Excise trading in 1st stage

Question

Hi all
My client owns a trading company.
In 1st stage client purchases from manufacturer with excise which he passes to its customer later on during sale. so how to create tax code for passes excise to customer at the time of sale.
How to handle purchase and sales for first stage in SAP B1?
Any soln for this??
Thanks
sudhir

Answer 1

Dear Sudhir,
Excise trading in Indian taxation is like, you purchase a item and pay excise duties later you sales his item and gets back the excise amount.
If your incoming excise tax amount is greater than your outgoing amount than you have to pay this difference to Govt.
Following example will help you to understand excise pass on:
Suppose you are purchasing item X on the price Rs. 100  from vendor V1. Your vendor puts the excise tax BED 10%. Now you are liable to pay Rs 110 to vendor V1.
Now you sale this item X to customer C1 at the cost of Rs. 200 with excise Code BED 12%.
Now your customer is only liable to pay Rs. 212.
How. 
Your Purchase Price            Rs.100
You Payed Excise on           Rs. 100 (Aces sable Value).
Your sale price                          Rs 200
Customer pays Tax on              Rs. 100 (Ace sable Value.)
Please Make sure that Accesable value is not the value on which you purchases item X, But a value on which you actually payed Excise.
In the above example Ace sable value for item X for your customer is Rs 100 only not Rs. 200.
Hope This will help you.
You don't need to create any special Tax code to pass on excise.
Accesable value column is available on marketing document where you can enter value manually.
Best Regards
Ashutosh