Tax & Excise in Third Party Sales

Hi Friends,
As per Std.SAP in third party Sales Scenario a PR will be automatically created when we save the SO & out of that we create a PO.
Now kindly provide clarifications for the below query's
1. When we create a PO with respect to this PR (Is taxes & excise applicable) ?
2. How we have to maintain this Third Party Material in J1ID inorder to determine the excise rates for Calculation?
3. As per this Scenario our Vendor will deliver the goods to our customer & we will do a Statistical GR which will post to the consumption & GR/IR clearing accounts. Now what will the impact in Excise side as our material in the PO is subjected to excise?
4. Do we take the Cenvat credit as in case of Raw materials??
Since I am not clear in the excise & taxes part of this Scenario. Please help me..
Regards,

Excise Duty: Excise Duty is applicable only in an manufacturing scenario in India. I will illustrate with sone examples, as under:
Example 1:
Sales from Plant 'A', material 'B' (manufactured product) to Customer 'XYZ'.
Customer XYZ orders material 'B', which is supplied from plant 'A', say quantity 1. Sale Base Value is Rs. 100/-, Basic Excise Duty 10%, Education Cess 2%, Higher Education Cess 1%, Vat 12.5%
(Excise Duty will be applicable and reflect as a separate component in above scenario)
Example 2:
Stock Transfer from Plant 'A', material 'B' (manufactured product) to Plant 'D'.
Plant 'D' has a requirement for material 'B', which is supplied from plant 'A', say quantity 1. Assessable Value is Rs. 80/-, Basic Excise Duty 10%, Education Cess 2%, Higher Education Cess 1%
(Excise Duty will be applicable and reflect as a separate component, but Vat will not be applicable in above scenario)
Example 3:
Sales from Plant 'A', material 'B' (Trading product) to Customer 'XYZ'.
Customer XYZ orders material 'B', which is supplied from plant 'A', say quantity 1. Sale Base Value is Rs. 120/-, Vat 12.5%
(Excise Duty will not be applicable in above scenario)
Regards,
Rajesh Banka

Similar Messages

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    If address data for the ship-to party is changed in the sales order in third-party business transactions, the changed data will automatically be passed on to purchase requisition and also to the purchase order ,if one already exists. In the purchase order, you can display the address data for the ship-to party in the attributes for the item.
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    If you have activated billing-relevance indicator F for item categories in Customizing, billing can refer to the goods receipt quantity instead of the incoming invoice quantity.
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    Process Flow for 3rd Party Sales
    Customize the third party sales in summary:
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    assign Purchase org to plant,
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    8. Goods issue
    9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.
    10. Billing *--
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