Can anybody explain about use of 57F4 document

Question

can anybody explain about use of 57F4 document.

Answer 1

In Indian subcontracting process when you issue materials to a subcontractor, you need to keep track of what materials you have issued and when they have to be returned by subcontractor.  The reason for this close monitoring has to do with Indian tax law. Under excise law 57AC, when you send materials to a subcontractor for processing, you are not required to pay any excise duty, even though the materials have left your premises. However, if the materials have not been returned to you within 180 days specified by the law, you will have to reverse any excise credit that you posted when you have purchased the materials.  When you send material out of your factory premises you need to send with 57F4 Challan.  In this process you are going to do the same.
The Process Flow would be
u2022     Creating Subcontracting Purchase order
u2022     Message Output for Purchase Order
u2022     Transferring of Components to Subcontractor
u2022     Creating of subcontracting Challan
u2022     Goods Receipt for Purchase Order
u2022     Reconciling Subcontracting Challan
u2022     Completing/Reversal/Re-Credit Subcontracting Challan
u2022     Logistics Invoice Verification
thanks
G. Lakshmipathi