Country Vers. India Settings

GROWEL SOFTECH PVT LTD
PROJECT:SAP R/3 IMPLEMENTATION.

CLIENT:GRAUER & WEIL INDIA LTD.
CIN – INDIA TAXES VERSION 3.0A
CONFIGURATION MANUAL
COUNTRY INDIA (CIN)TAXES VERSION 3.0A
From SAP for going to CIN type Transaction Code – J1IT
I. GLOBAL SETTINGS
CIN India Localization Menu  Global Settings
In the following activities, you make the global settings for working with Country
Version India.
1. Company Settings
CIN India Localization Menu  Global Settings  Company Settings.
Transaction Code J1IT
Maintain company-specific default values for processing excise documents. Default

excise invoice selection parameters, excise duty percentage for subcontract
operations can be maintained here.
Maintain the values here and avoid filling the selection parameters repeatedly during
document creation.
Following are the settings made:
1.Modvat document type
MP (Indicates the Doc Type of FI document posted ).
2.Debit Account Overwrite Indicator
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.
3. Automatic Balances Adjustment Indicator
4. Excise Year Start Month
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 initialisation.
5. Excise Invoice selection Procedure
CONFIGURATION MANUAL CIN MODULE Page 1 of 41

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.
6. Number of Excise Invoices to be selected in the excise invoice selection.
7. 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 30 and today is 31-03-2001. The excise invoice selection will
show the related invoices only for the period 01-03-2001to 31-03-2001.
8. Document Type for Posting TDS (For Financial Documents)
9. Document Type for Posting TDS (For Financial Documents) on Utilisation
10. 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. If marked 'X' then the excise duty
amount will be rounded off to the nearest rupee.
CAUTION: The above two indicators should not be selected as these indicators only
round the ED amounts to the nearest rupee i.e., commercial rounding. As this is not
the requirement as per Indian Excise Duty Rules and rounding off should be always
up to next Rupee, this special requirement is taken care by way of a User Exit. In
view of this, keep the above two fields blank. Otherwise, MODVAT will not work.
12. 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.
13. CVD Account - CVD Clearing Account to be mentioned here for posting CVD
component of Ecise Duty. The GL Acvcount is 40054.
14. Exchange rate type : You enter the exchange rate type to store different
exchange rates. M is the average exchage rate.
15. Exchange rate type to be used for Export excise duty convers. This is also M only.

16. Name of person who changed object

17. Last changed on
2. Excise Registration ID
In this activity, you maintain excise registration IDs. You create one ID for each of your
business's excise registrations.
CIN India Localization Menu  Global Settings  Excise Registration ID.
Activities
For each excise registration in your business create a registration ID, and state:
o 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.
o The maximum number of items to be printed on each excise invoice
o Whether you are allowed partial CENVAT credits
Settings made :
Excise Registration ID
Uniquely identifies an excise registration within an excise range, division, and

collectorate.
For Chemical Plant, Mumbai & Engineering Division, Mumbai - Following are the
settings made:
Excise Registration ID 999

Excise Code No AACG3741KXM003
Excise Registration R\MF\2908051273
Excise Range V

Excise Division Malad

Excise Collectorate V
Excise Invoice Items 10
Register Set Description GFDCXHGFHDFGHFGFGDDDDDDDD
Patrial Credit of CENVAT Keep it Blank
Similarly, these details should be configured for other plants - Vapi, Dadra and
Barotiwala during roll-out of SAP to these plants.
3. Plant Settings
In this activity, you maintain excise information relating to your plants.
CIN India Localization Menu  Global Settings  Plant Settings.
For each plant:
o Specify whether it is a manufacturing site or a depot.

o Assign it an excise registration ID. You can assign the same ID to more than one
plant, if required.
Following are the settings made
Both Mumbai Chemical Plant and Engineering Plant do come under same
Registration ID 999.
As there are no Depots, attaching the Regn ID does not arise.
Number of GRs( Goods Receipts) per Excise Invoice should alos be mentioned in this
screen.

