TAXINJ & TAXINN are Tax Procedures in India. TAXINJ is old version & TAX INN is new version.

Both has its own advantage & disadvantage.

Upto 4.6C & partially 4.7 version of SAP, TAXINJ was used. TAXINJ is formula based calculation,
in which we maintain the tax rate in Tax Code itself. The implication is that if say we are having
product range such that say Excise rate differes for separate chapter ID, VAT, CST & permutation
& combination of these, we require that many Tax Codes. For example:
Tax Code: A1
Taxes: 16% Excise Duty + 2% Education Cess + 12% VAT
Tax Code: A2
Taxes: 16% Excise Duty + 2% Education Cess + 8% VAT
Tax Code: A3
Taxes: 12% Excise Duty + 2% Education Cess + 12% VAT
Tax Code: A3
Taxes: 12% Excise Duty + 2% Education Cess + 8% VAT
From 4.7 version onwards of SAP, TAXINN is being recommended & used. TAXINN is more user
friendly & condition record based. In TAXINN, Tax Codes are statistical & of not much relevance,
but are required to be maintained in condition record for taxes condition type. This makes Tax
Codes simpler. The implication is that if say we are having product range such that say Excise
rate differes for separate chapter ID, VAT, CST, we need not have the tax codes to that
combination. For example:
Tax Code: A1
Can be used for any rate of excise duty, as tax code is only required to be maintained statistically
in condition record.
Tax Code: A2
Can be used for any rate of VAT, as tax code is only required to be maintained statistically in
condition record.
IMG > Logistics - General > Tax on Goods Movement > India > Basic Settings >
Maintain Excise Registrations
Use
In this IMG activity, you maintain the data relating to your excise registrations.
Activities
enter each of your excise registrations, specifying a four-character code for each
Excise Registration IDs

In this activity, you maintain excise registration IDs. You create one ID for each of your business's
excise registrations.
Activities
For each excise registration in your business create a registration ID, and state:
Which taxes the registration covers (additional excise duty, special excise duty, and cess)
Fields for any taxes that are not covered will be hidden in transactions involving excise duty.
The maximum number of items to be printed on each excise invoice
Whether you are allowed partial CENVAT credits
Maintain Registration ID NUMBER, Excise code number, excise registration number
Excise Registration Number
A number assigned to each premises or location that has registered as a manufacturer with the
excise authorities.
Every entity with an excise registration number is required to keep its own excise books.
ECC Number
Specifies the organization's ECC number.
Excise Registration Number
A number assigned to each premises or location that has registered as a manufacturer with the
excise authorities.
Every entity with an excise registration number is required to keep its own excise books.
Excise range: Specifies the excise range in whose area the excise registration is located.
Excise Division
Specifies the excise division in whose area the excise registration is located.
Excise Collectorate
The code of the excise collectorate in whose area the excise registration is located.
Indicator for confirming AED usage
Additional Excise duty Percentage. These are leviable under the additional duties of excise act.
These duties are in addition to basic excise duty and special excise duty.
Example
Additional Excise duty is leviable in case of textile products, tobacco and sugar.
Similarly for SED CESS
Number of Items in Excise Invoice
Shows the maximum number of line items that the authorities allow per excise invoice.

Dependencies
This information is used when you create an excise invoice in Sales and Distribution (SD) for
factory sales and for other movements.
This information is used to split the transfer postings' items into multiple subcontracting challans.
Excise register set description
Description of the excise registers set.
Partial CENVAT Credit
Indicates that the excise registration ID is allowed to credit only a portion of its input excise duty
to its CENVAT account.
Dependencies
When you post a goods receipt, the system splits the input excise duty on the material into its
deductible and nondeductible amounts. It posts the deductible duty to the appropriate CENVAT
account, and adds the nondeductible duty to the material value.
This information is also shown when you post the vendor's excise invoice.
Maintain Company Code Settings
Use
In this IMG activity, you maintain the data relating to your company codes.
Document Type for CENVAT Postings
It controls, which document type the system uses when making CENVAT postings in Financial
Accounting (FI). Here ED is document type for cenvat posting.
Indicator for providing debit account overwriting
Debit Account Overwrite Indicator. X - Indicates debit accounts can be overwritten. Use In excise
journal voucher transaction. It provides the flexibility to the user to enter the debit account of his
choice depending on the nature of transaction.
Automatic balance Indicator
Excise year start month
The calendar month marking the beginning of the excise year
Use
this start month represents the month for the start of the excise invoice number range. The month
04 is entered here indicating April of the calendar year as the start month for excise invoices. Any
change by the Excise authorities regarding start month should be taken care of by an entry in this
field and initialization.
Excise invoice selection procedure

