EXCISE TAX FOR INDIA

CIN = Country India Version

Central excise Registration : 15 Digits Code

10 Digits PAN + 5 Digits excise No
Excise control code ECC
Central Excise Tariff : Chapter IDs 8 Digits code
EX 40000000
Steal 8%
Basic Excise duty (BED) Normal rate 16%
Additional Excise duty (AED) Only for Textiles Chapter Ids Starting 50 To 60
and Normal Rate in Basic amount 15 %
Special Excise duty (SED) Used for Tobacco Related Product Normal Rate in
Basic amount 8%
Education cess : 2% on BED+AED+SED Its applicable
CENVAT: Central Excise value adds tax.

Example

When we Purchase When we sales

Base Amount = 100 Base amount = 200

Excise 8% = 8 Excise 16% = 32
----- --------
Bill amount = 108 Bill amount = 232

8 Rs is CENVATABLE

For that sales Excise duty collected from customer = 32

Less Adjust Excise Cenvatable on Purchase = 8
--------

Pay to excise Department = 24

Maintain Below register base on client requirement

RG23A Part 1 Consumable purchase Quantity update

RG23A Part 2 Consumable Purchase Value up date
RG23C Part 1 Capital goods Quantity Update
RG23C part2 Capital goods Value Updation
PLA Personal ledger Account
50% CENVAT in Current Year Balance 50% Next year in First of April
Example
Purchase 8 6 2
 PLA 40 26 14

Return Registers
RG1 Finished goods
ER1 Excise returns Monthly returns before 5th next month.
( Earlier is called RT12)
RG23D Depoe Register
Excise registration plant wise

SAP Given Two tax procedures;

TAXINJ Formula Based

TAXINN Condition Based
Excise Groups allowing multiple set of Accounts / registers
Excise Service Allowing multiple excise invoices no ranges

SAP Entries purchase order Basic 100

Excise8% 8
VAT 4% 4.32
-----
Total bill amount 112.32

Up to purchase Order No accounting Entry generated

At the time of Goods Receipt MIGO

A. Inventory account Dr 100

To GRIR Clearing account Dr 100
B. RG23A Account Dr 8
To Cenvat clearing Account 8

At The time logistic invoice verification MIRO

GRIR Clearing account Dr 100

Cenvat clearing account Dr 8
VAT Receivable account DR 4.32
To Vendor Account 112.32

Incase of Capital Goods

At the time of Goods Receipt MIGO

A. Inventory account Dr 100

To GRIR Clearing account Dr 100
 B. RG23C Account Dr
CENVAT on Hold A/c
To CENVAT Clearing A/c

Next year First of April

RG23C A/C Dr 4
To CENVAT on Hold A/C 4

Sales Billing
Example Sales price 200
Excise 16% 32
Sales vat 9.28
----------
Bill amount 241.28
A. sales billing

Customer A/C Dr 241.28

To Sales 200
To Cenvat suspense A/c 32
To Vat payable A/C 9.28

B. Excise billing

Cenvat suspense A/c 32

To Cenvat payable A/c Dr 32
th
Next month 5 to make excise payment

Particular Check balance

RG23A RG23C PLA

Balance available 8 40

Payable 32Rs -6 -26

------------------------------------------------------
Balance 2 14
---------------------------------------------------------
Deposit In PLA
 PLA A/C 40
To bank 40
Cenvat payable A/C Dr 32
To RG23AA/c 6
To PLA 26

Next month 15th sales tax payment

VAT Payable ` 9.28

VAT receivable -4.32
-------
This Amount will be Sales Tax 4.96

VAT Payable A/c Dr 9.28

To VAT Receivable A/C 4.32
To BankA/c 4.96

CIN CUSTOMIZING
1. Maintain Excise Registrations
PathLogistics General Tax on Goods Movements India Basic Settings
Maintain Excise Registrations

Execute

Here go to new entry

2. Maintain Company Code Settings
PathLogistics General Tax on Goods Movements India Basic Settings
Maintain Company Code Settings

Execute

Here go to new entry

3. Maintain Plant Settings
PathLogistics General Tax on Goods Movements India Basic Settings
Maintain Plant Settings

Execute

Save
4. Maintain Excise Groups
PathLogistics General Tax on Goods Movements India Basic Settings
Maintain Excise Groups

Execute

Here go to new entry

5. Maintain Series Groups
PathLogistics General Tax on Goods Movements India Basic Settings
Maintain Series Groups

Execute
Here go to new entry

6. Maintain Excise Duty Indicators

PathLogistics General Tax on Goods Movements India Basic Settings
Maintain Excise Duty Indicators

Execute

7. Maintain Postal Addresses

PathLogistics General Tax on Goods Movements India Basic Settings
Maintain Postal Addresses

Execute
Here go to new entry
8. Maintain Sub transaction Types
PathLogistics General Tax on Goods Movements India Basic Settings
Maintain Sub transaction Types