4. 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.
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 a company has only one set of excise registers then. only one excise group is to be
maintained.
CIN India Localization Menu  Global Settings  Excise Groups.
o Create one excise group for each set of registers that you need to keep.
o Assign the excise groups to plants.
Only one Excise Group is created for Chemical Division and assigned to Mumbai
Chemical Plant.
As the Registers are to be maintained for Engineering Plant, separater Excise Group
has to be defined for Engineering Plant.
5. Maintain Series Groups
In this 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.
Example
- Series group - 001 - excise invoice

- Series group - 002 - 57F4 document
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
o Define excise series groups based on type of outgoing document
o Assign series group to excise registration ID
Path
CIN India Localization Menu  Global Settings  Maintain Series Groups.
We have defined only one Series Group for all outgoing excise invoices.(More series
groups may have to be defined basing on the requirements of the user. One more
Series Group is required for 57F4 Documents as expressed by the Excise Head of the
user company.)
6. Excise Defaults
In this activity, you define which tax procedure and pricing condition types are used in
calculating excise taxes.
Activities
o Enter the tax procedure and the pricing conditions that are relevant for excise tax
processing.
o Specify the purchasing and sales conditions types used for basic excise duty
(BED), additional excise duty (AED), special excise duty (SED), and cess.

o Specify the conditions in the sales order that are used for excise rates.
o Specify the counter vailing duty (CVD) condition type used for import purchase
orders.
Path
CIN India Localization Menu  Global Settings  Excise Defaults.
(Presently the Client Company has to pay only BED but not AED or SED or CESS.
These entries are not required and they are superfluous)
The Required Entries :
Tax Procedure TAXINJ

CVD Condition Type ZCVD
Export tax Code E1
Tax Jurisdiction Code IN00
A/P BED Cond. Type JMO1
A/R BED Cond.Type JEX2
BED Perc.Cond Type JMOD
7. Tax Indicator Maintenance
CIN India Localization Menu  Global Settings  Tax Indicator Maintainence.
Three Indicators 1,2 and 3 are defined for posting the Excise at Normal rate, 50%
concession and Nil duty respectively.

The use of these Indicators are explained at the appropriate place elsewhere in this
documentation.
II. ACCOUNTING
In the following activities, you set up the G/L accounts that are to be used for excise
duty.
1. Maintain Transaction Accounts
In this activity, you specify which G/L 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.
Example
Trans.type Indicator Account name
GRPO CR CLEAR
GRPO CR RG23BED
GRPO DR ONHOLD
Path
CIN India Localization Menu  Accounting  Maintain Transaction Accounts.
Following are the settings made available in SAP for all types of transactions



The above screens indicate all types of transactions with various types of Excise Duty
and other Excise Accounts. The above settings are not disturbed as they indicate all
types of Accounting Entries in various scenarios.
The following entries denote the exact entries necessary for the user:
Transactions
1. 57FC Subcontracting Goods Issue
CENVAT Clearing A/c Dr

To RG 23A BED A/c or
To PLA BED A/c
2. 57NR Non-Receipt for 57F4
CENVAT Reversal A/c Dr

To CENVAT Clearing A/c
To RG 23 BED A/c
To PLA BED A/c
3. CAGR Capital Goods Receipts
RG 23C BED account Dr 50%

CENVAT on hold account Dr 50%
To CENVAT Clearing account 100%
4. CAPE CENVAT on Capital Goods-Tr. Credit in next year
RG 23 BED Account Dr

To CENVAT on Hold A/c
5. DLFC Factory Sale & Stock Transfer- Creation of Excise Invoice(Sales)
CENVAT suspense account Dr

Excise Duty Paid A/c Dr
To RG 23 BED account
To RG 23 BED/PLA Payable A/c
To PLA BED account
6. CEIV canceling the generated Excise Invoice
RG 23 BED Account Dr
RG23 BED/PLA Payable Dr
PLA BED account Dr
To Excise Duty Paid A/c
To CENVAT suspense account
7. DIEX Differential Excise posting

