taxes(india) in consignments

[Former Member]

hi all SD champs, this one is a real teaser for me . Need yo expertise.

In indian mfg industry, whenever goods r leaving your place, u must pay the relevant taxes (BED, CESS, n sales taxes(or VAT)) to the tax authorities. Right? But particularly, in consignment fill up order, u send the goods to customer's place without invoicing him. Right? So, in this case, how will u levy the taxes n wrt. what?

Thx in anticipation.

Prashant.

[Former Member · Accepted solution]

There will be excise duty on an goods that is leaving the manufacturing plant, no matter under which scenario it is. In reference to delivery document in consignment fill up, A proforma invoice F8 is generated, with reference to that excise invoice is created.

regards

AK

Reward points if helpful

[Former Member · Accepted solution]

Ayub,

In consignment process who pay the

excise duty? either comapany or

consignment agent?

[Former Member · Accepted solution]

Initially the company will pay the excise duty and will include in the invoice for the customer, later consignment agent can claim the credit.

Hope I am right.

regards

AK

[jiteshmehta]

As every one said Excise will be applicable, but VAT or ST will only be applicable when Commercial Invoice is made.

You can refer SAP BB Library for details

Regards

Jitesh

[Former Member]

Excise invoice well send in the form of proforma invoce