Reg ; Abt PROCEDURES FOR Sales tax and excise duty ... (J1IEX..ETC)

[Former Member]

Hi sap seniors,

Can anybody (HELP)tell me details abt SALES TAX ,EXCISE DUTY ,MANUAL EXCISE AND TAX CODES.While creating PO and posting the invioce using MIGO,MIR7(PARKING INVOICE), What r all tax procedure to be followed by mm-consultant. As a MM -FRESH CONSULTANT i m interested to know all TAX PROCEDURE related to MM-MODULES.

note;Especially for taxcodes AND STUDY ABOUT TAX PROCEDURES. please send any training materials regarding this sales tax--

THANKS IN ADVANCE FOR ALL MY SAP GURU'S

BY

mm

[Former Member]

Next you see how registers gets updated at the time of doing GR

In this case RG23A will updated as follows at the time of MIGO

Excise Entries

RG23A BED 16.00

RG23A Ecess 0.32

Cenvate clearing account -16.32

Stock Enteries

Stock account 100

Gr/IR account -100

In case of capital only 50% of duty goes to the register rest of Excise amount goes to hold.If we take above example then following transaction happens

Excise entries

RG23C BED 8.00

RG23C Ecess 0.16

Cenvate on hold 8.16

Cenvat Clearing account -16.32

Stock Entries

Stock account 100

Gr/IR account -100

After one year of this excise transaction on hold amount of capital goods can be transferred to registers according to excise law.For this transaction code is j2i8.

in PART1 entries also there is excise invoice details ?

Ans --> In excise invoise qty you are reciving are treated as part 1 entries at the time of capturing invoice part1 of respective excise register gets updated.

afetr posting excise invoice, what about invoice verification ?

At the time of invoice verification

following entries passes on if we take above example

Vendor account - 116.32

GR/IR account 100.00

Cenvate clearing acc 16.32

I hope now you woud have got a clear picture of Excise and its postings

Regards

Vivek

-- Reward for the Effort !!

[Former Member]

HI Sakthi,

First of all we will start with Excise Basics

You are producing a product with a raw material and sell it in market as finished good.

Now for the product you need raw material say its costing 100/- on which you pay 16% tax which is 16/-.

You are producing the finished goods with your cost inclusion of say 50/-.

Now the inhouse product cost is 100/-(raw matrl) and processing cost of 50/- which is 150/-.

You sell your product in the market at 16% tax on it, so your product market value becomes 150/- + 16%(on 150/-).

Excise duties are handled like this :

as you buy raw matrl at duty 16/- this will be taken as CENVAT into your account. so you have 16/- in your account.

as you sell matrl with duty 24/- you need to pay excise of 24/- Since you have 16/- in your hand need to pay Excise Amount to Gov't ( 24-16) : 8/-

The excise records are maintained for these as :

Raw matrl purchase and issues to production : Maintained in RG23A register, of which Part I is for quantity and Part II is for amount(Cenvat amt)

Production details are maintained in RG1 Register, including despatch details and balances.

The excise duty payable to Gov't is maintained in Personal Ledger Account (PLA).

The total monthly report of purchase production despatches - quantity/value is submitted to Excise Dep't via RT-12.

Hope this gives a clear picture.

Now how things work in SAP

see there are two type of excise is levied on the product 1. which can be claimed 2. which can not be claimed and then later on it gets added to the material value. In you case if BED is 16% then you can claim 16 rs if its claimable in SAP knowns as Deductible and if its not then material will cost you of rupees 116.

Now after manufacturing yo said your cost of material is 150 rs now you calculate the 16% on that which comes 27 rs so at the time of sale you get this amount of duty from your customer. So Govt rules states that whatever duty you have paid at the time of purchase you can get set off from the duties at the time of sale. so in your case as you have already paid rs 16 and 27-16=11rs are supposed to be paid by you to goverment.

Following are kinds of excise registers

RG23A -For rawmaterials

RG23C-for Capital goods

RG1-finished goods

The above are movements of excisable goods maintained in a plant.

RG23D-

This is movements of excisable goods maintained in a depot.

PLA-Personal ledger account

This is the bank account from which you transfer any money owing to the excise authorities.

Register RT-12

This is a monthly report that summarizes the CENVAT and PLA information from the other registers.

Part1 entry-

it will depict quantity or the volume of goods movement

Part2 entry-

accounting entries will be captured

Regards

Vivek

-- Reward for the Effort

[Former Member]

hi vivek

thank you very for your great explanation about sale and excise duty.

can u send me ur mail-id to me .. so i will keep contact with uu

Thanks & regards

sakthi( ur junior ) .

[Former Member]

HI,

Plz go through the below link for further details.

https://www.sdn.sap.com/irj/sdn/wiki?path=/display/erplo/cin+configuration&;

Regards,

Chandramohan.N