RG 23 BED account Dr
To CENVAT clearing account
8.GRPO Goods Receipt(PO-RM) Excise Invoice Verify/Post
RG 23 BED account Dr
To CENVAT clearing account
9. MRDY Reversal w/o reference of CENVAT Credit
CENVAT clearing account Dr

10. MRRD Reversal in case of Consumption other than production
CENVAT clearing account dr

11. MRWO MODVAT reversals for write off cases
CENVAT clearing account Dr

12. TR6C Adjustment through TR6Challan
PLA BED account Dr

To PLA on hold account

13. OTHR Excise paid on other movements
Excise Duty Paid A/c Dr

14. EWPO Excise Invoice without PO
RE 23 BED Account Dr
To CENVAT Clearing Account
15. UTLZ Fortnightly Utilization
Excise Duty PLA/ RG23 BED Payable Dr

2. Assign G/L Accounts to Transaction Types and Excise Groups
In this activity, you assign the excise and CENVAT accounts to G/L accounts.
For most businesses, one set of accounts will suffice for all transactions.
For each excise group, assign the excise and CENVAT accounts to G/L accounts
separately.
CIN India Localization Menu  Accounting  Assign G/L Accounts to

Transaction Types and Excise Groups.

G/L A/c 19001 - Central Excise Current Account Bal. in PLA

19002 - Bal. with Central Excise RG 23A Part II
19003 - Bal. with Central Excise RG 23A Part II
19005 - Cenvat on hold
40052 - MODVAT clearing A/c
74651 - Excise Duty Collected and Paid
19006 - PLA on hold
3. Maintain Minimum Balances for Excise Accounts
In this activity, you can maintain minimum balances in your excise accounts. When
the balance in these accounts during utilization falls below this level, the system
automatically utilizes funds in the PLA account.
Maintain the minimum balance amount for the excise accounts. If you have more
than one excise group, you can maintain different minimum balances.
CIN India Localization Menu  Accounting  Maintain Minimum Balances for

Excise Accounts.

In Excise Group 99, the following amounts are maintained as Minimum Balances:
PLA BED 30,000/-

RG23A BED 30,000/-
RG 23C BED 30,000/-
No minimum balance is required to be maintained for PLA on Hold A/c as the balance
in PLA on Hold A/c is not available for utilization.
III. LOGISTICS
(Caution : MM Consultant to edit the Documentation on CIN - Logistics

thoroughly)
In the following activities, you make the logistics settings for use in Country Version
India.
1. Subcontracting

The mandatory IMG settings to be set for subcontracting are:
(1) Materials Management  Inventory Management and Physical Inventory 

Goods Issue / Transfer Postings  Define Screen Layout.
For the movement type 541, maintain the field Purchase Order as
an optional entry or as a required entry.
(2) Materials Management  Inventory Management and Physical Inventory 

Output Determination  Maintain Output Types.
Maintain the Output Type. In the Default Values tab strip

Maintain the Dispatch Time and the Transmission Medium. Maintain
the Print Parameter in the Print tab strip.
(This Output Type has to be maintained in the Subcontracting Attributes in CIN

IMG.)
(3) Materials Management -> Inventory Management and Physical Inventory 

Output Determination -> Assign Forms and Programs.
Maintain the Program, FORM Routine and the Form for the Output Type.
(4) Materials Management -> Inventory Management and Physical Inventory 

Output Determination -> Printer Determination  Printer Determination by
Plant / Storage Location
Output device can be maintained here. The Print Immediately option can also
be maintained here.
CIN India Localization Menu  Logistics  Subcontracting
Subcontracting Attributes
The subcontracting attributes help determine conditions for a combination of an

excise group, a transaction type and a sub-transaction type.
The conditions such as the number of excise items per subcontracting challan, if the
non excisable materials have to be filtered or not when the subcontracting challan is
created, the movement type groups for Issues and Receipts and the hierarchy of
determining the excise base value are mentioned here.
CIN India Localization Menu  Logistics Subcontracting  Subcontracting