Excise invoice selection type. To indicate the method opted by the company for selecting the
excise invoice. It can be either earliest or latest invoices that were received.
Number of excise invoices to be selected
indicates the number of excise invoices that needs to be selected in the excise invoice selection.
Days to be considered for excise invoice selection
Number of days from document date for excise invoice selection.
Example
If the value of this field is 20 and today is 28-03-97. The excise
invoice selection will show the related invoices only for the
period 08-03-97 to 28-03-97.
Document type for TDS FI posting
Financial accounting document type for TDS posting.
Document type for FI posting on Utilization
Financial accounting document type for TDS posting.
Indicator for item level excise duty round off
This indicator is to be used for deciding whether Item level excise duty amount rounding off is
required during procurement cycle. If marked 'X' then the excise duty amount will be rounded off
to the nearest rupee at the Purchase order level. This will not round off the CENVAT credit to be
taken. If the duty amount is less than one rupee then no rounding is done
Rounding off of Excise duty for outgoing excise invoice
You can round off the Excise amount to be paid during an outgoing Excise invoice by marking
this indicator as 'X'. The rounding is done at the item level for each item where the amount is
greater than 1 Rupee.
Immediate Credit on Capital Goods
Instructs the system, when you verify a goods receipt for capital goods, to immediately post half
of the input excise duty to the appropriate CENVAT accounts.
The rest is posted the CENVAT on hold account, for use in the following year.
CVD Clearing Account
Specifies which G/L account the system credits when you take a CENVAT credit on
countervailing duty in the Incoming Excise Invoices transaction.
Exchange rate type
Key representing a type of exchange rate in the system.
Use

you enter the exchange rate type to store different exchange rates.
Example
you can use the exchange rate type to define a buying rate, selling rate, or average rate for
translating foreign currency amounts. You can use the average rate for the currency translation,
and the bank buying and selling rates for valuation of foreign currency amounts.
Exchange rate type to be used for Export excise duty converts
when you are creating an Excise invoice for export sales then the exchange rate for duty
calculation will be picked up using this Exchange rate type.
Maintain Plant Settings
Use
In this IMG activity, you maintain excise information relating to your plants.
Plant Settings
In this activity, you maintain excise information relating to your plants.
Activities
For each plant:
Specify whether it is a manufacturing site or a depot.
Assign it an excise registration ID.
You can assign the same ID to more than one plant, if required.
Depot
indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for goods receipt
and invoice generation.
Number of goods receipt per excise invoice.
Multiple GR for one excise invoice, Single credit
Multiple GR for one excise invoice, multiple credits
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.
Excise Groups

In this activity, you define excise groups. An excise group allows you to maintain a separate set of
excise registers and excise accounts. The RG 23A, RG 23C and PLA serial numbers are created
for an excise group.
Recommendation
Under normal circumstances, excise authorities require every business to maintain only one set
of excise registers and one set of accounts. But through exemption from the authorities, multiple
books can be maintained.
If your company has only one set of excise registers, then you need to maintain only one excise
group.
Activities
1. Create one excise group for each set of registers that you need to keep.
1. Assign the excise groups to plants.
2. Maintain whether this Excise group is for a depot or not.
3. If you receive only one consignment for an Excise challan then you can leave GR's per EI as
blank. If you receive multiple GR's for a given Excise challan and would like to avail multiple
credit mark the GRs per EI as 'Multiple GR's for one excise invoice, multiple credit'. Alternatively
if you want to avail the credit only after all the goods receipts have been made mark it as '
Multiple GR for one excise invoice, single credit'.
4. If you want to automatically create Excise invoice during Sales cycle at the time of billing the
tick the indicator 'Create EI'
5. During depot sales if you do not want to do RG23D selection and posting separately and would
like to complete RG23D selection in one step mark the indicator 'RG23D Auto post'. This will post
the selected records into RG23D automatically. You cannot cancel the selection later.
6. If the indicator 'Default GR qty' is marked system will default the Excise challan quantity on to
the Goods receipt if the Excise invoice number is given in the pop-up.
7. If the indicator 'Folio no creates' is marked system will generate Folio numbers for RG23D
during receipt of excise invoice into depot.
8. 'Automatic posting' when ticked will post the Excise invoice other movements automatically
along with creation in single step.
9. 'Create Part1 for Block Stock' when marked will create a Part1 during the receipt of material
into Blocked stock.
10. 'Create Part1 for STO' when marked will create a Part1 during the receipt of material through
inter plant transfers.
11. 'Create Part1 for consumption stock' when marked will create a Part1 during the receipt of
material into consumption stock.
Excise Group
Governs which set of excise registers a business transaction will be included in.

Following is the relation between excise group, plant and registration.

Dependencies
In define excise groups in Customizing.
Then, in transactions involving excise duty, for example, when you post a vendor's excise invoice,
you specify which excise group you are using. This information tells the system which G/L
accounts to post the excise to.
At the end of the period, when you come to prepare your excise registers, you create different
sets for each excise group.
Indicates that the plant in question is a depot.
Dependencies
Depots are required to prepare register RG 23D, and follow different procedures for goods receipt
and invoice generation.
GR Per Excise Invoice
Multiple GR for one excise invoice , Multiple credit
Multiple GR for one excise invoice , Single Credit
Create Excise Invoice Automatically
Instructs the system to automatically create a Sales and Distribution (SD) excise invoice
immediately you create a commercial invoice or a pro forma invoice.
The excise invoice is created in the background.
Dependencies
If you want to make use of this function, you must also define the default plant, excise group, and
series groups in Customizing for Sales and Distribution (SD), by choosing Excise Group - Series
Group Determination.
RG23D Sales Creation and posting option
RG23D Automatic Option if selected will create Depot excise invoice by posting the selection of
excise invoices in single step.
If this is not selected then you need to separately do RG23D selection followed by PGI and then
RG23D verification and posting.
If you need automatic posting of RG23D selection then the Post Goods Issue should have been
completed before running RG23D selection.
Default excise qty in GR
If this indicator is ticked then while doing Goods Receipt using 'MB01' system will default the
excise invoice quantity on to the Goods receipt document.
Folio number for depo