Execute

9. Select Tax Calculation Procedure

PathLogistics General Tax on Goods Movements India Basic
Settings Determination of Excise Duty Select Tax Calculation Procedure

Execute

10. Maintain Excise Defaults

PathLogistics General Tax on Goods Movements India Basic
Settings Determination of Excise Duty Maintain Excise Defaults

Execute
 Save it and come back
Condition-Based Excise Determination TAX INJ Formal base
10. Condition-Based Excise Determination
PathLogistics General Tax on Goods Movements India Basic
Settings Determination of Excise Duty Condition-Based Excise
Determination Define Tax Code for Purchasing Documents

Execute
Give our country key Example IN
Enter
Select our tax code

11. Assign Tax Code to Company Codes

 PathLogistics General Tax on Goods Movements India Basic
Settings Determination of Excise Duty Condition-Based Excise
Determination Assign Tax Code to Company Codes

Execute
Here go to new entry

11. Classify Condition Types ITAXINN

PathLogistics General Tax on Goods Movements India Basic
Settings Determination of Excise Duty Condition-Based Excise
Determination Classify Condition Types

Execute

Save it and come back

12. T.Code J1ID( Master data for CIN) Execute

Chapter id

Here select the Chapter Id and Change icon Means Pencil icon

Here go to new entry

Save and come back

2. Material and chapter Id combination

Select Change icon or F5

 Save it and come back

Here go to new entry

this optional if want required

we give otherwise not give
Save it and come back

Here go to new entry

Save it come back

Go to change

Save and come back

change Icon
Here mention Customer and ECC NO
Save and come back
SSI Rates if want create to create ssi rates other wise not required

Go to Change icon

save and come back

Go to change icon

Go to change icon
 save it and come back

Go to change icon

Save it and come back

Go to change icon
No need to maintain Cess charges here

All the date if want to required normally no need touch here

Save it
13.Assign Users to Material Master Screen Sequence for Excise Duty
PathLogistics General Tax on Goods Movements India Master Data
Assign Users to Material Master Screen Sequence for Excise Duty

Execute

Here double click on user Screen reference.

Here go to new entry

Give our screen reference

Save it and come back

14..Create GL Account masters T.CODE FS00

Particular Current assets Current liabilities P&L A/C

RG23A BED A/C

RG23C BED A/C

CENVAT on Hold A/C

PLA A/C

VAT Receivable A/C

CENVAT Clearing A/C

CENVAT Payable A/C

CENVAT Suspenses A/C

Excise duty account

Note All Tax related account it should be open item is required
15. Check calculation Procedure
Path Spro Financial accounting Financial accounting Global setting
Tax On Sales/ purchases basic setting Check calculation Procedure

Execute
Define Procedures
Here two type of procedure are there
TAXINJ Formula Based
TAXINN Condition Based
Here select TAXINJ double click on Control data
Here in this screen Account Key JI1 , JI2, Ji3 like that
In CIN procedure assign the Gl account are Two Locations one is TCODE OB40
here assign the Gl account Another one location is give below mention path
here assign the Gl accounts.

15. Define G/L Accounts for Taxes T CODE OB40

PathLogistics General Tax on Goods Movements India Account
Determination Define G/L Accounts for Taxes

Execute
Here assign the Gl account Two requirements normal comes one is In put
second on is out put
Input tax (Purchases)
Acckey Description Gl accounts
JI1 India Basic Excise CNVAT Clearing account
ZE1 H.ECESS on BED-India CENVAT clearing Current liabil
ZEC CESS on BED-India CENVAT clearing Current liabil
ZV1 RM Vat Deduct. VAT on Purchase/Sale Current Assets
ZV2 CG Vat Deduct. VAT on Purchase/Sale Current Assets
ZV3 Service Tax Debit Service Tax Paid Others Current Assets

Output tax (Sales)

Acckey Description Gl accounts
MW2 Sales tax 2 Sales Tax Payable Current liabilities
MWS Output tax Sales Tax Payable Current liability
VS1 Sales tax 1 Excise Duty on Sales P& L statement
VS2 Sales tax 2 Excise Duty on Sales P& L statement
VS4 Sales tax 4
ZS1 HECess-BED-Sal-India EDU CESS HE ON SALES P& L stat
ZSC Cess-BED-Sal-India EDUCATION CESS ON SALE P& L stat
16. Specify Excise Accounts per Excise Transaction
PathLogistics General Tax on Goods Movements India Account
Determination Specify Excise Accounts per Excise Transaction

Execute

Save it and come back

17. Specify G/L Accounts per Excise Transaction
PathLogistics General Tax on Goods Movements India Account
Determination Specify G/L Accounts per Excise Transaction

