Sale to SEZ,EOU,Duty Exemption zone

Hi
I am configuring pricing procedure determination and Pricing procedure for following customers
How To Handel sale to
1) Customer lying in Special Excise Duty Exemption zone(customers are not applicable for Excise duty)
2)Export Oriented Units(EOU)(customers are not applicable for Excise duty)
3) Customer lying in SEZ(customers are not applicable for Excise duty & Taxes)
am i suppose to create different Distribution Channel so that it will pick up Pricing Procedure which will not have Excise duty conditions & Taxes?
Reg,
Antaa21

Hi,
You are correct. You need to create a new distribution channel to process these type of sales.
Make sure that the Excise conditions are marked as statistical in the pricing procedure, and also maintain JEXT, JCET condition types along with condition records.
EOU sale It is called as deemed exports so you need to create Excise invoice and maintian ARE3.
Hope this helps,
Regards,
Sharan

Similar Messages

SEZ/EOU sale process

in SEZ/EOU sales process we need Excise condition's JEXP, JECP and JS&H is non statistical in the billing document (VF01) but while creating excise invoice (J1IIN) it should become statistical and their is no impact in the a/c document for this excise conditions.
can anyone suggest what is the standard process used in sap for the above scenario.

HI
As per my knowledge , for SEZ/EOU sales Process there is not impact in the accounting part in Invoice level
Are you posting the Excise Duties in Billing Level ? if yes then don't put statistical for those condition types and at the time of Excise Invoice creation level select the Export type: Deemed then system won't generate any accounting entry in J1IIN
Note: kindly Check the client at the time of creating the excise Invoice, What is the export type they will select.

Sale from SEZ unit

Hi,
Whether in the following three scenario Excise, CST and LST would be applicable or not?
Will the second scenario come under Deemed Export?
1. From SEZ plant- Sales to domestic customer
2. From SEZ plant- Sales to SEZ customer
3. From SEZ plant -Sales to Foreign Customer
Regards
Debasish

Hi
In scenario 1:-
The Sales Tax ( VAT if within the state or CST if Region of Plant is different from the Region of Ship To Party) will be applicable and if the sale is from a Manufacturing Plant then Excise duty will be applicable too.
Scenario 2:-
Yes this is the case of Deemed Export and there will be no Sales Tax and this will be Excise Exempted too. However the excise duty will be calculated but there will be no posting of Excise Duty.
Scenario 3:-
This is the case of Export Sale and there will be No Sales Tax. However the excise duty will be applicable as per the govt. rule.
Hope this is clear to you.
Regards
Amitesh

Sale From SEZ Plants- Export, Domestic, Sales to SEZ customers

Dear Folks
Looking information for the followimg Scenarios for Sales :-
1. From SEZ Plant- Export-
- What are the applicable duties and taxes.
- Is there excise applicability.
- For Customs duty is the same is recorded in CIN, I mean some separate document like excise invoice etc., or it is calculated and posted at the time of invoice only.
- What are the document to be submitted to government for declaration and are they from SAP or manual.
-Are the taxes VAT/ CST applicable.
2. From SEZ plant- Sales to domestic Indian Market
- Is the custom duty applicable or it is same scenario as normal sales like Excise invoice and posting.
- Are the taxes VAT/ CST applicable.
3. From SEZ plant- Sales to SEZ customer
- Applicable duties and Taxes
Best Regards
raghu

Dear Raghu,
Did you get anything regarding the above question. I have slight doubt in domestic sales done from SEZ.
As per my knowledge, i think the taxes applicable in domestic sales are as follows:
basic Custom Duty
CVD
Basic custom duty cess
Basic custom duty H.Cess
Special Excise Duty.
I just need to know, if i need to put any routine in front of any condition type to make it flow in any of the registers.
Also, what registers are hit while doing domestic sales.
SAP experts pls respond. it is bit urgent.
Thanks
harris

Sale from 'SEZ'

Hi to all !
I have an issue in sales from SEZ. I need to treate it as the customer is Importing it from outside india as per the SEZ law as given below,
'' e. Any sales from SEZ to DTA (DOMESTIC TARIFF AREA) will be treated as import and import duty will be applicable as per GOI policy. Sales tax will be applicable to SEZ goods as applicable to other imported goods. Same Rules and Procedure will be applicable to SEZ goods as applicable to normal imports."
So, I need to charge the customer for the following same like as in purchase,
step     condition                        rate            value
10     *** VALUE                    100.000
20     Basic Customs Duty             10%          10.000
30     *SUB TOTAL(10+20)     *               110.000
40     CVD                                 14%         15.400
50     ED CESS ON CVD                2%            0.308
60     S&H ED CESS ON CVD        1%            0.154
70     TOTAL CVD (405060)                15.862
80     TOTAL CUSTOM DUTY (20+70)          25.862
90     ED CESS ON Customs duty     2%        0.517
100     S&H ED CESS on customs duty     1%        0.259
110     TOTAL (108090+100)               126.638
120     Additional ED / sales tax     4%         5.066
130     *TOTAL (110+120)     *               131.703
Note: In some scenario they charge sales tax instead of AED.
- Taxinj procedure is used.
- Anybody can help me to configure this requirement.
- No excise invoice required
Thanks in advance.

