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Tax rate change of export Excise invoice - India

Former Member
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Hi Experts:

Recently I got the requirement about Indian tax rate change of export Excise invoice, and I had no clue about that so far. Below is the specific request.

We run J1IIN to create outgoing excise , the tax rate BED(JEXP) is 12%, ECS(JCEP) is 2% and SECess (JA1X) is 1%,  but as per the legal requirement , BED , ECS and SECess need to be changed to 12.5%, 0% and 0 respectively, and when we get into JI11N, then click on calculate icon, then when I look at Excise details, the Excise invoice type needs to be change to "Bond" instead of ":No Bond), and I went through Tax on Goods Movements/India and I didn't find any clue about, could someone advise in details?

13 REPLIES 13

rakesh_goenka
Explorer
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Hi Allen,

The Changes in Duty of Excise had come into effect from  the Financial Budget 2015, Where Education Cess and Secondary and Higher Education Cess were no longer Applicable on Duties of Excise.

Hence, there are 2 ways to resolving this issue.

1. Create New Tax Codes with Basic Excise Duty @ 12.5% Only and Maintain the same in FV11. ( Depending upon the Kind of Config. of your System. OR

2. In FV11 for the Condition Record of Education Cess and Secondary and Higher Education Cess, Maintain the End Date as 28.02.2015, if you want to Continue using the Old Tax Code's.

Regards

Rakesh Goenka

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Hi Rakesh,

Do you know how to check those condition names for those three taxes?

And do I just need to change the tax rate of Basic Excise Duty or do I need to create a new condition?

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Hi Allen,

If you choose to Create a New Tax Code then Create a New Tax Code from FTXP and Mark 12.5% against the BED Condition Type.

OR

If you intend to use the Existing Tax Code then go to FTXP and Check the Existing Tax Code which has BED+EC+SHEC , Mark the Condition type against the Rates of EC and SHEC and then go to FV12 and maintain the End Date Against the Condition Type for EC and SHEC.

  Ideally you should Create New Tax Codes.

Regards

Rakesh Goenka

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Hi Rakesh,

If it needs to create a new tax code via FTXP, then which condition can I create copying from?

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Hi Allen,

You Can look up to a similar existing Tax Code and Check the Condition Type against which Rates are Maintained in the Similar Existing Tax Code. Next you can Create a New Tax Code and Maintain the New Rate of Excise Duty i.e. 12.5% against the Condition Type for Basic Excise Duty. Then for the Setoff of Excise Duty you will have to maintain the Condition type for ED set Off in FV11 to 100%.
Then your Tax Code would be Ready to be used.

In Case you  have any further Queries get back to me.

Regards

Rakesh Goenka


Lakshmipathi
Active Contributor
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Moved from SAP ERP Sales and Distribution (SAP SD) to Internationalization and Unicode.  Post all your CIN related queries here

Former Member
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Hi Allen,

Earlier there were condition types to meet requirement of taxes (JEXP - 12%, JCEP - 2%, JA1X - 1%)

Now only condition type JEXP is enough to meet the requirement. Maintain the condition record for JEXP as 12.5%. Still if any issues please do let me know the tax procedure whether it is TAXINJ or TAXINN.

Now coming to your question  regarding the excise invoice type. Kindly cross check the configuration setting Logistics General -> Tax on goods movement -> India -> Business Transactions -> Outgoing excise invoices -> Maintain Default Excise groups and Series   groups are maintained.

or you can change the excise invoice type manually at the time excise invoice processing.

Kindly go through the following OSS notes 2132309, 2136624.

Regards,

S.Himavanth.

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Hi Himavanth,

We are using TAXINN, so in note 2136624, it is saying that "Ans: For Customers using TAXINN - Create a new conditions records starting from date of changed rates with new rates.so where should I create a new condition record starting from the date of changed rates? via FTPX? After that, then what's the next step?

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Hi again Himavanth,

I did more researches today and found out that the condition JEXP, JCEP and JA1X are the conditions which had been maintained via VK11, When I looked at the combination of those three conditions, the first combination is Sales org/Ref.Doc(delivery number)/Ref item, does it mean that the user needs to maintain it each time the delivery gets created? What's the process, I think that is what I need to find out from the user.

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Hi Allen,

No need to maintain for that combination.

Multiple key combinations are available, based on your business requirement decide which one to use.

E.g:

You can use -> Customer/Material

                   -> Material

                   -> Country/Plant/Ctrl Code etc based on your requirement.

Regards,

S.Himavanth.

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You need to just change the rates in VK12 for the existing records. Or else terminate the valid to date in VK12 and do a fresh VK11 from the next day.

Regards

Binoy

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 just change the rates in VK12 for the existing records.



Never ever one should follow this practice.  Always for any change in rate or value, only VK11 should be executed which is the Best Practice.  By doing so, automatically, the validity of the existing condition record would be closed prior to the creation date.



G. Lakshmipathi




phanikumar_v3
Active Contributor
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Always Tax rates will be maintained in FV11/12-If you are using TAXINJ

Always Tax rates will be maintained in VK11/12-If you are using TAXINN.

This is the Basic difference between these two tax calculation procedures & the advantage with the later one is You may go ahead with 2 or 3 taxcodes (infact-will be sufficient-if you are in TAXINN)

have you tried the way of changing ETT type as suggested by Mr Himavanth?

Phanikumar