Excise Invoice No. Range

[Former Member]

Dear all,

i want to give same no. range for domestic as well as export in excise invoice?

Is it possible?

Plz send me some solution for the same.

Also is it required different distribution channel for Export or deemed export ?

Plz send me some solution for the same.

Thx & Regards,

PM

[Former Member · Accepted solution]

Hi PM

Yes. It is absolutely possible to have the same Number Range for both Domestic Sales and Export Sales and I have been using it successfully (the Excise Department gets squeamish if they find a breakage in the Numbers and probably your Client also asked for the same the way mine did).

Juast above the Time of Removal field is a field called "Use Local Number Range" with a Checkbox. If you dont find it in the Overview Screen in the first instance, hit the 'Calculator' icon (Utilitzation) to go to the next Screen (you find the Excise Invoice Type: Local/Deemed Export and so on). Hit the back arrow key and this time the Checkbox will be enabled. Mark the Checkbox and save the Excise Invoice. You will find this Excise Invoice Number has taken after the previous Domestic Excise Invoice.

Just to be sure, if you are not going to use the Export Invoice Numbering, ensure that you do not define the Numbers for the object: J_1IEXCEXP in J1I9.

Regards

Ramana ND

[Former Member · Accepted solution]

Hi

Thanks for your reply.

Then is it possible to create ARE1 for domestic customer for SEZ sales.

Thx

PM

[Lakshmipathi · Accepted solution]

Dear Ramana

Though system allows to maintain the unique number range for both domestic and exports, I dont think this is adviceable to follow.

The reason being in export sales, as you may be aware the shipment will not be moved out from the manufacturing plant on the same day of invoice generation whereas in domestic, it will not be so.

Let us assume we have unique number range and analyse what would be the practical problems the assessee will face.

During month end, in the above scenario, let us assume I am generating some 10 consecutive export invoices on the last working day of a particular month (say 29th Feb) and after that I generate couple of domestic invoices on the same day. In this scenario, preceding domestic invoices and succeeding domestic invoices will have to be submitted to excise authorities.

In this typical scenario, there will not be continuous serial number and unnecessarily you have to give explanation to excise authorities for the missing invoice numbers and also you have to substantiate as to why the export consignment has not gone.

Considering all these practical difficulties, it is not adviceable to have unique number range for both domestic and exports. Of course, it is the discretion of the respective assessees.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hi

As far as I know, Sales made to SEZ Units come under Deemed Exports. You will then have to use ARE3 and not ARE1. Guiding principle for determining whether it is a Deemed Exports or a Regular Exports is the billing Currency: Exports made to Deemed Exports are billed in INR. That is the reason you will notice that the Deemed Exports are not considered for discharge of Export Obligations, EPCG scheme, for instance.

Regards

Ramana ND

[Former Member · Accepted solution]

Dear Lakshmipathi

I fully agree with your logic and have explained to my Client but he is hell-bent on going for the same Number Range because his Excise folks would turn blue in their faces if they find two different number series (although SAP's internal numbering will ensure there is no slippage in both the Domestic and Export number series - you could possibly try arguing your case before the Excise folks and see their reaction)

To answer your question of the time lag, please understand that the Time of Removal (and the Date of Removal) should satisfy the Excise folks. Besides, if the Time of Removal of the Material has been recorded on the Excise Invoice, then the Material has to leave your factory premises in the next 2 seconds - they have no business being there, although they can lie with the Freight Forwarder for ages.

Regards

Ramana ND

[Former Member · Accepted solution]

Hi,

Thanks for your reply, but for SEZ sales ARE1 is required and not ARE3.

Plz give me some solution for the same.

Thx & Regards,

PM

[Former Member · Accepted solution]

Hi

I have just now checked with the guy dealing in Exports and he confirms that the Sale made to a SEZ unit is treated as Deemed Exports and hence ARE3 Form is to be submitted. However, the assumption is that the SEZ Unit re-exports the Material; if the Material is used by the SEZ unit for it's own consumption, it is treated like a regular Domestic Sale with CST/VAT applicable.

However, if your Client argues that you need to file ARE1 so be it; he is the one who pays your Consulting fees and as Consultants who are we to argue with that?

If we need to file ARE1, my guess is that the standard procedure will be followed.

Regards

Ramana ND

[Lakshmipathi]

Dear PM

No it is not possible bcoz the objects for domestic differs from exports.

1) J_1IEXCEXP for exports

2) J_1IEXCLOC for domestic

It is better to have different distribution channels for normal export and deemed export.

thanks

G. Lakshmipathi