Posting
If this indicator is marked then while creating Excise invoice for other movements system
automatically does the Verify and Post. You need not separately Post the excise invoice
Also we can set indicator for creation of part 1 for:
Blocked stock
Stock transport order
Consignment stock
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.
No account 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.
Maintain Excise Duty Indicators
Use
In this IMG activity; you maintain the excise duty indicators.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination
of Excise Duty >
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.
If you use formula-based excise determination, use a copy of the tax procedure TAXINJ.
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.
Maintain Excise Defaults
Use
In this IMG activity, you define which tax procedure and pricing condition types are used in
calculating excise taxes using formula-based 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.
Specify the conditions in the sales order that are used for excise rates.
Specify the countervailing duty condition type used for import purchase orders.
See also

SAP Library -> Logistics -> Country Versions -> Asia-Pacific -> India -> Materials Management
(MM) -> Condition-Based Excise Determination and -> Formula-Based Excise Determination.
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination
of Excise Duty >
Condition-Based Excise Determination
Use
When you enter a purchasing document, for example, a purchase order, the R/3 System
automatically calculates the applicable excise duties using the condition technique.
Features
The standard system comes with two tax calculation procedures. TAXINN is only supports
condition-based excise determination, whereas TAXINJ supports condition-based excise
determination and formula-based excise determination. Both tax procedures contain condition
types that cover all of the excise duties and sales taxes applicable.
Since the exact rates of excise duty can vary on a large number of factors, such as which vendor
you purchase a material from, or which chapter ID the vendor stocks the material under, you
create condition records for every sort of excise duty.
When you come to enter a purchasing document, the system applies the excise duty at the rates
you have entered in the condition records.
Activities
Customizing
Make for Logistics General, by India the settings in Customizing Basic
Excise Duties Usingchoosing Taxes on Goods Movements Account Settings
Determination.Condition Technique and
These activities include one activity where you define a tax code for condition-based excise
determination.
Master Data
Create condition records for all excise duties that apply, and enter the tax code for conditionbased excise determination in each.
Day-to-Day Activities
When you enter a purchase order or other purchasing document, enter the tax code for
condition-based excise determination in each line item. The system then calculates the excise
duties using the condition records you have created.
When the ordered materials arrive, you post the goods receipt and the excise invoice. The
system posts the excise duty to the appropriate accounts for deductible input taxes when you
enter the excise invoice.
Creating Condition Records for Excise Duty

1. In the command field, enter FV11 and choose .

2. Enter the condition type that you want to create a condition record for and choose .
The Key Combination dialog box appears.
3. Select the combination of objects that you want to create the condition record for.
On the dialog box, Control Code means "chapter ID."
So, for example, to create a condition record for a tax that applies to a combination of country,
plant, and chapter ID, select Country/Plant/Control Code.
4. Choose.
5. Enter data as required.
In the Tax Code field, enter the dummy tax code that you have defined.
6. Save the condition record.
Formula-Based Excise Determination
Use
When you execute a business transaction involving materials that are subject to excise duty, the
system automatically calculates the duty for you.
Prerequisites
In order for the system to be able to determine which rate of excise duty to apply, you must have
maintained all the data on the Excise Rate access from the SAP EasyMaintenance
screen, which you can Master Data Access screen by choosing Indirect Taxes Excise
Rate Maintenance.
You maintain the following types of data:
Plant master data
You assign each of your plants an excise duty indicator. You can use the same indicator for all
the plants with the same excise status from a legal point of view, such as all those that are in an
exempt zone.
See also the information about manufacturers that are only entitled to deduct a certain portion of
the duty (see Partial CENVAT Credit).
Vendor master data
For each of your vendors with the same excise status from a legal perspective, you define an
excise duty indicator. You must also specify the vendor type for example, whether the vendor is
a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as
a small-scale industry.
For each permutation of plant indicator and vendor indicator, you then create a final excise duty
indicator.
Customer master data

similarly, you assign the same excise duty indicator to each of your customers that share the
same legal excise status.
Again, for each permutation of plant indicator and customer indicator, you then create a final
excise duty indicator.
Material master data
each material is assigned a chapter ID.
Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.
If your business only qualifies for partial CENVAT credit, you must customize your system
accordingly.
Activities
Let us consider an example to illustrate how the system determines which rate of excise duty to
apply to a material. Assume you are posting a sale of ball bearings to a customer. The system
automatically determines the rate of excise duty as follows:
1. Looks up the customer master data to see what status you have assigned the customer.
Let's assume you've assigned the customer status 3.
2. Looks up the plant master data to see what status you have assigned the plant.
Similarly, your plant has status 2.
3. The system looks up the table under Excise Indicator for Plant and Customer to see what the
final excise duty indictor is for customer status 3 and plant status 2: It is 7.
4. The system determines the chapter ID of the ball bearing for the plant.
Lets assume the chapter ID at plant for the ball bearings is 1000.01.
5. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to
chapter ID 1000.01 under status 7.
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.
Assign Tax Code to Company Codes
Use
In this IMG activity, assign the tax code for purchasing documents to the company codes where it
will be used.