As far as I am aware off, Sales into DTA will be excisable and not considered as Imports. However the duty to be paid as excise from a SEZ should be equal to the Import duty on the goods.
Again there is concessional duty of 50% involved subject to the meeting of NFEP norms as per the Import policy.
The reason I say this is when you sell from an SEZ, you do it against a Invoice from the duty free area into a DTA whereas in the case of Imports you require to file an Import General Manifest and a Bill of Entry. Clearly his is not applicable here. So the case should be clearly of excise to be paid and not import duty which can be configured in CIN.
Quote from the latest Customs manual applicable to SEZs section 25
Levy of Central Excise Duty on Goods Produced or Manufactured by SEZ Units and Cleared into Domestic Tariff Area :
25.        In terms of section 3 of the Central Excise Act, 1944, the excise duty leviable on goods manufactured in an SEZ unit and cleared into Domestic Tariff Area is an amount equal to the customs duty leviable under section 12 of the Customs Act, 1962 or under any other law for the time being in force on like goods produced or manufactured outside India, if imported into India. Thus, the duty is worked out exactly in the same manner as applicable to imported good
regards
Jude.

Duty exemption pass book in IMPOT

hi
case is like this,
I am using duty exemption pass book licence for clearing goods from custom because i am getting some exemption when i use this lience instead of paying rupees.
first ,i create local PO against lience holder agent for lience ammount with VAT & paying advance against this PO.
second ,i create Import PO mentioning all custom duty.when material arrives at custom,lience holder agent will use that lience i.e.advance paid against local PO to remove material from custom so as to get duty exemption in duty(4%).
Logically i am giving advance payment against one PO & using this advance for clearing material against second PO...this my clients requirement.. Can U tell me How to map in SAP
REG
Roc

hi gurus,
Can u ..Plz
Reg
Roc

Duty exemption pass book in IMPOT PO

hello everyone
In Import P.O. how i can map senario for duty exemption pass book licence for clearing goods from custom .Tax proceduer TAXINN .
Thanks in advance.
Ragards
Raj Jin

hi gurus,
Can u ..Plz
Reg
Roc

Consignment Sales - Problem : Dual Ex. Duty Paid, but recovered only once

Dear Experts,
We are working on Consignment Sales configuration.
we have done all configuration as per standard practice and observing correct postings.
Post Goods Issue, we normally have two seperate postings :
                      Set 1 :
                            Ex. Duty Paid Dr
                            Ex. Duty Payable Cr
Set 2 :
                            Customer A/c Dr
                            E. Duty Recovered Cr
                            Sales A/c Cr
We are using same pricing procedure as that of regular Sales.
But in trials, we are observing that the Excise Duty Paid / Payable is getting posted twice, but is recovered only once.
how do we investigate & correct the error of this dual posting of Ex Duty Paid / Payable. If new pricing procedure is to adopted, what should the change in it?
pleae help and Yes, wish you all a very happy diwali.
Experts, please help.
Edited by: Hussein Merchant on Oct 20, 2009 6:51 AM

Hi,
As per stand.SAP consingment is divided in to four types i.e CF, CI, CR, & CP.
When you are snding goods to your consingment stock which is in costumer premices, you have to pay Excise duty while moving the goods from yuor manufacturing plant.
so at that time only you have to pay Excise duty. i.e at the time of consingment fill up only.
At the time of consingment issue , your actual sales happend means your actual stock will decrease & sales happend.
See first you have to check from your business that your consingment fill up price & consingment issue price is same or differnt.
for example if you are removing goods from your manufacturing plant at price Rs.100/- that time you have to pay Excise duty Rs. 14/- only.
At the time of Consingment issue if you are saling the same goods may be at the price of Rs. 150 then you have to pay excise only for Rs.50 only . In most of the cases both CF & CI prices are same so you have to create two pricing procedure in which at the time of CF only excise will get calculated & postings will be happend. At the time of CI no excise will get posted only it will show or get printed on invoice , no postings will be hapend. You can do this by making changes at condition type level.
Please feel free to contact me if still you have any doubt.
Thanks
Devdatta.