Attributes


Excise groups 99
Transaction Typ 57FC
Sub Transaction Type 01
Sub Tran Type Text REM O VAL O F CO M PO NENTS UNDER 57F4
Subc. period 180
M vt G rp Issues 0001
M vt G rp Receipt 0002
Filter Non exise x
EI items 10
No. range no. 01
Ass. Val. /Exc Inv Assessable value Table first then Excise Invoice
Subcon O utput Type J!IF
Movement Type Groups for Subcontracting
CIN India Localization Menu  Logistics Subcontracting  Movement Type

Groups for Subcontracting
Movement Group Movement Type Special Stock

0001 122 - RE Return to Vendor
0001 541-GI whose to subc.stck 0 – Parts Prov. Vendor
0002 101-GR goods receipt
0002 542-RE subctrStck toWhse 0 – Parts Prov. Vendor
0002 543-GI issue sls.ord.st 0 – Parts Prov. Vendor
0002 544-GI receipt sls.or.st 0 – Parts Prov. Vendor
( Please check up whether the above entries are correct especially in case of
0001 Movt.Grp - 122 Movt.Type.)
2. Specify Which Movement Types Involve Excise Invoices
In this activity, you specify which movement types relating to goods receipt involve
excise invoices.

The system uses this information during the goods receipt procedure. When you post
a goods receipt using one of the movement types that you have specified here, the
system will prompt you to enter the excise invoice number.
Note
This option cannot be used for processing goods receipts without purchase order.
CIN India Localization Menu  Logistics  Specify which Movement Types

Involve Excise Invoices
(Check up whether the above entries are required for Movement Types
105 & 501.)
IV. Sales & Distribution
Caution : SD Consultant to thoroughly edit the

Documentation on CIN-SD portion
In the following activities, you make the Sales and Distribution (SD) settings for use in
Country Version India.
1. Sales & Distribution Customization
Documentation only:
Pricing
Factory Sales Pricing Procedure - JFACT
This is a template of pricing procedure for Sales from Factory. JMAN is a manual
condition for Excise. When manual override is required for the calculated excise value
it could be given for the condition JMAN. The condition value formula 355 checks and
copies this on to the Basic Excise duty value. UTXJ is the condition in JFACT which
triggers the calculated call of tax procedure TAXINJ. Condition records need to be

maintained for UTXJ with the appropriate tax code. Access sequence JIND has been
assigned to the condition UTXJ. Base value for calculation of excise derived from the
condition base value formula 351. This ensures that if an assessable value is
maintained for the material through Excise rate maintenance (J1ID) then that will be
used as basis for excise calculation. In the absence of an assessable value the selling
price will be used for excise calculation.
JMOD is a FI Tax condition which gets the Basic Excise duty from calculation formula
352. JEX2 is a copy of JMOD and is a Sales pricing condition. The value of JEX2 gets
posted for Excise account key. This ensures that the cost accounting of excise value
paid is done correctly. In cases where commercial invoice is created after utilization
the condition value formula 353 ensures that the actual MODVAT utilized is accounted
as excise. Similarly JAED is a FI Tax condition which gets the Additional Excise duty
from calculation formula 352. JEXA is a copy of JAED and is a Sales pricing condition.
The accounting is done for the value of JEXA. JSED is a FI Tax condition which gets
the Special Excise duty from calculation formula 352. JEXS is a copy of JSED and is
a Sales pricing condition. The accounting is done for the value of JEXS. JCES is a FI
Tax condition which gets the CESS from calculation formula 352.
JCED is a copy of JCES and is a Sales pricing condition. The accounting
is done for the value of JCED.
Sales Tax - Identification of Central or Local Sales tax.
Both CST and LST rates are maintained in one tax code in the same jurisdiction.
(Refer Tax code V8 ). The rates are maintained at the tax v code level. But then
requirement formulae are attached to the LST and CST tax conditions in the tax
procedure. The requirement formula 351 decides whether CST is applicable based on
the Region of the ship-to party and the region of the delivering plant being different.
The requirement formula 352 decides whether LST is applicable based on Region of
the ship-to party and the region of the delivering plant being same.
You can enhance the requirement formula to add your own logic for deciding whether
the tax applicable is CST or LST. All the fields specified in the pricing field catalog are
available in the formula.
Important:
If you are not using requirement formula to decide on the sales tax remove it from the
Tax procedure as well as pricing procedure. Sales tax rates needs to be maintained
separately for each jurisdiction
Manual override of applicability of LST or CST is not possible if elimination is done

using requirement formulae.
LST and CST rates are maintained in different tax codes at different jurisdiction.
( Refer tax code V5 and V6 ) Default