Only carry out this activity if you use condition-based excise determination.
Classify Condition Types
Use
In this IMG activity, you specify which condition types you use for which sort of tax. Note that this
only applies to condition types that you use with the new excise determination method.
The system uses this information when you create a document from another one. For example,
when you enter an incoming excise invoice from a purchase order, or when you create an
outgoing excise invoice from a sales order, the system determines the various excise duties in the
excise invoice using the information that you have entered here.
In addition, when you create a purchasing document, the system only uses the condition types
that you enter here.
For taxes on purchases, use the condition types contained in the tax procedure.
For taxes on sales, use the condition types contained in the pricing procedures.
Standard settings
The standard system comes with sample settings for the tax calculation procedures and pricing
procedures.
Use these settings as a basis for your own.
IMG > Logistics - General > Tax on Goods Movement > India > Account Determination
Define G/L Accounts for Taxes
Use
In this IMG activity, you specify which G/L accounts you will use to record which taxes.
Requirements
you have set up G/L accounts for each of the processing keys listed below.
Activities
Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3
are used as clearing accounts during excise invoice verification.
VS1 (basic excise duty)
VS2 (additional excise duty)
VS3 (special excise duty)
VS5 (sales tax setoff)
MWS (central sales tax)
MW3 (local sales tax)
ESA (service tax)

 ESE (service tax expense)

Specify Excise Accounts per Excise Transaction
Use
In this IMG activity, you specify which excise accounts (for excise duty and CENVAT) are to be
posted to for the various transaction types. Enter all the accounts that are affected by each
transaction type.
If you use sub transaction types, enter the accounts for each sub transaction type as well.
Activities
Transaction type UTLZ is used for determining accounts only while posting excise JVs and also if
the payment of excise duty has to be done fortnightly.
The fortnightly CENVAT payment utility picks up the credit side accounts from the transaction
types of GRPO, EWPO, and TR6C for determining the CENVAT and PLA accounts. There is no
separate transaction type for fortnightly payment.
Example
Excise TT DC ind Account name
GRPO CR CENVAT clearing account
GRPO CR RG 23 BED account
GRPO DR CENVAT on hld account
Specify G/L Accounts per Excise Transaction
Use
In this IMG activity, you assign the excise and CENVAT accounts to G/L accounts.
When you come to execute the various transactions, the system determines which G/L accounts
to post to by looking at the:
Excise group
Company code
Chart of accounts
Furthermore, if you want separate account determination settings within an excise group, you can
also use sub transaction types.
Requirements
You have already:
Defined the G/L accounts
Defined the excise groups
Maintained the transaction accounts

Activities
For each excise group, assign the excise and CENVAT accounts to G/L accounts. For most
businesses, one set of accounts will suffice for all transactions.
Note
You need not remit the CENVAT to the excise department immediately, so maintain the credit
account for transaction type DLFC as an excise duty interim account. This will be set off when
you remit the duty.
Config setting needed to be done in order to get the Excise Details Screen in Material Master.
Even though this functionality is available in enterprise version, a small config step has to be
made in Screen Sequences for Material Master.
Following document helps you to do this configuration.
 1. Go to IMG Define Structure of Logistics General Material Master
Configuring the Material master Screen Sequence.Data Screen for each
2. Select your screen sequence. Usually it would be 21. Select the same and click on Data
Screen in the left frame.
3. Once the data screens are exhibited, select data screen no. 15, ie. SSq. 21and Scrn 15, which
is Foreign Trade: Import Data. Select the same and click on Subscreens in the left frame.
4. Go to the last sub screen i.e. 21-15-6 - SAPLMGD1- 0001 and select the same. Click on tab
view subscreen and ensure that the subscreen is blank.
5. Now in the last sub screen i.e. no.6 you delete SAPLMGD1 0001 and instead add
SAPLJ1I_MATERIAL_MASTER and in the screen no. 2205.
6. Save the setting.
7. Create a Material Master and check whether in Screen Foreign Trade Import, Excise related
subscreen appears.
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prashanth gaddam replied

February 29, 2012 at 11:18 AM

hi

Condition-Based Excise Determination

Use
When you enter a purchasing document, for example, a purchase order, the system automatically
calculates the applicable excise duties using the condition technique.
Features

The standard system comes with two tax calculation procedures. TAXINN is only supports
condition-based excise determination, whereas TAXINJ supports condition-based excise
determination and formula-based excise determination.
Both tax procedures contain condition types that cover all of the excise duties and sales taxes
applicable.
Since the exact rates of excise duty can vary on a large number of factors, such as which vendor
you purchase a material from, or which chapter ID the vendor stocks the material under, you
create condition records for every sort of excise duty.
When you come to enter a purchasing document, the system applies the excise duty at the rates
you have entered in the condition records.
Activities
Customizing
Make the settings in Customizing for Logistics General, by choosing Taxes on Goods
Movements India Basic Settings Excise Duties Using Condition Technique and
Account Determination.
These activities include one activity where you define a tax code for condition-based excise
determination.
Master Data
Create condition records for all excise duties that apply, and enter the tax code for conditionbased excise determination in each.
Day-to-Day Activities
When you enter a purchase order or other purchasing document, enter the tax code for
condition-based excise determination in each line item. The system then calculates the excise
duties using the condition records you have created.
When the ordered materials arrive, you post the goods receipt and the excise invoice. The
system posts the excise duty to the appropriate accounts for deductible input taxes when you
enter the excise invoice.
Configuration of Tax Calculation Procedure TAXINN
Purpose
TAXINN is a tax calculation procedure for country version India and it supports condition-based
excise determination. You need to configure this tax calculation procedure.
Process Flow
Execute the following steps in the Implementation Guide to configure the tax calculation
procedure TAXINN:
Procurement
...

