Free Goods senario ?

[Former Member]

Dear All,

When i am using free goods senario both Exclusive or Inclusive, i am confused about the taxes occured during billing can any one help me what are the taxes like Basic Excise Duty , Ed. Cess, Hr. Ed. Cess & VAT or CST .

if it is possible lz explain with example.

For e.g: if i go for on 10 products 2 are free in that case how i charge all the taxes? on 10 products or 12 products Cost.

Award points for useful answers.

Thx & Regards,

Pankaj

[Former Member · Accepted solution]

Hi,

For freegoods can only given discount of 100% on baisc price,rest of the taxes are as it is.Whatever the taxes are applicable of that product that is same.

Regards,

Chandra

[Former Member · Accepted solution]

Hi Chandra,

Thx for your reply.ok it means when i am sale 10 products on 10 products 2 are free, price & taxes are occured on only value of 10 products.

But when we are manufacturing 12 products we have to subbmit exsice duty for all the 12 products is it wright?

Also in case of Free of Charge Senario Excise duty is nill ?

Plz explain me .

Thx & Regards,

Pankaj

[Lakshmipathi · Accepted solution]

Dear Pankaj

Just to clarify your doubt on excise duty, once goods moved out of factory, it is laible for duty. You can either bill the same or free of cost but you must pay duty.

Thanks

G. Lakshmipathi

[Former Member]

Hi Pankaj,

Better you analyse the process flow of your client first ,or conserned with the Process head and find out how they managed this without Sap .So you will know the legal requrement what to do in SAP.(As of now wt u have considered from sap is correct.i.e. no duty on free item & every manufactured item is lible for duty)

karnesh