IMG Logistics General Tax on goods movements India Basic Settings Maintain Excise Registrations Maintain Excise Registrations

ations Use In this IMG activity, you maintain the data relating to your excise registrations. Definition: excise registration An entity in India that is entitled by law to produce any goods liable to excise. Each entity is assigned its own excise registration number. Every factory that manufactures excisable goods is required to register separately, so that a business with seven factories requires seven registrations. Activities Enter each of your excise registrations, specifying a four-character code for each.

IMG Logistics General Tax on goods movements India Basic Settings Maintain Company Code Settings Maintain Company Code Settings Use In this IMG activity, you maintain the data relating to your company codes.

IMG Logistics General Tax on goods movements India Basic Settings Maintain Plant Settings Maintain Plant Settings Use In this IMG activity, you maintain excise information relating to your plants.

IMG Logistics General Tax on goods movements India Basic Settings Maintain Excise Groups Maintain Excise Groups Use In this IMG activity, you define your excise groups. For each excise group, you can also control how various excise invoice transactions will work. Definition: excise group A unit within an excise registration, in India, which keeps its own set of excise records. Whereas the excise registration reports to the excise authorities, the excise group is a purely internal organizational unit. Each excise group keeps records of all transactions that have to be reported to the excise authorities. When the time comes to present these records to the authorities, the excise registration compiles the information from all of its excise groups.

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IMG Logistics General Tax on goods movements India Basic Settings Maintain Series Groups Maintain Series Groups Use In this IMG activity, you define the different excise series groups within your company. Series groups allow you to maintain multiple number ranges for the outgoing excise documents. Based on excise regulations and exemptions from the authorities you can maintain multiple number series for outgoing documents. But each of these series has to be declared to the excise authorities. Activities Define excise series groups based on type of outgoing document Assign series group to excise registration ID If no financial postings are required for an Excise invoice in this seris group then you tick the 'No utilization' indicator. If the CENVAT has to be paid immediately and you need not wait for the Fort nightly payment then mark the 'Immediate Utilization' indicator. Example You could define two series groups, group 001 for excise invoices, and group 002 for 57 F4 documents.

Definition: excise document series group Logistics - General (LO)

A system object that excise registrations use, in India, to organize the various types of excise documents into groups. You group excise documents to reflect the way that the excise documents are organized in your excise registrations. The system numbers each group separately, using a separate number range interval for each. Example An excise registration uses various types of excise documents, including outgoing excise invoices and ARE-1s. It creates a series group for the ARE-1s, but because it has so many excise invoices, it creates two series groups for these, one for finished materials, and one for raw materials. No aacount postings for CENVAT in sales cycle No utilization Flag If you do not need any CENVAT utilization for an excise invoice but would like to just generate an excise invoice then you need to mark this indicator. IF the flag is checked then system will create an Excise invoice in the given Series group but there will not be any account postings or Part2 postings. Immediate Utilization of CENVAT Specifies that when you create an excise invoice, the system immediately pays the amount from CENVAT and creates the Part II entry. Such invoices will not be listed for fortnightly utilization. If you have both fortnightly and immediate utilization for the same excise group, the account determination within CIN IMG should point to the ED interim account. Account determination for immediate payment will be done exactly the same as being done for fortnightly utilization program. Export Period 0 Specifies the export period. Definition: export period Logistics - General (LO)

The maximum length of time that you are allowed to export goods from India after you have removed them from your premises. If you exceed the export period, you forego the exemption from basic excise duty and you must pay the excise duty to the excise authorities Use The export period applies to exports under bond and exports under claim for rebate. Dependencies If you try to change an ARE-1 after the end of the export period, the system issues a warning message. You then have two options: If you manage to obtain an extension from the excise department, you enter the extension date in the ARE-1. This effectively extends the ARE-1's export period. Otherwise, in the case of exports under bond you must pay the excise duty plus interest. In the case of exports under claim for rebate, you forego the excise duty already paid. You then close the ARE-1 as normal. Rebate Period Specifies the rebate period.

Definition: rebate period Under India's exports under rebate scheme, the maximum length of time that you are allowed to reclaim any excise duty that you have paid on exports. Use This applies to exports under claim for rebate only. Dependencies

The system does not offer any functions for controlling which ARE-1s have exceeded the rebate period. SAP recommends that you create your own programs for this purpose, if you wish.

Fast Credit Automatically credits the excise duty from ARE-1s back to the running bond account as soon as you enter the date on which you received the countersigned ARE-1 back from the customs office. Otherwise, the system does not credit the duty back until the local excise authorities confirm that the export has been completed. Use Select this indicator if you have an agreement with your local excise department to this effect. Address Specifies an organization's postal address. Use If you use the Exports Under Excise Regulations solution, enter a default customs address for this series group. Otherwise, leave the field blank. When a user creates an ARE-1 in this series group in the ARE Documents transaction, the system automatically proposes this address for the customs department. The address is shown on printouts of ARE-1s. Definition: ARE-1 document A form, in India, that companies have to fill out when they remove excisable goods from their manufacturing plants for export. The form exempts them from paying excise duty when they remove the goods from their premises. Dependencies

You define addresses in Customizing for Logistics - General, by choosing Tax on Goods Movements -> India -> Basic Settings -> Maintain Postal Addresses.