Set up the following Access Sequences in the the IMG under Financial Accounting Financial
Accounting Global Settings Tax on Sales/Purchases Basic Settings Check Calculation
Procedure Access Sequences:
JTAX
JST1
Set up the Condition Types for the following conditions in the IMG under Financial Accounting
Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Check
Calculation Procedure Define Condition Types:
1. MM Excise Conditions
JMOP IN: BED setoff %
JMOQ IN: BED setoff Qty
JAOP IN: AED setoff %
JAOQ IN: AED setoff Qty
JSOP IN: SED setoff %
JSOQ IN: SED setoff Qty
JMIP IN: BED inventory %
JMIQ IN: BED inventory Qt
JAIP IN AED inventory %
JAIQ IN AED inventory Qty
JSIP IN SED inventory %
JSIQ IN SED inventory Qty
JMX1 IN: A/P BED setoff
JAX1 IN: A/P AED setoff
JSX1 IN: A/P SED setoff
JMX2 IN: A/P BED inventor
JAX2 IN: A/P AED inventor
JSX2 IN: A/P SED inventor
JECP IN:A/P e-cess setoff
JECI IN: Eces inventory
JEX1 IN: A/P ecs setoffT
JEX3 IN: A/P ecs invT
1. LST/CST/VAT Conditions

JIPS IN Sales tax setoff

JIPC IN Central sales tax invoice
JIPL IN Local sales tax invoice
JIP5 A/P RM Deductible
1. Service Tax Conditions
JSRT A/P Service Tax
JEC3 A/P ECS for ST
Define the Tax Procedure according to the settings in the figures below.
You can do this in the IMG under Financial Accounting Financial Accounting Global Settings
Tax on Sales/Purchases Basic Settings Check Calculation Procedure Define Procedures.
Set up the following Account Key in the IMG under Financial Accounting Financial Accounting
Global Settings Tax on Sales/Purchases Basic Settings Check and Change Settings for
Tax Processing.
1. VS6 Input Tax
Assign Tax Procedure to the country.
You can do this in the IMG under Financial Accounting Financial Accounting Global Settings
Tax on Sales/Purchases Basic Settings Assign Country to Calculation Procedure.
Sales
...
Set up the Condition Types for the following conditions in the IMG under Financial Accounting
Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Check
Calculation Procedure Define Condition Types:
1. Excise Conditions
JASS IN A/R BED
JEXP IN A/R BED
JEXQ IN A/R BED
JEAP IN A/R AED %
JEAQ IN A/R AED Qty
JESP IN A/R SED %
JESQ IN A/R SED Qty
JCEP IN A/R CESS %
JCEQ IN A/R CESS Qty
JEXT IN A/R BED total

JEAT IN A/R AED total

JEST IN A/R SED total
JCET IN A/R CESS total
JECT IN A/R ECS total
1. LST/CST/VAT Conditions
JCST IN A/R CST
JCSR IN A/R CST Surcharge
JLST IN A/R LST
JLSR IN A/R LST Surcharge
1. Export Conditions
JFRE IN Frieght
JINS IN Insurance
Set up the Access Sequence in the the IMG under Financial Accounting Financial Accounting
Global Settings Tax on Sales/Purchases Basic Settings Check Calculation Procedure
Access Sequences:
Set up the following Pricing Procedures according to the settings in the figures below.
You can do this in the IMG under Sales and Distribution Basic Functions Pricing Pricing
Control Define And Assign Pricing Procedures.
1. JDEPOT (IN:Depot sale with formula)
1. JEXPOR (IN:Export sales with formula)
1. JFACT (IN:Factory sale with formula)
1. JSTKTR (IN:Stock transfer with formula)
Formula-Based Excise Determination
Use
When you execute a business transaction involving materials that are subject to excise duty, the
system automatically calculates the duty for you.
Prerequisites
In order for the system to be able to determine which rate of excise duty to apply, you must have
maintained all the data on the Excise Rate Maintenance screen, which you can access from the
SAP Easy Access screen by choosing Indirect Taxes  Master Data  Excise
Rate Maintenance.
You maintain the following types of data:
Plant master data

