11 Replies Latest reply: Oct 22, 2008 2:40 PM by Naarayanaa T RSS

Excise duty pass on

Sudhir R
Currently Being Moderated

Dear SAP guru's

 

    I have a scenario, my customer purchases raw material with excise. and he sells the raw material at higher rate but the duty passing must be equal to the excise duty paid to the vendor. Kindly let me know if any one faced such problem

 

regards,

 

Sudhir

  • Re: Excise duty pass on
    Priyanka M. Matcheswala
    Currently Being Moderated

    Dear Sudhir,

     

    that happens in case they maintain a RG23D register. where raw materials are purchsed ans sold at a higher value but, Excise is calculated only on what was paid.

     

    Kindly check and let know,

     

    Regard;s

     

    Priyanka

  • Re: Excise duty pass on
    G Lakshmipathi
    Currently Being Moderated

    Dear Sudhir

     

    I have a different opinion on your comments "the duty passing must be equal to the excise duty paid to the vendor".

     

    To the best of my knowledge, duty should always  be calculated on the selling price only.  Please ask your client to check with Excise people.  This is my personal experience.

     

    Nevertheless, for that purpose, if you maintain the value at which your client bought the component in J1ID under "Material Assessable Value",  for that value only, duty will be calculated.

     

    For example, your client bought the component @ INR 100.00 and the selling price is INR 200.00.  As per your requirement duty should be calculated only on INR 100.00 which is possible if you follow as explained above.

     

    thanks

    G. Lakshmipathi

    • Re: Excise duty pass on
      Sudhir R
      Currently Being Moderated

      Dear Laxmipathi,

            Actually they are selling raw material with out any manufacturing but on that raw material they add on some price with margin and sell to the customer. But if the customer is also a manufacturer we have to pass on the same excise duty to that customer at which the raw material is purchase - I have cleared from my CLient also.

       

      dear Priyanka,

           I am working on Factory sales and not on Depot sales. Only in Depot sale RG23 D is updated and the passing on of Duty is done.

       

      regards,

       

      R.Sudhir

      • Re: Excise duty pass on
        Priyanka M. Matcheswala
        Currently Being Moderated

        Right sudhir,

         

        In that case, as a standard practice, if not a depot, Excise gets calculated on the Selling Price/Assesable value, even if it is a Raw material.

         

        And they will have to enter it manually. there is no link for the same.

         

        Regard's

         

        Priyanka

        • Re: Excise duty pass on
          Sudhir R
          Currently Being Moderated

          dear Priyanka and Laxmipathi,

           

          As well the assessable value changes according to the purchase done. so every sales order level they cannot calculate the value and mention it in J1id. Like in Rg23D is there any setting from where we can pick up the value according to the Purchase order.

           

                

          regards,

           

          R.Sudhir

          • Re: Excise duty pass on
            Priyanka M. Matcheswala
            Currently Being Moderated

            I doubt that Sudhir.

          • Re: Excise duty pass on
            G Lakshmipathi
            Currently Being Moderated

            Dear Sudhir

             

            Yes I also have experience in manufacturing industry where they procure ROH and sell it at a higher margin but they follow what I suggested above.

             

            Since you say that the purchasing price will keep fluctuating regularly, my suggestion would be have your condition type VPRS next to PR00 and above JMOD.  Assign the step number of  VPRS to JMOD condition type.

             

            Assuming that the ROH will have MAP,  this should work for you, though I have not tested this.

             

            thanks

            G. Lakshmipathi

            • Re: Excise duty pass on
              Sudhir R
              Currently Being Moderated

              Thanks for you suggestion Laxmi but what you are telling is in TAXINJ but i am working on TAXINN procedure where we dont maintain any thing in the OBQ3 FI procedure.

               

              Kindly guide me in TaxINn

               

              regards,

               

              R.Sudhir

              • Re: Excise duty pass on
                G Lakshmipathi
                Currently Being Moderated

                Dear Sudhir

                 

                Instead of JMOD which is used in TAXINJ, you can use the condition type which is used in TAXINN.

                 

                thanks

                G. Lakshmipathi

              • Re: Excise duty pass on
                Muralidhar Shetty
                Currently Being Moderated

                Hello Sudhir,

                 

                    If you want excise duty to be calculated on the price which is procured and not sold.

                Then, my suggestion would be please create a new condition type which is copy of PR00

                and then maintain the condition record for that (price at which is procured) and ensure that

                BED should be calculated on this price. Please note that as this is not your standard price.

                system will not update the the EXBAS field in the table J_1IEXCDTL. So you have to use

                the user exit to fetch the Base value from this condition type while creating the excise

                invoice. You can find the user exit in the programme SAPMJIIN.

                 

                I hope this will be helpful for you.

                 

                Best Regards

                MBS

                • Re: Excise duty pass on
                  Naarayanaa T
                  Currently Being Moderated

                  In the case of DEPOT, BED, ECS, SHcess, ADC would be passed on to the customer, the value that need to passed on is same as values which are captured during goods receipt.

                   

                  Please refer to the jdepot pricing procedure, where in alternative contidion type 356 would be maintained for ECS, SHCess . Here whatever values calculated in j1ij will be passed on to the billing.

                   

                  Make sure that in the plant setiings in tax on good movement, depot indicator is activated.

                   

                  In case of domestic purchase based on the tax code values will be passed. But the issue will raised in the case import, where zero value tax code will be maintained where manual entry of excise values need to be updated.

                   

                  All the depot transaction and stock update will go to rg23d register.

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