Excise credit-Machinery-Second Vendor

[former_member187989]

Dear all,

How to take excise credit for machinery purchased from a vendor(A),Who actually purchase it for us from another

vendor(B),Vendor(B) directly delivers material to us,Vendo(A) give us delivery note with invoice for full amount(including excise duties with no tax break up not mentioned in bill,Additonal information is in bill mentioned as "No tax against Form 'C' E1 Transaction"),but with no gate pass,for this,he is giving proforma invoice of vendor(B) from where Vendor(A) is purchased,in invoice they have given excise duties break up with CST.Here vendor(A) we need to pay.

Where we can take excise credit for this case ?

How to do GR with excise ?

Thanks with regards

Jeyakanthan

[former_member187989 · Accepted solution]

Awaiting replies...Any one come across similar business case,please share your valuable inputs.

[Former Member · Accepted solution]

In my case i have done the same way as said by Kunal

same problem we faced of having vendor B name in excise migo , we solved it be putting vendors B name in shiped from in MIGO excise tab header

so that it will be cleare that this excise is shiped for Vendor B.

Other issue we faced was about the amount of excise it shoud not be inventorised

for this we have creted one new subtransaction type E1 and in GRPO E1 modvat clearing account was E1 clearing account

at the time of MIRO we will put the amount less the amount of excise

and in GL account tab we will put the E1 clearing account with excise amount CR

thus excise amt would be removed from inventory

hope this will solve ur issues

if not

tell in detail what is ur exact requirement

with amount and account entries required

with detail amount in vendor A and B invoice and process.

[former_member187989 · Accepted solution]

Thanks for sharing your experience,Here i'm giving bill details

Vendor A given delivery note cum invoice for INR 86171 with

Vendor B proforma invoice with 

Assesable value            INR 70010
Excise Duty-10%           INR    7001
Ed.Cess-2%                   INR      140.02
Hed.Cess-1%                 INR        70.01
Subtotal                          INR   77221.00
CST 2% Form C              INR     1544.42
Total(Rounded off)          INR  78765.00

Here i wil capture excise base value as 70010,other entries as per dealer procedure & also migo there is no problem,

But problem happens while raising miro,vendor A adds profit of INR 7406,I will enter base amount as 70010+7406,

bill value is 150 INR more than orginal bill value.

How to solve this issue ?

Edited by: Jeyakanthan A on May 24, 2010 10:14 AM

[Former Member · Accepted solution]

Hi

the eg u have given looks u are not getting excise invoice from vendor b its just a profoma invoice

so against profoma invoice u cant take excise credit

if he is sending excise invoice then u can do the same way what i have suggested in my reply.

The way i have configure would help u, but its imp that u have to get the excise invoice from vendor B

while capturing the excise invoice for PO against vendor A put 10% amount 700 Rs in BED and ship to party put vendor B

and at the time of LIV

put the amount (86171-700) in the line of LIV

and put 700 Dr in GL tab

so the total amount paid to vendor Awill be 86171 and 700Rs will be removed from inventory

hope that helps

as vendor is giving u invoice 86171 u have to pay him 86171

in MIro line put (86171-7001-140.02-70.01) and in Gl tab put the amount agains the Cenvat clearing account (7001140.0270.01) Dr

If u will do this the there will be no difference

hope this helps

Edited by: Umakant Bhangale on May 24, 2010 10:32 AM

[former_member187989 · Accepted solution]

the eg u have given looks u are not getting excise invoice from vendor b its just a profoma invoice 
so against profoma invoice u cant take excise credit

Orginal vendor is giving proforma invoice as Excise gate pass.

[Former Member · Accepted solution]

Proforma invoice can not be treated as Excise invoice

Ask the clients Excise expert

As per legal laws Proforma invoice can not be treated as Excise invoice

[Former Member]

Hi,

What you are asking is dealer purchase, While making GR, in the MIGO screen > Header excise inv tab > Click "more data" icon(a small icon below excise inv no) & select the MRP indicator. This will resolve your problem.

regards,

S.S.Kumar

[former_member187989]

Thanks gunal,But We will excise credit only against vendor(B),not for vendor(A) ???

Edited by: Jeyakanthan A on May 19, 2010 1:58 PM

[former_member187989]

Here scenario is E1 Purchase.

[kunal_ingale]

hi

i think the vebdor A is as good as ur FIRST stage dealer

then try the scenario of first stage dealer (as the invoice of B is just for duty breakup ref)

E.g.:

Material Price = 80/-

Excise Duty = 14/- (BEDECessSECess)

Margin = 6/-

________________________________________

Total =100/-

VAT @3% = 3/-

________________________________________

Grand Total =103/-

_____________________________________

Step 1:

Create PO with Base Price as 100/- by selecting tax code which is having VAT as 3% (Total PO value will be 103/-)

Step 2:

Post MIGO and Capture Excise Part - 1

Click on More details icon in Excise tab (header), check MRP Indicator in miscellaneous tab, Enter Assessable value as 80 in Excise tab Item level and enter the excise values BED, ECess , SECess manually, check & save the document.

Step 3;

Post Excise Part 2 in J1IEX

Step 4:

Post MIRO by checking calculate tax, edit base value as 80/- enter the amount in header as proposed by the system (103/-), simulate & post the document.

Note 1104456 - Use of MRP indicator for capturing excise duties from dealer

regards

kunal