Export Sales Pricing Procedure - JEXPOR
There is no Excise condition in the Exports pricing. But excise can be calculated at
MODVAT utilization.
Stock Transfer Pricing Procedure - JSTKTR
Stock transfer pricing has only excise conditions as it is used only for the calculation
of excise value.
Depot Pricing Procedure - JDEPOT
Depot pricing procedure is exactly similar to the Factory pricing procedure with the
exception that the condition value formula attached to the excise condition is 356.
This ensures that the excise value from the referred excise invoices for the delivery is
picked up and used by the commercial invoice.
Output Determination:
In Standard Customizing for output determination following settings have

to be maintained.
Output determination procedure has to be maintained against the Billing type.
Create an output type and maintain the Driver program, Form routine and the layout
Driver program is the name of the program that the system calls up to process the
output
Form routine is the name of routine to be called up in the processing program
Layout is the name of a Sap script layout set that can be designed as per user
requirement
To enable printing of particular document for partner function, maintain the desired
partner function against the output type.
Printer communication details can be maintained by creating condition records where

partner functions can be assigned to output types
Copy Control from delivery to Billing
(i) When excise and commercial invoice are the same
The copy control path is OR > LF > F2
When excise and commercial invoice are different, i.e. Multiple excise

invoices for a single commercial invoice
The copy control path is OR JF JEX F2
To Maintain copy control for billing documents
Path: IMG Sales and Distribution Billing Billing documents Maintain copying
control for billing documents
Maintain the following entries for Billing type F2 and Delivery type
LF at item level
Item Category TAN
Copying requirements 310
Data VBRK/VBRP 351
Maintain the following entries for Billing type JEX and delivery type
JF at item level
Item Category TAN
Copying requirements 311
Data VBRK/VBRP 351
To check the formula and change source if required

To check / change formula 310 & 311
VOFM > Copying requirements > Billing document > Choose Formula
(Source Text)
To check / change formula 351
VOFM > Data transfer > Billing document > Choose Formula (Source
Text)
Formula 310:
The routine is to be attached to the copying requirement in LF to F2 copy control for

TAN item category. This is to be used when the proforma invoice is used as reference
for the excise invoice. ie. the procedure in sales is
SO -> LF -> JEX -> excise posting by J1II -> F2

The added functionality of this routine ensures that the excise posting takes place
before the billing document is created. In case of depot sale it ensures that the excise
invoice selection has taken place before the billing document is created.
Formula 311:
The additional check done in this routine is that post goods issue is done for the
delivery document and it also prevents multiple creation of the billing/pro forma
document to which this formula is attached multiple times for the same delivery item.
Data transfer - Billing documents:
This routine splits the items of a delivery into multiple billing/ proforma documents.
The split is based on the following fields : Distribution channel, division, delivery,
chapter id and also the maximum number of items in a document is picked up from
the customization and imposed on the document being created
CIN India Localization Menu  Sales & Distribution  Sales & Distribution
Customisation.
2. Assign Excise Invoice Billing Types to Delivery Types
The excise invoice can be created in combination with the customer invoice or
separately (using a Proforma-type invoice). These options are represented in the
system by different document types and document flows. You need to identify the
billing document types that will be used as reference for Modvat utilization and assign
them to the respective delivery document types. Based on the assignment the system
will also carry out consistency checks and validations.
Requirements
The delivery types and copy control need to be maintained.
o Create separate delivery types using IMG -> Sales and Distribution
->Shipping -> Deliveries - > Define Delivery types
o Setup copy control for the delivery types using IMG ->Sales and
Distribution -> Shipping -> Deliveries - >Specify copy control for
Deliveries
o Create Billing types using IMG -> Sales And Distribution ->
Billing-> Billing Documents -> Define Billing Types
o Setup copy control for the billing types using IMG -> Sales And
Distribution -> Billing -> Billing Documents ->Maintain copy control