Sales return without excise duty

How to account the sales return material that are already invoiced with out Excise duty. Please help with step by step process in making sales return material to stock entry or unrestricted stock for further sales of the return material.
Thanks in advance.

1. Create return order with reference to orginal bill document no. all details will be copied from it.
2. Do post goods receipt(VL01N).
When it is received,Move stock to production storage location,You can rework it & move stock respective storage location
for resale.
3. Do credit memo with reference to return order using VF01.

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

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

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

EOU : duty paid transactions

Dear All ,
We have EOU unit where most of the Transaction are duty free.
But we have few items where we have paid duty :
Pl guide for the report where we can see the transacion / items in which have paid duty ?
regards,

Hi,
for GTS the only relevant information for inventory/warehouse management is the customs status of the goods,
what means DUTY PAID or DUTY UNPAID.
DUTY PAID menas, you have already declared the goods for free circulation and customs has not longer any interst in this godds.
For DUTY UNPAID means, that these goods are under customs control, and import duties, and taxaes have not been paid for these goods. This is typically for godds in a customs warehouse,e.g. type D in Europe the case.
You can also store duty unpaid and duty paid goods in one warehouse, but you need to know how many goods are in which status - and this information is hold by GTS.
hope that helps,
regards,
Ralf

Sales to SEZ - Export Documentation

Hi
Can you please clarify on the following points.
a. In J1iin, system is picking only Deemed Exports in Invoice type. Is this correct?
b. Since the SEZ customer, is not to be charged any duties or levies, no excise conditions are calculated. Therefore, no excise entries will flow in excise document and as well as ARE1 document.
I am new to this process. Any information that you provide will be very helpful.
Regards
R.Srinivas

Dear Lakshimipathi,
The following are information provided by the customer, who is in a SEZ.
a. No excise duties are to be levied
b. No CST to be levied
c. No Service tax to be levied
d. Party will not issue CT3
e. Shipment to be against ARE1
This would mean that
1. The condition types needs to be set to statistical, as BED, ECS and SECESS needs to flow into j1iin, as no excise values should be posted.
Presently, it is noted that:
1. In J1iiN, when invoice type is selected, system gives the alternate as DEEMED EXPORT. It is not allowing to select BOND, NO BOND or LUT.
2. If the customer is however not in India, system allows options for the others.
3. However, we are able to create, ARE1 with reference to the above excise invoice raised.
Reading other posts, it is asked to make the condition type statistical.
I hope I am reasonable in my assumptions. It will be of help if you can advice more details.
Regards
R.Srinivas

Regrding ARE-1 for SEZ sale in india

Hi,
My customer is currently doing ARE-1 sale in SEZ for domestic customer. can any body pls elaborate what settings i need to do for this in configuration, because as per my knowledge for domestic export we can use ARE-3.
Is there any way to configure SEZ sale with ARE-1 in SAP SD

Hi,
IS it possible for us to configure SEZ sale in Export with ARE-1?
Yes you can as like normal export under ARE 1, Because there in no any configuration control for SEZ in system, you can follow normal export process
Sales order >> delivery >> invoice >> excise invoice >> create ARE 1
kapil

100%EOU

Dear All,
My client is 100% EOU plant is situated in India. We have DTA (Domestic sales) and Export scenarios. Apart from Excise duty (14%,2% and 1%) we need to capture i.e. 5% Costumes duty, 2% Education cess and 1% Hig.Edu.cess.
These three additional for EOU.
How I have to treat these conditions types?
is it Excise duty?
If it is excise duty how I have to maintain in DTA and Export sales Pricing procedure?
Thanks with Regards,
Srikanthraj

Hi Sreekanth,
As the information shared is copied from thread list itself, so please go through other thread too, where in u may get more inputs regarding your query.
NEED NOT BE AWARDED.
You can do domestic sales from 100% EOU which we can call it as DTA (Domestic Tariff Area) sales. In this scenario, different duty component will have to be levied if you are selling indigineous and imported. For both, duty structure will vary
DTA (DOMESTIC TARRIF AREA)
Please find the link relevant to DTA:
http://www.business-standard.com/common/news_article.php?leftnm=sme&autono=318129
I feel the qnswer to this query will also help you.
"What are the facilities for Domestic suppliers to Special Economic Zone
Supplies from Domestic Tariff Area (DTA) to SEZ to be treated as physical export. DTA supplier would be entitled to :
Drawback/DEPB
CST Exemption
Exemption from State Levies
Discharge of EP if any on the suppliers
Income Tax benefit as applicable to physical export under section 80 HHC of the Income Tax Act"
Rgds,
vijayashree

Cin in sales and distribution

hi,
can any one tell me the role of CIN in sales and distribution, if possible
post some material regarding CIN configuration.
my e-mail id: [email protected]
thank you.

