
Excise credit avail for Input materials
Excise duties are duties that the state (central when it comes to country like India) imposes as taxes on the use or consumption of certain goods. The liability to pay taxes is incurred when taxable goods are moved under customs seal from a location to a taxable location.
In India Excise values are defined under Chapter ID .Chapter ID group together a class of materials which has a unique Excise values. e.g.- Chapter 30is for Pharmaceutical products (India )
There are certain pre requisites to avail excise for input materials
Re requisites
Point 1.
Excisable goods refer to those Goods which have following characteristics.
- The goods should be MOVABLE. (no duty on immovable goods).
- The goods should be MARKETABLE (capable of being bought and sold).
- The goods should arise out of MANUFACTURING process.
- The goods should be MENTIONED in the Central Excise Tariff Act (eg. chapter ID in india scenario ).
Point 2
Point 3
Plant need to have Excise Registration
Point 4
Vendor need to have Excise registration. ECC number in case of India and ECC is a legal number and under Revenue dept. of India
If any of the above are not satisfied the Plant will take the excise values are added to stock while doing the Goods receipt.
Thinking: If you closely observe you will find why a raw material, asset, etc. have excise implication and a consumables wont.
Excise related procurement processes
Excise Invoice can be captured/ posted for the following scenarios in SAP
The below scenario will explain in Sap how/ when an excise is captured and posted.
Scenario 1
Scenario 2
Scenario 3
The above are for GR and Excise capture with PO available. The Excise capture w/o PO, Inbound delivery, and sch. agreement etc. are can be done in T code J1iex.
The screen shot below will gives a heads up of all in one page for the activities listed above.
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