for Billing types
Standard Settings
Setup has the delivery types LF anf JF defined for standard order OR. Billing type
JEX has been defined for Proforma excise document. Copy control is set as OR -> LF
-> JEX -> F2 and OR -> JF -> F2
Recommendation
It is recommended that you use the standard setup in the delivered system. But if you
so wish you can have your own document types but you need to ensure that all the
steps in the preconditions have been carried out.
CIN India Localization Menu  Sales & Distribution  Assign Excise Invoice
Billing Types to Delivery Types
Please Check up whether all Billing Types & Delivery Types which are being used by
the user are included. The entries not required are to be eliminated

3. Utilization Determination
In this activity, you specify which CENVAT accounts are to be debited by the Fortnight
Utilization of CENVAT report: When the report calculates how much excise duty you
must remit, it automatically proposes which CENVAT accounts the duty should be
debited to. Here, you specify those defaults.
You can either:
o Debit all the excise duty to one account
o Debit the excise duty to more than one account, in which case you specify which
percentage is to be debited to each account
Example
If you want 50% of basic excise duty (BED) to be debited to the RG 23A account and
the remaining 50% to the RG 23C account, you would make the following settings:
Acct name BED perc.

RG 23A BED account 50
RG 23C BED account 50
Alternatively, to debit all of the BED to the RG 23A account, and then RG 23C
account, if there is not enough in the RG 23A account, you would make the following
settings:
Acct name BED perc. +

RG 23A BED account X
RG 23C BED account X
When you come to run the report, the system takes the RG 23A account because it is
the first one you have entered. If this account does not cover the BED, the system
takes the RG 23C account instead.
CIN India Localization Menu  Sales & Distribution  Utilization

Determination

(Check: Second entry PLA on Hold and third entry CENVAT Reversal are not
required)
4. Excise Group – Series Group Determination
In this activity, you can specify which excise group and series group you want to
appear in these fields by default. You can make separate settings for different
combinations of sales organization, distribution channel, division, and shipping point.
Activities
This activity is optional, unless you want the system to automatically create outgoing
excise invoices when you create a customer invoice.
In this case, you must also make the appropriate setting in Customizing for Global
Settings, by choosing Excise Groups and selecting E (Create Excise Invoice
Automatically).
Path
CIN India Localization Menu  Sales & Distribution  Excise Group – Series
group Determination

(Check up: This is not a complete list. After defining series groups as per cilent’s
requirement, separate settings for different combinations of sales organization,
distribution channel, division, and shipping point have tobe made.
Settings for Vapi are also to be cheked.)
V. FORMS
In the following activities, you make the settings for using forms in Country Version
India.
Define Form Types
In this activity, you define which form types you want to record in the system. You can
only use form tracking for the form types that you enter here.
Example
o Form Type - CT3.
o Form description - Concessional Tax form.
o Status - Receive.
Recommendation
Maintain the concessional form types here.
Path
CIN India Localization Menu  Sales & Distribution  Forms  Define form
Types
(Check up Last column – Tax cal for customers . Entries are different.)
VI. TAX DEDUCTED AT SOURCE

Extended Withholding Tax
This solution supports company codes for which you have activated the extended
withholding tax option. To use this solution, you have to work through:
o The standard Implementation Guide for Extended Withholding Tax
o The activities in the CIN IMG for Extended Withholding Tax
As you make the Customizing settings, note the following:
 In the standard IMG, ignore the activities for certificate printing, since this feature
is covered by other activities in the CIN IMG. However, for the certificate printing
programs to work, you must select No certificate numbering in the tax types.
 The various sections of the Income Tax Act are mapped to official withholding tax
keys field of the tax code. We therefore recommend that you assign official keys
to all tax codes.
 Receipient types are used extensively in programs, so we recommend that you

assign receipient types to tax types and then attach these to the appropriate
vendor master records.
The tax types used for one-time vendors must not be enabled for accumulation.
In the Address details for Business Place ensure that the following mapping to print
the details in the certificate
- Name 3 : Income Tax Range
- Name 4 : Income Tax Circle
- Search Term 1 : Tax deduction Account Number (TAN number)
- Street 2 , Street 3 and Street / House Number : Postal address

of the deductor
- Postal Code/City : PIN Code and City of the deductor
1. Define Business Place
In this activity, you define the business places that are covered by your enterprise.
Requirements