Hello Sriram,
CIN in other words "Country Version India" is basically used for taxation purposes. Every country has its own tax system..........so SAP has come up with its own country versions for taxation like CIN for India.
<b>The following is the detailed notes on CIN:</b>
Basically Cin is divided in to two types:
1. TAXINJ - Is a Routine Based that is used in the condition types. it will work on the logic what ever is there in the Routine.
2. TAXINN: - Is a condition Record based. Means we have to create condition records for each and every condition type that you are going to use in the Pricing Procedure.
Since Version 4.7 this TAXINN came into picture and start using this.
And one of the important point is since 4.6 c CIN comes a separate package. But after introduction of 4.7 Version, CIN is coming the SAP Package itself and even in the Customer Master Record also we will find the CIN Icon.
Basically 4 types of Pricing Procedures are used in CIN and are as follows:
1.JDEPOT - Depot Sales
2.JEXPOR - Export Sales
3.JFACT - Factory Sales
4.JSTKTR - Stock Transfer
Country Version India comes with four pricing procedures as follows:
JINFAC (Sales from manufacturing plants)
JINEXP (Export sales)
JINDEP (Sales from depots)
JINSTK (Stock transfers
CIN:
IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings >
Maintain Excise Registrations
Use
In this IMG activity, you maintain the data relating to your excise registrations.
Activities
enter each of your excise registrations, specifying a four-character code for each
Excise Registration IDs
In this activity, you maintain excise registration IDs. You create one ID for each of your business's excise registrations.
Activities
For each excise registration in your business create a registration ID, and state:
Which taxes the registration covers (additional excise duty, special excise duty, and cess)
Fields for any taxes that are not covered will be hidden in transactions involving excise duty.
The maximum number of items to be printed on each excise invoice
Whether you are allowed partial CENVAT credits
Maintain Registration ID NUMBER, Excise code number, excise registration number
Excise Registration Number
A number assigned to each premises or location that has registered as a manufacturer with the excise authorities.
Every entity with an excise registration number is required to keep its own excise books.
ECC Number
Specifies the organization's ECC number.
Excise Registration Number
A number assigned to each premises or location that has registered as a manufacturer with the excise authorities.
Every entity with an excise registration number is required to keep its own excise books.
Excise range: Specifies the excise range in whose area the excise registration is located.
Excise Division
Specifies the excise division in whose area the excise registration is located.
Excise Collectorate
The code of the excise collectorate in whose area the excise registration is located.
Indicator for confirming AED usage
Additional Excise duty Percentage. These are leviable under the additional duties of excise act. These duties are in addition to basic excise duty and special excise duty.
Example
Additional Excise duty is leviable in case of textile products, tobacco and sugar.
Similarly for SED CESS
Number of Items in Excise Invoice
Shows the maximum number of line items that the authorities allow per excise invoice.
Dependencies
This information is used when you create an excise invoice in Sales and Distribution (SD) for factory sales and for other movements.
This information is used to split the transfer postings' items into multiple subcontracting challans.
Excise register set description
Description of the excise registers set.
Partial CENVAT Credit
Indicates that the excise registration ID is allowed to credit only a portion of its input excise duty to its CENVAT account.
Dependencies
When you post a goods receipt, the system splits the input excise duty on the material into its deductible and nondeductible amounts. It posts the deductible duty to the appropriate CENVAT account, and adds the nondeductible duty to the material value.
This information is also shown when you post the vendor's excise invoice.
Maintain Company Code Settings
Use
In this IMG activity, you maintain the data relating to your company codes.
Document Type for CENVAT Postings
It controls, which document type the system uses when making CENVAT postings in Financial Accounting (FI). Here ED is document type for cenvat posting.
Indicator for providing debit account overwriting
Debit Account Overwrite Indicator. X - Indicates debit accounts can be overwritten. Use In excise journal voucher transaction. It provides the flexibility to the user to enter the debit account of his choice depending on the nature of transaction.
Automatic balance Indicator
Excise year start month
The calendar month marking the beginning of the excise year
Use
this start month represents the month for the start of the excise invoice number range. The month 04 is entered here indicating April of the calendar year as the start month for excise invoices. Any change by the Excise authorities regarding start month should be taken care of by an entry in this field and initialization.
Excise invoice selection procedure
Excise invoice selection type. To indicate the method opted by the company for selecting the excise invoice. It can be either earliest or latest invoices that were received.
Number of excise invoices to be selected
indicates the number of excise invoices that needs to be selected in the excise invoice selection.
Days to be considered for excise invoice selection
Number of days from document date for excise invoice selection.
Example
If the value of this field is 20 and today is 28-03-97. The excise
invoice selection will show the related invoices only for the
period 08-03-97 to 28-03-97.
Document type for TDS FI posting
Financial accounting document type for TDS posting.
Document type for FI posting on Utilization