Execute
Save it and come back
Above screen Assgin the Gl accounts

RG23BED Current Assets Excise Duty on Purchase

RG23AAED Current Assets Excise Duty on AED
RG23ASED Current Assets Excise Duty -SED
RG23CBED Current Assets Excise Duty on Purchase Of Captial goods
RG23CAED Current Assets Excise Duty on AED
RG23CSED Current Assets Excise duty on SED
Offset Current liabilities CENVAT Clearing
Mod Clearing Current CENVAT Clearing
Liabilities
GL Ac for PLA Current Assets Excise Deposit PLA A/c
BED
GL Ac for PLA Current Assets PLA-AED
AED
PLA - SED Current Assets PLA-SED
PLA for CESS Current Assets Education Cess Deposit PLA A/c
CENVAT Hold Current Assets CENVAT Hold account
CENVAT SESS P& L account Excise duty paid
CENVATSESS Current Excise Duty Payable-Fin Goods
Liabilities
PLA Hold Current Assets PLA On Hold
GLRG23AE Current Assets Education Cess on Purchase
G/l RG23CE Current Assets EDUCATION CESS ON PURCHASE OF
CAPITAL GOODS(23C)
G/L PLA ECS Current Assets Education Cess Deposit PLA A/c
RG23AAT1 Current Assets EDUCATION CESS HE ON PURCHASE
RG23CAT1 Current Assets E.CESS HE ON CG(23C)
EDUCATION CESS HEON PURCHASE OF
CAPITAL GOODS(23C)
Gl A/C for Current Assets EDUCATION CESS HE DEPOSIT PLA A/C
PLAAT1

18. Processing Modes Per Transaction

PathLogistics General Tax on Goods Movements India Business
Transactions Incoming Excise Invoices Define Processing Modes Per
Transaction

Execute
In this screen J1IEX t code active in Process mode display the below screen other wise
not display see the example below screen

19. Define Reference Documents Per Transaction

PathLogistics General Tax on Goods Movements India Business
Transactions Incoming Excise Invoices Define Define Reference Documents
Per Transaction

Execute
In this screen active the reference document active if show t code. Otherwise no show
system in the particular t code

this IMG activity, you specify for each combination of transaction and processing mode which reference
documents you want the users to be able to use.

Activities

If the standard settings meet your requirements, you do not have to do anything.

Otherwise, add the entries that you need to the table: For each transaction, make one entry per combination
of processing mode and reference document. Activate each entry for it to work.

20.Maintain Rejection Codes

PathLogistics General Tax on Goods Movements India Business
Transactions Incoming Excise Invoices Define Maintain Rejection Codes

Execute

In this screen mention Rejection codes means

Reasons
21. Specify Which Movement Types Involve Excise Invoices
PathLogistics General Tax on Goods Movements India Business
Transactions Incoming Excise Invoices Define Specify Which Movement
Types Involve Excise Invoices

Execute

In this screen sap stranded dont need touch this screen .

22.Utilization Determination
PathLogistics General Tax on Goods Movements India Business
Transactions Utilization Utilization Determination

Execute
In this screen mention utilization of Account names example utilization
Determination PLA 50% after 50% pay next year staring
23. Maintain Minimum Balances for Excise Accounts
PathLogistics General Tax on Goods Movements India Business
Transactions Utilization Maintain Minimum Balances for Excise Accounts

Execute

In this screen martin the minimum amount for Excise group for Account name
24. Specify SAPscript Forms
PathLogistics General Tax on Goods Movements India Business
Transactions Excise Registers Specify SAPscript Forms

Execute
In this screen Copy as sap stranded one company code IN 01 And change is our
company code Example Replace the IN01 To Our Company code 1000
Save it and come back
PathLogistics General Tax on Goods Movements India Tools
Number Ranges

Execute

Number Ranges
You can maintain the number ranges for all CIN Number range objects using this transaction

Activities

Please maintain the number ranges for the folllowing objects The no nr has to be '01' for all

1. j_1iintnum 9. j_1irg1_t ( material level)

At an Excise group 10. J_1iconpla ( if Consolidated PLA is used )

1. j_1irg23a1 At Series group

2. j_1irg23a2 1. J_1iexcloc

3. j_1iRG1 2. J_1iexcexp

4. j_1irg23c1 3. J_1idepinv

5. j_1irg23c2 4. J_1i57Fc ( 57F Challans )

6. j_1ipla2

7. j_1iintpr2

8. j_1irg23d
 here double click in change icon

save In this screen double click

on Number range and here maintain the number range

In same manner above mention all

objectives to maintain the number ranges and save it come back

Purchase Cycle or Procurement cycle IF we active CIN cycle are change

Purchase Requisition
Material Requisition
Enquiry RFQ
Quotation
Purchase order ME21N
Purchase Requisition
Material Requisition
Enquire RFQ
Quotation
Purchase Order ME21n
Goods receipt MIGO Goods receipt MIGO with Capture
Excise invoice only (03)
J1IEX excise invoice

Logistic invoice verification MIRO Logistic invoice Verification MIRO

Payment to vendor F-58 Payment to vendor