You assign each of your plants an excise duty indicator. You can use the same indicator for all
the plants with the same excise status from a legal point of view, such as all those that are in an
exempt zone.
Vendor master data
For each of your vendors with the same excise status from a legal perspective, you define an
excise duty indicator. You must also specify the vendor type for example, whether the vendor is
a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as
a small-scale industry.
For each permutation of plant indicator and vendor indicator, you then create a final excise duty
indicator.
Customer master data
Similarly, you assign the same excise duty indicator to each of your customers that share the
same legal excise status.
Again, for each permutation of plant indicator and customer indicator, you then create a final
excise duty indicator.
Material master data
Each material is assigned a chapter ID.
Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.
If your business only qualifies for partial CENVAT credit, you must customize your system
accordingly.
Activities
Let us consider an example to illustrate how the system determines which rate of excise duty to
apply to a material. Assume you are posting a sale of ball bearings to a customer. The system
automatically determines the rate of excise duty as follows:
1. Looks up the customer master data to see what status you have assigned the customer.
Let's assume you've assigned the customer status 3.
2. Looks up the plant master data to see what status you have assigned the plant.
Similarly, your plant has status 2.
3. The system looks up the table under Excise Indicator for Plant and Customer to see what the
final excise duty indictor is for customer status 3 and plant status 2: It is 7.
4. The system determines the chapter ID of the ball bearing for the plant.
Lets assume the chapter ID at plant for the ball bearings is 1000.01.
5. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to
chapter ID 1000.01 under status 7.

Material Master (Excise Data)

Definition
The part of the material master record that contains information relating to Indian excise duty.
Use
In conjunction with other data, this data is used to calculate excise duty on various transactions.
To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes  Master
Data  Excise Rate Maintenance, and then select the following options described below.
Structure
The excise part of the material master is divided into the following screens:
Chapter IDs
On this screen, you define the chapter IDs and corresponding descriptions as described in the
excise tariff structure. This information is used when you create excise invoices and is also shown
in the various excise registers.
Material and Chapter ID Combination
On this screen, you maintain the excise data relating to your materials. For each material,
specify:
Chapter ID
Whether the material can be sent to subcontractors (see Subcontracting)
The material type
This denotes, for example, whether the material is a raw material, a capital good this affects the
CENVAT process or if it is a finished good on which excise has been paid, to be covered by the
Update of RG 1 and Part I Registers.
Whether you accept more than one goods receipt per excise invoice, and if so, whether the
excise duty should be credited to the CENVAT account immediately a goods receipt is posted
(multiple credit) or not until all the goods receipts have arrived (single credit) (see Multiple Goods
Receipts for a Single Excise Invoice)
This information is valid for a given plant. If the information is valid for all of your plants, however,
leave the Plant field blank.
Material Assessable Value
On this screen, you maintain the net dealer price and the assessable value of all materials that
you send to subcontractors or for any other issue. These values serve as the excise base value
when the materials are issued, and tell the system how much excise duty to reverse from your
CENVAT account.
CENVAT Determination

On this screen, you specify which raw materials are used to produce which finished (or
semifinished) goods. The system uses this information to determine whether it you can claim a
CENVAT credit for a material.
Excise Tax Rate
On this screen, you specify for each chapter ID every possible rate of excise duty that might
apply, so you must take into consideration each permutation of plant and customer; and each
combination of plant and vendor.
You can maintain the basic excise rates in the following forms:
Ad valorem
Specific
As a combination of both
For each rate, specify until which date it applies.
You can also maintain the additional excise duty and special excise duty in ad valorem form,
should any apply. If you need to give these rates as a fixed sum, use the Quantity Based AED
and SED screen.
Additional Excise Rate
On this screen, maintain any cess applicable.
Exceptional Material Excise Rate
On this screen, maintain any exceptions that apply to the excise rates that you have defined.
Exceptions can apply to a single material from all vendors, of to a single material from one
vendor only. If you have an exceptional rate for a customermaterial combination, you can
maintain it here as well.
Sales Tax Setoff Percentages
On this screen, maintain the percentage of local sales tax on inputs that you can deduct against
LST on outputs. The setoff amount is deducted from the inventory valuation of the material.
Currently very few states, for example, Maharashtra and Gujarat, participate in this scheme.
Vendor Master (Excise Data)
Definition
The part of the vendor master record that contains information relating to excise duty.
Use
In conjunction with other data, this data is used to calculate excise duty on various transactions.
To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes  Master
Data  Excise Rate Maintenance, and then select the following options described below.
Structure
The excise part of the vendor master is divided into the following screens:

Vendor Excise Details

On this screen, you enter your vendors' tax numbers, which are used for various forms of
correspondence and reports:
Excise registration number (and the range, division, and collectorate in which this is located)
Central sales tax (CST) number
Local sales tax (LST) registration number
Permanent account number (PAN)
In order for the system to be able to calculate which rate of excise duty to apply on purchases
from the vendor, you must also:
Assign it a vendor excise duty status (for more information about how this works, see
Determination of Excise Duty Rates)
Specify what type the vendor is, for example, a manufacturer, first-stage dealer, or importer for
57AE returns
If the vendor qualifies as a small-scale industry (SSI), you must also specify:
o What its SSI status is (which you must first have defined under SSI rates, see below)
o Whether or not it is participating in the CENVAT scheme
SSI Rates
On this screen, you define the excise rates that apply to purchases from vendors that qualify as
SSIs. You define one status for each band (or "slab") of sales volume provided for by the law, and
for each SSI status, the rates of excise duty that applies to that slab under the two schemes (see
Excise Duty for Small-Scale Industries).
Excise Indicator for Plant and Vendor
On this screen, you define the final excise duty indicator (for more information about how this
works, see Determination of Excise Duty Rates).
Customer Master (Excise Data)
Definition
The part of the customer master record that contains information relating to Indian excise duty.
Use
In conjunction with other data, this data is used to calculate excise duty on various transactions.
To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes  Master
Data  Excise Rate Maintenance, and then select the following options described below.
Structure
The excise part of the customer master contains the following information:
Customer Excise Details