Financial accounting document type for TDS posting.
Indicator for item level excise duty round off
This indicator is to be used for deciding whether Item level excise duty amount rounding off is required during procurement cycle. If marked 'X' then the excise duty amount will be rounded off to the nearest rupee at the Purchase order level. This will not round off the CENVAT credit to be taken. If the duty amount is less than one rupee then no rounding is done
Rounding off of Excise duty for outgoing excise invoice
You can round off the Excise amount to be paid during an outgoing Excise invoice by marking this indicator as 'X'. The rounding is done at the item level for each item where the amount is greater than 1 Rupee.
Immediate Credit on Capital Goods
Instructs the system, when you verify a goods receipt for capital goods, to immediately post half of the input excise duty to the appropriate CENVAT accounts.
The rest is posted the CENVAT on hold account, for use in the following year.
CVD Clearing Account
Specifies which G/L account the system credits when you take a CENVAT credit on countervailing duty in the Incoming Excise Invoices transaction.
Exchange rate type
Key representing a type of exchange rate in the system.
Use
You enter the exchange rate type to store different exchange rates.
Example
You can use the exchange rate type to define a buying rate, selling rate, or average rate for translating foreign currency amounts. You can use the average rate for the currency translation, and the bank buying and selling rates for valuation of foreign currency amounts.
Exchange rate type to be used for Export excise duty converts
When you are creating an Excise invoice for export sales then the exchange rate for duty calculation will be picked up using this Exchange rate type.
Maintain Plant Settings
Use
In this IMG activity, you maintain excise information relating to your plants.
Plant Settings
In this activity, you maintain excise information relating to your plants.
Activities
For each plant:
Specify whether it is a manufacturing site or a depot.
Assign it an excise registration ID.
You can assign the same ID to more than one plant, if required.
Depot
indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation.
Number of goods receipt per excise invoice.
Multiple GR for one excise invoice, Single credit
Multiple GR for one excise invoice, multiple credits
Maintain Excise Groups
Use
In this IMG activity, you define your excise groups. For each excise group, you can also control how various excise invoice transactions will work.
Excise Groups
In this activity, you define excise groups. An excise group allows you to maintain a separate set of excise registers and excise accounts. The RG 23A, RG 23C and PLA serial numbers are created for an excise group.
Recommendation
Under normal circumstances, excise authorities require every business to maintain only one set of excise registers and one set of accounts. But through exemption from the authorities, multiple books can be maintained.
If your company has only one set of excise registers, then you need to maintain only one excise group.
Activities
1. Create one excise group for each set of registers that you need to keep.
1. Assign the excise groups to plants.
2. Maintain whether this Excise group is for a depot or not.
3. If you receive only one consignment for an Excise challan then you can leave GR's per EI as blank. If you receive multiple GR's for a given Excise challan and would like to avail multiple credit mark the GRs per EI as 'Multiple GR's for one excise invoice, multiple credit'. Alternatively if you want to avail the credit only after all the goods receipts have been made mark it as ' Multiple GR for one excise invoice, single credit'.
4. If you want to automatically create Excise invoice during Sales cycle at the time of billing the tick the indicator 'Create EI'
5. During depot sales if you do not want to do RG23D selection and posting separately and would like to complete RG23D selection in one step mark the indicator 'RG23D Auto post'. This will post the selected records into RG23D automatically. You cannot cancel the selection later.
6. If the indicator 'Default GR qty' is marked system will default the Excise challan quantity on to the Goods receipt if the Excise invoice number is given in the pop-up.
7. If the indicator 'Folio no creates' is marked system will generate Folio numbers for RG23D during receipt of excise invoice into depot.
8. 'Automatic posting' when ticked will post the Excise invoice other movements automatically along with creation in single step.
9. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt of material into Blocked stock.
10. 'Create Part1 for STO' when marked will create a Part1 during the receipt of material through inter plant transfers.
11. 'Create Part1 for consumption stock' when marked will create a Part1 during the receipt of material into consumption stock.
Excise Group
Governs which set of excise registers a business transaction will be included in.
Following is the relation between excise group, plant and registration.
Dependencies
In define excise groups in Customizing.
Then, in transactions involving excise duty, for example, when you post a vendor's excise invoice, you specify which excise group you are using. This information tells the system which G/L accounts to post the excise to.
At the end of the period, when you come to prepare your excise registers, you create different sets for each excise group.
Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for goods receipt and invoice generation.
GR Per Excise Invoice
Multiple GR for one excise invoice , Multiple credit
Multiple GR for one excise invoice , Single Credit
Create Excise Invoice Automatically
Instructs the system to automatically create a Sales and Distribution (SD) excise invoice immediately you create a commercial invoice or a pro forma invoice.
The excise invoice is created in the background.
Dependencies
