Excise duty for sample

[chetan_b]

Hi Friends,

How can I post excise invoice for material provide to customer for sampling ?

Regards,

Chetan.

[Former Member · Accepted solution]

Dear

The excise rules does not distinguish between sample or saleable or self consumed . It says if the material leaves the premisses of the Factory excise duty is liable.If you manufacture and still have not sold then also you are liable to pay excise.

Regards

Jyotsana

[Former Member]

Hi ,

You will have to create diffrent Sales document and distribution channel for sample sale all the procedure is same like normal sale only in account determination make one G\L account for excise duty with description (excise bare by company account) for that take help of Your FICO guy

Regards

Sachin Kadam

Edited by: sachin kadam on Mar 3, 2008 10:44 AM

[Former Member]

Hi

You will still need to charge Excise Duty, Education Cess and Higher Education Cess when you despatch material on Sample basis. The only difference between a regular Sale and a Sample is that Sales tax is not leviable while sending a Sample (hence the declaration that the Material is not meant for Sale and hence has no Commercial value).

Since sending Samples is primarily a Sales promotion activity, you will not be recovering the Excise Duty from your Customer / Prospect. Since the Assessable value is to be kept a minimum, you may want to show a lower Basic price (and consequentially a lower Assessable value). You may also want to show Rs 1/- both for Education Cess and Higher Education Cess (atleast that is what I have shown as per my Client's requirements) through a Routine attached in your Pricing Procedure.

Regards

Ramana ND

[Former Member]

incase of Sample Orders (vov8), have separe order type & a separate Document Pricing Procedure to call separate pricing procedure. In this Pricing Procedure (v/08), maintain it similar to the regular pricing procedure with all condition type marked as Statistical, except excise condition type.

Hope the above is helpful.

Regards,

Rajesh Banka

[chetan_b]

Hi,

THANKS TO ALL.

Regards,

Chetan.

[Lakshmipathi]

Dear Chetan

Irrespective of whether the material being sent out from a manufacturing plant is sample or saleable, you are suppose to pay excise duty.

So once SAP billing document is generated, you have to create excise invoice through j1iin with reference to SAP billing document. Once you save the excise invoice, the relevant postings are taken care of.

thanks

G. Lakshmipathi