"Excise Tax Rate" and "Cess Rate" under J1ID

[Former Member]

Hi All,

This is one basic question I have. But I don't find any fruitful result on the net.

Our company is using TAXINN procedure. Condition based pricing procedure.

So Excise and Cess rates are picked up from Condition records.

But I found some entries are maintained under "Excise Tax Rate" and Cess Rate" in J1ID.

What is the need for this?

Eventhough we are using condition based pricing procedure (TAXINN), is it mandatory to maintain these entries?

Kindly explain.

Regards,

Raja Durai

[Former Member · Accepted solution]

Hi Durai,

It is not necessary to maintain the rates in J1ID if we are using TAXINN.

Also check with the MM team whether they have maintained it for any other purpose.

Regards,

S.Himavanth.

[Former Member · Accepted solution]

Hi Himavanth,

Similarly, “Excise indicator for plant & customer” and "Excise indicator for plant & vendor" are also required only for TAXINJ?

Could you please confirm.

Regards,

Raja Durai

[Lakshmipathi · Accepted solution]

If the tax procedure is TAXINJ, then, J1ID is mandatory.  On the other hand, if the tax procedure is TAXINN, then only Condition records are mandatory.  No data should be maintained in J1ID

G. Lakshmipathi

[Former Member · Accepted solution]

Hi Lakshmipathi,

Thanks for the response.

"Chapter ID", "Material and Chapter ID combination" and "CENVAT Determination",  these three things are mandatory RG1 register update and CENVAT utilization right.

Is it possible to update J2I5 and J2IUN without maintaining these views. Could you please confirm.

Similarly "Vedor Excise Details" and "Customer Excise Details" also common for TAXINN and TAXINJ. This is what my understanding. Kindly confirm this as well.

Regards,

Raja Durai

[Lakshmipathi · Accepted solution]

For your first query, ie. Chapter ID, yes you have to maintain chapter id for material, if the material is an excisable; else, not necessary.  Because, there in Chapter ID only, you set the Material Type and based on this only, values of such of those materials would be updated in different registers like  RG23A for Raw Materials and RG1 for Finished Goods.

On your other query, if I am right, there is a separate tab for maintaining Customer CIN details in which case, no need of maintaining in J1ID.  Since I don't have access to SAP, please test for one case where you don't maintain chapter id and see whether system is considering the duty

G. Lakshmipathi

[Former Member · Accepted solution]

Yes Lakshmipathi.

In the menupath Tax on Goods Movements -> Master Data -> Assign users to Material Master Screen Sequence for Excise duty -> User screen reference.

If we maintain our SAP User id here, then Customer Excise details, Sales tax, Service tax details for the Customer and Withholding tax details of the customer are visible in the Customer master itself.

Regards,

Raja Durai

[binoy_vargis1 · Accepted solution]

Hi Durai Raja,

In addition you will be able to edit and view Material "CIN Details". Either you maintain it in Customer Master, Vendor Master or Material CIN Details, it will be reflected in J1ID. If you maintain it in J1ID it will be reflected in Customer ,Vendor and Material CIN Details respectively.

Regards

Binoy

[binoy_vargis1]

There is one scenario where it will take Excise tax rates from J1ID even in TAXINN. This is at the time of Subcontracting when the components are not returned within 180 days.

For all other ChapterIDs no need to maintain Excise Tax rate in J1ID for TAXINN.

This "Excise Tax rate" determined the BED,Ecess and Shecess if You are using TAXINJ Tax Procedure.

Now under TAXINN the relevant entries under J1ID are.

1) ChapterID

2) Material ChapterID

3) Material Assessable Value(Used for J1IS and Subcontracting)

4) Cenvat Determination

5) Vendor Excise Details

6) Customer Excise Details

7) Excise Indicator for Plant

Regards

Binoy

[Former Member]

Hi Binoy,

Thanks for the response.

As per my understanding, for example Material M1 have a condition record of Rs. 100/Kg. Also it is maintained under J1ID Assessable value as Rs.120.

In normal case, condition record price should be considered. In case of subcontracting, we need to write a routine to pick up the price from Assessable value.

Is my understanding correct.

Regards,

Raja Durai

[binoy_vargis1]

Hi Durai Raja,

The case of Subcontracting is totally different. You are assigning V0 taxcode(Zero Tax) in the PO and the value that you are giving inside PO is not the material price but the convertion charges. The PO will take the conversion charge as 100 Rs. At the time of Subcontracting challan(J1IF01), the base value(Assessable value) of each component will be taken from J1ID-Assessable Value.

The rule is if the components are returned(consumed) within 180 days then no need to pay Excise duty.

Regards

Binoy