If you want to make use of this function, you must also define the default plant, excise group, and series groups in Customizing for Sales and Distribution (SD), by choosing Excise Group - Series Group Determination.
RG23D Sales Creation and posting option
RG23D Automatic Option if selected will create Depot excise invoice by posting the selection of excise invoices in single step.
If this is not selected then you need to separately do RG23D selection followed by PGI and then RG23D verification and posting.
If you need automatic posting of RG23D selection then the Post Goods Issue should have been completed before running RG23D selection.
Default excise qty in GR
If this indicator is ticked then while doing Goods Receipt using 'MB01' system will default the excise invoice quantity on to the Goods receipt document.
Folio number for depo
Posting
If this indicator is marked then while creating Excise invoice for other movements system automatically does the Verify and Post. You need not separately Post the excise invoice
Also we can set indicator for creation of part 1 for:
Blocked stock
Stock transport order
Consignment stock
Maintain Series Groups
Use
In this IMG activity, you define the different excise series groups within your company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents.
Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. But each of these series has to be declared to the excise authorities.
Activities
Define excise series groups based on type of outgoing document
Assign series group to excise registration ID
If no financial postings are required for an Excise invoice in this seris group then you tick the 'No utilization' indicator.
If the CENVAT has to be paid immediately and you need not wait for the Fort nightly payment then mark the 'Immediate Utilization' indicator.
Example
You could define two series groups, group 001 for excise invoices, and group 002 for 57 F4 documents.
No account postings for CENVAT in sales cycle
No utilization Flag
If you do not need any CENVAT utilization for an excise invoice but would like to just generate an excise invoice then you need to mark this indicator.
IF the flag is checked then system will create an Excise invoice in the given Series group but there will not be any account postings or Part2 postings.
Immediate Utilization of CENVAT
Specifies that when you create an excise invoice, the system immediately pays the amount from CENVAT and creates the Part II entry. Such invoices will not be listed for fortnightly utilization.
If you have both fortnightly and immediate utilization for the same excise group, the account determination within CIN IMG should point to the ED interim account.
Account determination for immediate payment will be done exactly the same as being done for fortnightly utilization program.
Maintain Excise Duty Indicators
Use
In this IMG activity, you maintain the excise duty indicators.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty >
Select Tax Calculation Procedure
Use
In this IMG activity, you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India.
If you use condition-based excise determination, use a copy of the tax procedure TAXINN.
If you use formula-based excise determination, use a copy of the tax procedure TAXINJ.
This tax procedure also supports condition-based excise determination, so that you can work with both concurrently.
We strongly recommend that new customers use condition-based excise determination. Note that once you have started using a tax procedure, you cannot switch to another one, otherwise you will not be able to display old documents.
Maintain Excise Defaults
Use
In this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formula-based excise determination.
Activities
If you use condition-based excise determination, fill out the CVD cond. field and leave all the others blank.
If you use formula-based excise determination, fill out all of the fields as follows:
Enter the tax procedure and the pricing conditions that are relevant for excise tax processing.
Specify the purchasing and sales conditions types used for basic excise duty, additional excise duty, special excise duty, and cess.
Specify the conditions in the sales order that are used for excise rates.
Specify the countervailing duty condition type used for import purchase orders.
See also
SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management (MM) -> Condition-Based Excise Determination and -> Formula-Based Excise Determination.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty >
Condition-Based Excise Determination
Use
When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique.
Features
The standard system comes with two tax calculation procedures. TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination. Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.
Since the exact rates of excise duty can vary on a large number of factors, such as which vendor you purchase a material from, or which chapter ID the vendor stocks the material under, you create condition records for every sort of excise duty.
When you come to enter a purchasing document, the system applies the excise duty at the rates you have entered in the condition records.
Activities
Customizing
IndiaMake for Logistics General, by choosing Taxes on Goodsthe settings in Customizing Basic Excise Duties Using Condition Technique and Movements Account Settings Determination.
These activities include one activity where you define a tax code for condition-based excise determination.
Master Data
Create condition records for all excise duties that apply, and enter the tax code for condition-based excise determination in each.
Day-to-Day Activities
When you enter a purchase order or other purchasing document, enter the tax code for condition-based excise determination in each line item. The system then calculates the excise duties using the condition records you have created.
When the ordered materials arrive, you post the goods receipt and the excise invoice. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.
