Query Regarding Depot Sales Process

[Former Member]

Hello Friends,

Let me first put a statement I have searched in forum a lot, I could not get a right answer.

My client has Excise Registration certificate which says it is OPERATING AS A DEALER OF EXCISABLE GOODS. When it registered as a Dealer, will all the Depot Scenarios be applicable here? Also, even when it is registered a Dealer, RG23D will be updated or not?

[Former Member]

Adding some more points here

Client has two plants

One is registered as a manufacturing plant and the other is a Dealer.

There is not stock transfer process between Plant and Dealer.

The dealer will be importing goods and also will be buying from domestic Vendors. These goods will be sold to domestic and international customers. Keeping these points in mind, please guide me on the above question

[jignesh_mehta3 · Accepted solution]

Hello,

You have mentioned, "My client has Excise Registration certificate which says it is OPERATING AS A DEALER OF EXCISABLE GOODS" and you have also mentioned "Client has two plants One is registered as a manufacturing plant and the other is a Dealer."

The above statement do not seem logical because an entity registered as Dealer cannot operate Manufacturing Plant. It requires a separate Registration for Excisable good Manufacturing activities. I would suggest to confirm this with client's legal / fiscal teams.

As far as you question regarding RG23D, Yes, all the activities of a Dealer would be recorded in RG23D Register & normal Depot scenarios would be applicable.

Thanks,

Jignesh Mehta

[Former Member · Accepted solution]

Hi Jignesh, sorry for the late reply, some how I did not get the notification in my mail.

What I meant was there are two excise registrations - One is registered as Plant and other as Dealer. Both are different entities all together. Hope this point is clear. I was looking for an answer from a legal point of view than a system point of view.

[jignesh_mehta3 · Accepted solution]

Hello Ranjit,

Obvious there would be unique Plant codes in SAP for Manufacturing and Dealing Activities.

With necessary CIN settings in SAP, all the activities (good movements) under Plant marked as Depot (Dealing activities) would be recorded in RG23D register. I believe this is also a legal requirement.

Thanks,

Jignesh Mehta

[Former Member · Accepted solution]

Ok Thanks for your kind reply!

[Lakshmipathi]

I am looking for an answer from legal point of view

Definitely you need to check this part with your client as they are the right person to confirm on this. Once they spell out the legal requirements, accordingly, you can map in SAP

[Lakshmipathi]

Adding to the suggestion already given, if you check the box for Depot in J_1IWRKCUS table, then RG23D register will get updated; else not

[Former Member]

Hello Lakshmipathi Sir, I am looking for an answer from legal point of view.

In the above comment Jignesh has said that Depot scenarios will be applicable to Dealer too.