1) and
sub-rule (4) of rule 3 of CENVAT Credit Rules, 2004, the assessee shall, pay
excise duty for each consignment at the time of removal, without utilizing the
CENVAT credit till the date the assessee pays the outstanding amount including
interest thereon; and in the event of any failure, it shall be deemed that such
goods have been cleared without payment of duty and the consequences and
penalties as provided in these rules shall follow." (substituted vide Notification
No.13/2006-CE(N.T.) dated 1.6.2006)

Business will deposite perticular amount to PLA register, while sale of each consignment the duty will be reduced from PLA and the same debit PLA number should be print on Outgoing excise invoice Number. if the PLA has no sufficent balance. excise invoice should not be generated.

Please help in this.

Regards

Maruthi S

[Former Member]

Hi Maruthi,

Normally duty will be paid on 5th of every month to the government for the transactions which we did in the previous month. If the business fails to pay on 5th then government charges interest on that amount & gives due date for the payment. If the business fails to pay even on the due date, the govt withdraws the facility of paying duty on monthly basis. Then the business has to remove the goods on payment of duty through  PLA & TR6 challan through J1IH. The same details has to be printed on the invoice.

As per my knowledge there is no such standard functionality to block excise invoices if there is no sufficient balance in PLA.

Also this kind payment process will be as penalty from government to business for shorter period say e.g. 2 months. Ask the business to handle it manually by checking the balances in PLA by clicking on balances icon in J1IIN while creating excise invoice, if not post FI JV & create TR6 Challan in J1IH in the amount will be credited in PLA account. Then proceed to create excise invoice.

regards,

S.Himavanth.

[Former Member]

Thanks Himavanth, i have suggested exactly the same process and steps to our business team earlier. the have not accepted due to following reason.

1.They want PLA register Number to be consumed at the time of outgoing excise invoice generation

2. Check required on PLA Balance amount while excise invoice generation.

3. they want to automate all the process to avoid lot of manual intervention.

that's why i have posted here to take some suggestion on Std SAP. Thanks for the clarification given.

Regards

Maruthi S