Creating Condition Records for Excise Duty
1. In the command field, enter FV11 and choose .
2. Enter the condition type that you want to create a condition record for and choose .
The Key Combination dialog box appears.
3. Select the combination of objects that you want to create the condition record for.
On the dialog box, Control Code means "chapter ID."
So, for example, to create a condition record for a tax that applies to a combination of country, plant, and chapter ID, select Country/Plant/Control Code.
4. Choose.
5. Enter data as required.
In the Tax Code field, enter the dummy tax code that you have defined.
6. Save the condition record.
Formula-Based Excise Determination
Use
When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.
Prerequisites
In order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the data on the Maintenance screen, which you can MasterExcise Rate access from the SAP Easy Access screen by choosing Indirect Taxes Excise Rate Maintenance.Data
You maintain the following types of data:
Plant master data
You assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone.
See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit).
Vendor master data
For each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry.
For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.
Customer master data
similarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status.
Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator.
Material master data
each material is assigned a chapter ID.
Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.
If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.
Activities
Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows:
1. Looks up the customer master data to see what status you have assigned the customer.
Let's assume you've assigned the customer status 3.
2. Looks up the plant master data to see what status you have assigned the plant.
Similarly, your plant has status 2.
3. The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indictor is for customer status 3 and plant status 2: It is 7.
4. The system determines the chapter ID of the ball bearing for the plant.
Lets assume the chapter ID at plant for the ball bearings is 1000.01.
5. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under status 7.
Define Tax Code for Purchasing Documents
Use : In this IMG activity, you define a tax code for the purposes of calculating excise duty when you enter purchasing documents.
Only carry out this activity if you use condition-based excise determination.
Activities: Create a new tax code, and set the tax code type to V (input tax). Do not make any other settings for it.
Assign Tax Code to Company Codes
Use
In this IMG activity, assign the tax code for purchasing documents to the company codes where it will be used.
Only carry out this activity if you use condition-based excise determination.
Classify Condition Types
Use
In this IMG activity, you specify which condition types you use for which sort of tax. Note that this only applies to condition types that you use with the new excise determination method.
The system uses this information when you create a document from another one. For example, when you enter an incoming excise invoice from a purchase order, or when you create an outgoing excise invoice from a sales order, the system determines the various excise duties in the excise invoice using the information that you have entered here.
In addition, when you create a purchasing document, the system only uses the condition types that you enter here.
For taxes on purchases, use the condition types contained in the tax procedure.
For taxes on sales, use the condition types contained in the pricing procedures.
Standard settings
The standard system comes with sample settings for the tax calculation procedures and pricing procedures.
Use these settings as a basis for your own.
IMG > Logistics - General > Tax On Goods Movement > India > Account Determination
Define G/L Accounts for Taxes
Use
In this IMG activity, you specify which G/L accounts you will use to record which taxes.
Requirements
You have set up G/L accounts for each of the processing keys listed below.
Activities
Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3 are used as clearing accounts during excise invoice verification.
VS1 (basic excise duty)
VS2 (additional excise duty)
VS3 (special excise duty)
VS5 (sales tax setoff)
MWS (central sales tax)
MW3 (local sales tax)
ESA (service tax)
ESE (service tax expense)
Specify Excise Accounts per Excise Transaction
Use
In this IMG activity, you specify which excise accounts (for excise duty and CENVAT) are to be posted to for the various transaction types. Enter all the accounts that are affected by each transaction type.
If you use subtransaction types, enter the accounts for each subtransaction type as well.
Activities
Transaction type UTLZ is used for determining accounts only while posting excise JVs and also if the payment of excise duty has to be done fortnightly.
The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction types of GRPO, EWPO, and TR6C for determining the CENVAT and PLA accounts. There is no separate transaction type for fortnightly payment.
Example
Excise TT DC ind Account name
GRPO CR CENVAT clearing account
GRPO CR RG 23 BED account
GRPO DR CENVAT on hld account
Specify G/L Accounts per Excise Transaction
Use
In this IMG activity, you assign the excise and CENVAT accounts to G/L accounts.
When you come to execute the various transactions, the system determines which G/L accounts to post to by looking at the:
Excise group
Company code
Chart of accounts
Furthermore, if you want separate account determination settings within an excise group, you can also use sub transaction types.
Requirements
You have already:
Defined the G/L accounts
Defined the excise groups
Maintained the transaction accounts
Activities