If you want to specify a tax office, it must already be defined.
Activities
Enter the required information, for example, type of industry or tax codes.
CIN India Localization Menu  Tax Deducted at Source  Extended

Withholding Tax  Define Business Place
2. Withholding Tax on Clearing Accounts and Adjustment of Tax Items
Assign Document Types
In this activity, you specify which document types you want to use for adjustments to
withholding tax items and withholding tax on clearing accounts.

Withholding Tax  Withholding Tax on Clearing Accounts and Adjustment of
Tax Items  Assign Document Types
3. Specify Which Clearing Accounts Are Liable to Withholding Tax
In this activity, you define which G/L accounts need to be adjusted by the Calculation
of Withholding Tax on Clearing Accounts report.

Enter each G/L account that you want the report to cover, specifying the company
code.

Tax Items  Specify Which Clearing Accounts Are Liable to Withholding Tax
Company Code Account Provision Description

Grow 40051 GR/IR Clearing Account
Grow 40055 Freight Clearing Account
Grow 40056 Customs Clearing Account
4. Specify Which G/L Accounts to Post Withholding Tax and Losses to
In this activity, you specify to which G/L accounts the system must post:
o Withholding tax calculated by the Calculation of Withholding Tax on

Clearing Accounts report
o Any losses incurred when you adjust withholding tax items
In the case of the withholding tax on clearing accounts, it isrecommend that you
maintain separate G/L accounts for each tax type.
For most businesses, a single account will suffice for all losses incurred by
adjustments to withholding tax items.

Tax Items 
Specify Which G/L Accounts to Post Withholding Tax and Losses to
We have not identified any GL Accounts as the client has no requirement for posting
Losses incurred by adjustments to withholding tax items.
Determination of Tax Due Dates
Assign Factory Calendars to Business Places
In this activity, you effectively specify which days the tax offices that you work with are
open. The system uses this information when you post a vendor invoice, so that it can
allow for public holidays when it determines the tax due date.
This activity is optional. If you do not make any entries, the system still determines the
tax due date, but without reference to any factory calendar.

Requirements
You have maintained factory calenders for each of the calendars followed by the tax
offices.
Activities
For each business place (tax office):
o Assign a factory calendar
o Specify whether, in the event of a tax due date falling on a

holiday, the office requires you to remit the tax on the day before
the holiday, or on the day after.

Withholding Tax Determination of Tax Due dates  Assign Factory
Calendars to Business Places
Maintain Tax Due Dates for Tax Types
In this activity, you maintain the various tax due dates. Because due dates can differ,
depending on the withholding tax type and recipient type, you can maintain the dates
at this level.
Note :-
Make sure that you maintain entries for all the recipient types that you use.
Activities
For each permutation of official withholding tax key and recipient type, specify when
the tax has to be remitted:
o Where tax is due on the seventh day of each month, enter 777 in the
tax due date field.
o Where tax is due in a specific number of days' time after being

posted, enter this number in the field. For example, if the tax has
to be remitted within three days, enter 3.


Withholding Tax Determination of Tax Due dates  Maintain Tax Due Dates
for Tax Types
Configuration has to be made for ESI and PF also
Creation of Remittance Challans
Maintain Document Type for Challan Update
In this activity, you specify which document type the withholding tax remittance report
is to use to post clearing documents

Withholding Tax Creation of Remittance Challans  Maintain Document Type
for Challan Update

Maintain Number Groups
In this activity, you group together the permutations of company code, business place,
and official withholding tax key that you want to remit withholding tax for. You can
assign the same group number to more than one permutation, if you need to.

