6 Replies Latest reply: Jul 28, 2010 2:08 PM by Siddhant Hant RSS

Excise Duty on Assessable Value in PO

Siddhant Hant
Currently Being Moderated

Dear Friends,

The scenario is that weu2019re purchasing material from an outside vendor & therefore creating a PO for that. Now in this scenario the Purchasing Value is different (say e.g Rs 10,000), but excise duties have to be calculated on the Assessable Value (say e.g Rs 8,000). In the std. process, to calculate excise duty we create Tax Code & enter that Tax Code in PO-> Invoice tab in the line item. The system then calculates the Excise duty on the basis of Net Price (field: NETPR) mentioned in the header i.e. the Purchasing Value (Rs. 10,000). While capturing in J1IEX, we mention the assessable value & there the system calculates the excise duty on assessable Value. But our issue is that we want that in PO itself Excise duty shd be calculated on the Assessable Value (i.e. Rs. 8,000) & not on Purchasing Value, so that we can give correct PO to the vendor. At the same time the Purchasing Value (Rs. 10,000) shd also remain in the PO, becoz GR/IR needs to be valued on Purchasing Value ONLY. Weu2019re using CIN. Pls advice.

Thanks

 

Edited by: Siddhant Hant on Jun 17, 2010 9:53 AM

  • Re: Excise Duty on Assessable Value in PO
    Nagaraju Chagonda
    Currently Being Moderated

    Hi,

     

    For this case you need to maitain another manual condition and for this condition we need to maintain seperate routine. And if you want to chage the assessable value in po then enter manual conditon in change mode then system will take this new value for calculating excise values.. we are using this functionality.. I hope this will be useful.

     

     

    Regards,

     

    Nauma.

    • Re: Excise Duty on Assessable Value in PO
      Siddhant Hant
      Currently Being Moderated

      Dear Nauma,

      Thanks a lot for your reply. But pls advice on one more scenario. It is just opposite to the first one. The scenario is: We purchased a material from a dealer for Rs. 2,00,000. But the dealer had in turn purchased that material for Rs. 3,00,000 from the manufacturer & therefore passed on the Excise duty levied on Rs.3,00,000. However, the dealer charged the VAT on Rs.2,00,000+ Excise on Rs.3,00,000. So how to do this customization in PO? Weu2019re using TAXINJ. Pls note that in PO 2 procedures are used: one the MM Calculation Schema & the other is TAXINJ. Pls elaborate how to do above setting?

      Again lot of thanks.

      • Re: Excise Duty on Assessable Value in PO
        ansari mubbashir
        Currently Being Moderated

        As Nauna told that te excise duty should be captured manually , same for the second case is that u have to follow dealer excise /third party excise invoice . Generally third party excise invoice is that Dealer purchase material from manufacture & bill us including comission of itself but excise invoice is provided of manufacturer.

         

        So in PO U have to maintain excise duty BED 0(zero) , in Migo u have to capture the duty manually & in excise tab in miscellaneous tick the MRP indicator for the duty not to get inventorized & in miro u have to change the price i.e of material & vat /CSt only & manually add the excise duty to clearing account in the GL tab in MIRO

         

        Regards

         

        Iqbal

  • Re: Excise Duty on Assessable Value in PO
    Currently Being Moderated

    Hi,

     

    Which pricing procedure you are using ?

     

    If you are using TAXINN then you can adjust in FV11 say in your case calculation as under.

     

    Assessable      10     2     1

    10000      1000     20     10

          12.5     2     1

    8000      1000     20     10

     

    Here to arrive the exact value of excise cahne the excise duties as showun like total value of excise is 1000 in order to arrive that 10000 on 8000 change excise duties to 12.5% then it will be equal to 1000. Hope this clears you.

     

    Regards

  • Re: Excise Duty on Assessable Value in PO
    Currently Being Moderated

    Hi,

     

    Maintain manual condition in M/06 & in M/08 Pricing procedure include that. Now based on the Condition type the Excise duty will flow.

     

    pherasath

  • Re: Excise Duty on Assessable Value in PO
    Siddhant Hant
    Currently Being Moderated

    Thanks to all.

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