For each excise group, assign the excise and CENVAT accounts to G/L accounts. For most businesses, one set of accounts will suffice for alltransactions.
Note
You need not remit the CENVAT to the excise department immediately, so maintain the credit account for transaction type DLFC as an excise duty interim account. This will be set off when you remit the duty.
Config setting needed to be done in order to get the Excise Details Screen in Material Master.
Even though this functionality is available in enterprise version, a small config step has to be made in Screen Sequences for Material Master.
Following document helps you to do this configuration.
Logistics General 1. Go to IMG Define Structure of Data ScreenMaterial Master Configuring the Material master Screen Sequence. for each
2. Select your screen sequence. Usually it would be 21. Select the same and click on Data Screen in the left frame.
3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21and Scrn 15, which is Foreign Trade: Import Data. Select the same and click on Subscreens in the left frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same. Click on tab view subscreen and ensure that the subscreen is blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 0001 and instead add SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.
6. Save the setting.
7. Create a Material Master and check whether in Screen Foreign Trade Import, Excise related subscreen appears.
MASTER MAINTENANACE.:
Transaction Code : J1ID
1. Chapter id Description Master : - Excise chapter id and description as per law will be maintained in this master. With out maintaining the chapter id in this master we can not proceed to other masters. Maintain the chapter id in format xxxx.xx
2. Material / Chapter id combination :- Excisable materials with chapter id details for a plant is maintained in this master. In case of Raw and Packaging materials we will be maintaining for branch plant only. But in case of FG even CPs details will be maintained. If the material is a base material used for subcontracting then give a tick in the check box in the coloumn subcontrs. Choose relevant material type from drop down menu. In the coloumn GR-xref, select Multiple GR for one Excise invoice-Multiple credit from the drop down menu. Enter 1 in the declared coloumn. With out this value in this coloumn the material will not be subjected to excise procedures.
3. Material assessable Value:- In this master, plant wise (including CP plants) assessable values for FG are to be maintained. MRP per CBB and per ATC will be enetred in Net dealer price coloumn. Assessable value per CBB and per ATC will be given in Assessable value coloumn with effective date in the valid from coloumn. Since it is not possible to maintain differential MRP for the same SKU in this master, the MRP and Assessable value details for despatches from branch plant will be maintained in SD module. In this case we should not maintain the details in this master for branch SKUs and details will be maintained only for CPs.
4. CENVAT determination :- Plant wise MODVAT input materials will be listed in this master with one of the FG as the out put material. This master will be maintained for branch plants only. If the input material is not maintained in this master MODVAT credit can not be availed.
5. Vendor Excise details: - Vendor Excise details such as ECC no, reg no, Exc.range, Exc.div, Exc.coll, CST, LST nos, PAN no will be maintained for all Excisable materials vendors. In the coloumn Exc.ind.ve enter 1. With out this value in this coloumn the MODVAT procedure will not take place. We are not maintaining SSI status in this master.
6. Customer Excise details:- For such of those customers for whom invoices are to be raised from branch plant details are to be maintained in this master. The excise details can be blank for customers bur CST and LST no are to be entered. In the coloumn Exc.Ind.Cus. Enter 1. With out this value in this coloumn, Excise invoice will not be generated for the customer.
7. SSI rate: - We will not be maintaining this master. At the time of capturing the MODVAT details we can enter actual duty details as per the Excise invoice received from the Vendor.
8. Excise indicator for Plant:- Excise details such as ECC no, Range etc. for the branch plant will be maintained here. In the coloumn Exc.ind.co maintain a value1
9. Excise indicator for plant and vendor and Excise indicator for plant and customer: - Initial Configuration masters need not be maintained by users.
10. Excise tax rate: - Chapter id and tax rates combination is maintained in this master. In the ExcInd coloumn enter1.
11. Cess rate:- Cess rate if applicable will be maintained in this master.
12. Exceptional material excise rates:- If differential excise rates are applicable for a material falling under same chapter id , this master will be maintained.
13. Quantity based AED & SED: - If applicable the details will be maintained here.
Some of the check points pertaining to Masters.
For raw materials, the assessable value will be picked up from PO.
For FG, the assessable values only for CPs are to be maintained in this master.
Excise indicator in Vendor / Customer excise details is mandatory.
Chapter ID, material Chapter ID and Excise tax rates - should contain all the relevant tax details.
CENVAT determination correlates the raw material to finished goods. All new materials are to be added without fail.
Material Chapter ID - for conversion activity (only base matl.) sub-contracting indicator has to be checked.
Material Chapter ID- excise indicator is to be ticked.
For removals from branch plant (raw material/finished goods), CST/LST numbers have to be given in the customer masters, which is used in Excise invoice printing
Path is : IMG - Logistics General - Tax on goods movement - India
http://help.sap.com/saphelp_47x200/helpdata/en/5a/d34a9f544811d1895e0000e8323c4f/frameset.htm
<b>Reward if helps</b>
Regards,
Sai

Sale to SEZ,EOU,Duty Exemption zone

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