On this screen, you enter your customers' tax registration numbers, which are used for various
forms of correspondence and reports:
Excise registration number (and the range, division, and collectorate in which this is located)
Central sales tax (CST) number
Local sales tax (LST) registration number
Permanent account number (PAN)
In order for the system to be able to calculate which rate of excise duty to apply on sales to the
customer, you must also assign it a customer excise duty status (for more information about how
this works, see Determination of Excise Duty Rates).
Excise Indicator for Plant and Customer
On this screen, you define the final excise duty indicator (for more information about how this
works, see Determination of Excise Duty Rates).
Plant Master (Excise Data)
Definition
The part of the plant master record that contains information relating to Indian excise duty.
Use
In conjunction with other data, this data is used to calculate excise duty on various transactions.
To maintain the data, from the SAP Easy Access screen, choose Indirect Taxes  Master
Data  Excise Rate Maintenance, and then select the following options described below.
Structure
The excise part of the plant master is divided into the following screens:
Excise Indicator for Plant
On this screen, you enter your plants' tax registration numbers, which are used for various forms
of correspondence and reports:
Central sales tax (CST) number
Local sales tax (LST) registration number
Permanent account number (PAN)
In order for the system to be able to calculate which rate of excise duty to apply on purchases for
this plant, you must also assign it a plant excise duty status (for more information about how this
works, see Determination of Excise Duty Rates).
Excise Indicator for Plant and Vendor
On this screen, you define the final excise duty indicator (for more information about how this
works, see Determination of Excise Duty Rates).
Excise Indicator for Plant and Customer

On this screen, you define the final excise duty indicator (for more information about how this
works, see Determination of Excise Duty Rates).
Excise Duty for Small-Scale Industries
Use
Businesses that qualify as small-scale industries (SSIs those with, for example, no more than
two premises and with a sales volume not exceeding an amount specified by the government)
need to pay only reduced rates of excise duty on their goods movements. The exact rate
depends on the business's annual sales volume (see below).
That means that when you make a purchase from an SSI, the system calculates a different rate
of excise duty. Note that SSIs are not required to pay additional excise duty or special excise
duty.
Prerequisites
In order for the system to be able to calculate the correct rate of excise duty, you must have:
1. Defined the SSI statuses.
You define a separate SSI status for each of the various "slabs" (sales volume) (see Vendor
Master (Excise Data).
2. In the vendor master:
o Assigned the vendor the SSI status that you have just defined.
o If the vendor participates in the CENVAT scheme (see below), entered X (Vendor participating
in CENVAT scheme).
Features
As far as SSIs are concerned, there are two schemes. Under the first, an SSI can opt out of the
CENVAT scheme. In this case, they apply basic excise duty at certain flat rates on all
transactions. These rates vary according to their total annual sales.
An SSI with sales of less than INR 100,000 would not apply any excise duty; those earning up to
INR 400,000 would levy basic excise duty on all materials at 2%, and so on.
Under the second scheme, whereby an SSI participates in the CENVAT scheme, the SSI pays
excise duty at a percentage of the normal basic excise duty for the material in question. Again,
this percentage depends on the SSI's total annual sales.
Turnover (INR) Excise (%) SSI rate (% of excise) Effective SSI excise (%)
0100,000 15 60 9
100,000400,000 15 80 12
Configuration of Tax Calculation Procedure TAXINJ
Purpose

TAXINJ is a tax calculation procedure for country version India and it supports formula-based
excise determination. You need to configure this tax calculation procedure.
Process Flow
Execute the following steps in the Implementation Guide to configure the tax calculation
procedure TAXINJ:
Procurement
...
..
Set up the Condition Types for the following conditions in the IMG under Financial Accounting
Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Check
Calculation Procedure Define Condition Types:
Excise Conditions
JMOD IN: A/R BED
JNED IN: A/R NCCD
JAED IN: A/R AED
JSED IN: A/R SED
JCES IN: A/R Cess
JECS A/R Educational CESS
1. LST/CST/VAT Conditions
JIN1 IN: A/R CST
JIN2 IN: AR LST
JIN4 IN: A/R CST Surcharge
JIN5 IN: AR LST Surcharge
JIN6 A/R VAT Payable
JIN7 A/R CST Payable VAT
1. Service Tax Conditions
JSE4 Service Tax
JES4 ECS on Service Tax
Set up the following Account Key in the IMG under Financial Accounting Financial Accounting
Global Settings Tax on Sales/Purchases Basic Settings Check and Change Settings for
Tax Processing.
1. VS6 Input Tax
Define the Tax Procedure according to the settings in the figures below.