IMG Logistics General Tax on goods movements India Basic Settings Maintain Excise Duty Indicators

IMG Logistics General Tax on goods movements India Basic Settings Maintain Postal Addresses Maintain Postal Addresses Use In this IMG activity, you maintain the addresses of various customs and excise organizations that your company deals with. You use these addresses in the ARE Documents functions. When you create an ARE-1 or ARE-3, you enter the address of the excise department and the customs department involved in the export process. The system then prints their names and addresses on the AREs. Definition: ARE-1 document A form, in India, that companies have to fill out when they remove excisable goods from their manufacturing plants for export. The form exempts them from paying excise duty when they remove the goods from their premises. Definition: ARE-3 document A form, in India, that allows companies to sell otherwise excisable goods from their premises without paying basic excise duty. The buyer of the goods must be in possession of a deemed export license. The ARE-3 states what goods are being removed and which deemed excise license covers it. You can then define a default local excise department for each excise group and a default customs department for each series group.

IMG Logistics General Tax on goods movements India Basic Settings Maintain Subtransaction type with Text

IMG Logistics General Tax on goods movements India Basic Settings Determination of Excise Duty Select Tax Calculation Procedure Select Tax Calculation Procedure Use In this IMG activity, you specify which tax procedure you want to use for determining excise duties and sales taxes on input materials in India. If you use condition-based excise determination, use a copy of the tax procedure TAXINN. Definition: condition-based excise determination A method that the system uses of determining excise duty in India. This method requires you to create condition records for each combination of vendor or customer and material (and possibly other conditions). When you create a purchasing document, the system calls the tax procedure assigned to India. The tax procedure finds all of the condition records that you have created for that combination of vendor and material. When you create a sales document, the excise duties and sales taxes are determined by the pricing procedure (not the tax procedure). If you use formula-based excise determination, use a copy of the tax procedure TAXINJ. Definition: formula-based excise determination A method that the system uses of determining excise duty in India. This method was used in the Country Version India Add-On and requires you to maintain additional data in the Excise Rate Maintenance transaction, J1ID. When you create a purchasing document, the system calls the tax procedure assigned to India. Each of the excise duties in the tax procedure has its own condition types, and each condition type is assigned to a formula. This formula instructs the system to calculate the excise duty using the data that you have maintained in the Excise Rate Maintenance transaction.

When you create a sales document, the system determines the excise duties and sales taxes using the pricing procedure (not the tax procedure). This tax procedure also supports condition-based excise determination, so that you can work with both concurrently. We strongly recommend that new customers use condition-based excise determination. Note that once you have started using a tax procedure, you cannot switch to another one, otherwise you will not be able to display old documents.

IMG Logistics General Tax on goods movements India Basic Settings Determination of Excise Duty Maintain Excise Defaults Maintain Excise Defaults Use In this IMG activity, you define which tax procedure and pricing condition types are used in calculating excise taxes using formulabased excise determination. Activities If you use condition-based excise determination, fill out the CVD cond. field and leave all the others blank. If you use formula-based excise determination, fill out all of the fields as follows: Enter the tax procedure and the pricing conditions that are relevant for excise tax processing. Specify the purchasing and sales conditions types used for basic excise duty, additional excise duty, special excise duty, and cess. Definition: basic excise duty The main type of excise duty in India. It is levied on a wide range of products, for example, foodstuffs, metals, jewellery, leather goods, and machinery.

Definition: additional excise duty A form of excise duty, in India, levied on a select range of products, for the most part, textiles. Definition: special excise duty A form of excise duty in India on a limited number of goods, mostly luxury goods, including pan masala, sparkling waters, furs, and yachts. Definition: cess In India, a tax on the manufacture of certain products, mostly foodstuffs. Specify the conditions in the sales order that are used for excise rates. Specify the countervailing duty condition type used for import purchase orders. Definition: countervailing duty A form of excise duty imposed on imports that are subsidized by the country in which they were manufactured. Countervailing duty (also known as CVD) is intended to make the imports more expensive, thereby redressing any competitive advantage they might have over goods produced locally.

IMG Logistics General Tax on goods movements India Basic Settings Determination of Excise Duty Condition Based Excise Determination Define Tax Code for Purchasing Documents Define Tax Code for Purchasing Documents Use In this IMG activity, you define a tax code for the purposes of calculating excise duty when you enter purchasing documents. Only carry out this activity if you use condition-based excise determination. Activities Create a new tax code, and set the tax code type to V (input tax). Do not make any other settings for it.