You can do this in the IMG under Financial Accounting Financial Accounting Global Settings
Tax on Sales/Purchases Basic Settings Check Calculation Procedure Define Procedures.
Assign Tax Procedure to the country.
You can do this in the IMG under Financial Accounting Financial Accounting Global Settings
Tax on Sales/Purchases Basic Settings Assign Country to Calculation Procedure.
Sales
...
Set up the Condition Types for the following conditions in the IMG under Financial Accounting
Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Check
Calculation Procedure:
1. Excise Conditions
JMOD IN A/R BED
JEX2 IN A/R BED
JAED IN A/R AED
JEXA IN A/R AED
JNED A/R NCC duty
JEXN A/R NCCD
JSED IN A/R SED
JEXS IN A/R SED
JCES IN A/R CESS
JCED IN A/R CESS
JECS IN A/R EDU-CESS
JECX IN A/R EDU-CESS
LST/CST/VAT Conditions
1. JIN1 IN A/R CST
2. JIN2 IN A/R LST
3. JIN4 IN A/R Surcharge
4. JIN5 IN A/R LST Surcharge
5. JIN7 IN A/R CST in VAT
6. JIN8 IN A/R LST Value
Service Tax Conditions
1. JSE4 IN Service Tax

2. JES4 ECS on Service Tax

Set up the Condition Type UTXJ and assign the Access Sequence as JIND.
You can do this in the IMG under Financial Accounting Financial Accounting Global Settings
Tax on Sales/Purchases Basic Settings Check Calculation Procedure Define Condition
Types.
Set up the following Account Key in the IMG under Financial Accounting Financial Accounting
Global Settings Tax on Sales/Purchases Basic Settings Check and Change Settings for
Tax Processing.
1. MW3 Sales tax 3
2. MWS Output tax
3. JN6 A/R VAT Payable
4. JN7 A/R CST Payable VAT
5. JN9 LST Value
6. JS6 A/R Service tax
7. JS7 A/R ECS on Service
Set up the following Pricing Procedures according to the settings in the figures below.
You can do this in the IMG under Sales and Distribution Basic Functions Pricing Pricing
Control Define And Assign Pricing Procedures.
1. JDEPOT (IN:Depot sale with formula)
1. JEXPOR (IN:Export sales with formula)
1. JFACT (IN:Factory sale with formula)
1. JSTKTR (IN:Stock transfer with formula)
Set up the Condition Types for the following conditions in the IMG under Financial Accounting
Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Check
Calculation Procedure Define Condition Types:
Excise Conditions
JMOD IN: A/R BED
JNED IN: A/R NCCD
JAED IN: A/R AED
JSED IN: A/R SED
JCES IN: A/R Cess
JECS A/R Educational CESS
1. LST/CST/VAT Conditions

JIN1 IN: A/R CST

JIN2 IN: AR LST
JIN4 IN: A/R CST Surcharge
JIN5 IN: AR LST Surcharge
JIN6 A/R VAT Payable
JIN7 A/R CST Payable VAT
1. Service Tax Conditions
JSE4 Service Tax
JES4 ECS on Service Tax
Set up the following Account Key in the IMG under Financial Accounting Financial Accounting
Global Settings Tax on Sales/Purchases Basic Settings Check and Change Settings for
Tax Processing.
1. VS6 Input Tax
Define the Tax Procedure according to the settings in the figures below.
You can do this in the IMG under Financial Accounting Financial Accounting Global Settings
Tax on Sales/Purchases Basic Settings Check Calculation Procedure Define Procedures.
Assign Tax Procedure to the country.
You can do this in the IMG under Financial Accounting Financial Accounting Global Settings
Tax on Sales/Purchases Basic Settings Assign Country to Calculation Procedure.
Sales
...
Set up the Condition Types for the following conditions in the IMG under Financial Accounting
Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Check
Calculation Procedure:
1. Excise Conditions
JMOD IN A/R BED
JEX2 IN A/R BED
JAED IN A/R AED
JEXA IN A/R AED
JNED A/R NCC duty
JEXN A/R NCCD
JSED IN A/R SED
JEXS IN A/R SED

JCES IN A/R CESS

JCED IN A/R CESS
JECS IN A/R EDU-CESS
JECX IN A/R EDU-CESS
LST/CST/VAT Conditions
1. JIN1 IN A/R CST
2. JIN2 IN A/R LST
3. JIN4 IN A/R Surcharge
4. JIN5 IN A/R LST Surcharge
5. JIN7 IN A/R CST in VAT
6. JIN8 IN A/R LST Value
Service Tax Conditions
1. JSE4 IN Service Tax
2. JES4 ECS on Service Tax
Set up the Condition Type UTXJ and assign the Access Sequence as JIND.
You can do this in the IMG under Financial Accounting Financial Accounting Global Settings
Tax on Sales/Purchases Basic Settings Check Calculation Procedure Define Condition
Types.
Set up the following Account Key in the IMG under Financial Accounting Financial Accounting
Global Settings Tax on Sales/Purchases Basic Settings Check and Change Settings for
Tax Processing.
1. MW3 Sales tax 3
2. MWS Output tax
3. JN6 A/R VAT Payable
4. JN7 A/R CST Payable VAT
5. JN9 LST Value
6. JS6 A/R Service tax
7. JS7 A/R ECS on Service
Set up the following Pricing Procedures according to the settings in the figures below.
You can do this in the IMG under Sales and Distribution Basic Functions Pricing Pricing
Control Define And Assign Pricing Procedures.
1. JDEPOT (IN:Depot sale with formula)

1. JEXPOR (IN:Export sales with formula)

1. JFACT (IN:Factory sale with formula)
1. JSTKTR (IN:Stock transfer with formula)