Withholding Tax Creation of Remittance Challans  Maintain Number
Groups
Assign Number Ranges to Number Groups
The Number Group maintained in the step ' Maintain Number Groups' is attached to a
Number Key here. This number key is referred to in the number range maintenance.
This two step maintenance facilitates maintenance of number ranges for 3 entities -
company code, Business Place and section.

Withholding Tax Creation of Remittance Challans  Assign Number Ranges
to Number Groups

Maintain Number Ranges
In this activity, you maintain the number ranges that the system is to use to number
the challans.
Activities
Define a number range for each number group that you have defined in the previous
activity.

Withholding Tax Creation of Remittance Challans  Maintain Number
Ranges
Transaction Code J1INumber

Posting of Withholding Tax Certificates from Customers
In this activity, you make the settings required for when you:
o Post a withholding tax certificate sent to you by a customer

o Create a remittance challan
Activities
Specify:
o The G/L account number of the customer tax creditable account, to

which the system is to clear the withholding tax when you post a

customer withholding tax certificate
We recommend that you define a separate customer tax creditable account for each
section of the Income Tax Law (that is, for each official withholding tax key). Then,
when you come to post tax withholdings made by your customers, the tax is posted to
different accounts, depending on the section. This procedure makes it easier for you
when you come to choose which tax items you want to clear.
CIN India Localization Menu  Tax Deducted at Source  Extended Withholding

Tax Posting of Withholding Tax Certificates from Customers
Transaction Code J1INCUS
This is not yet configured for the user.
Vendor Withholding Tax Certificates
Maintain Number Groups and SAPscript Forms
In this activity, you specify which SAPscript forms you want to use to print the vendor
withholding tax certificates.
Requirements
You must have created the SAPscript forms already. A form is supplied with the
standard system, J_1IEWTCERT, which you can use as the basis for creating your
own forms.
Activities
For each section of the Income Tax Law (official withholding tax key):
Specify which SAPscript form you want to use If different tax offices require different
forms, you can enter different forms for different offices.

Specify what number group you want for each certificate. Ultimately, this information
determines which number range the system uses to number the certificates. You
assign the number range to the number group in the next two activities.

Tax Vendor Withholding Tax Certificates  Maintain Number Groups and
SAPscript Forms
Transaction Code J1INCRT
Assign Number Ranges to Number Groups
In this activity, you assign the number groups to number ranges, both of which you
defined in the previous two activities. For Classic TDS certificate Printing, the Number
groups are assigned t o sections . For EWT
Certificate Printing, the number groups are assigned to a combination of Business

Place and Section

Tax Vendor Withholding Tax Certificates  Assign Number Ranges to Number
Groups
Transaction Code J1INCTNO

Maintain Number Ranges for Certificates
In this activity, you maintain the number ranges that the system is to use to number
the vendor withholding tax certificates.
Activities
Define a number range for each number group that you have defined in the previous
activity.

Tax Vendor Withholding Tax Certificates  Maintain Number Ranges for
Certificates
Transaction Code J1NCT

Maintain Vendors PAN for Certificates
In this activity, you maintain your vendors' personal account numbers (PANs). This
information is then printed on their withholding tax certificates.
Activities
Carry out this activity for all of the vendors that you withhold tax from.

Tax Vendor Withholding Tax Certificates  Maintain Vendors PAN for certificates
Transaction Code J1NCT
EXCISE RATE MAINTENANCE

Excise Master
Transaction Code J1ID
I. MASTER DATA
1. Chapter ID
On this screen, all Chapter IDs and corresponding descriptions as described in the
excise tariff structure are incorporated. This information is used when you create
excise invoices and is also shown in the various excise registers.
2. Materials & Chapter ID Combination
On this screen, the excise data relating to materials are maintained. For each
material, the following are specified:
 Chapter ID
 Whether the material can be sent to subcontractors
 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)
This information is valid for a given plant. If the information is valid for all of your
plants, however, leave the Plant field blank.
A sample view of settings is given hereunder:
Material Plnt Chap. ID Sub Matl GRsI Declared decl.date

contr's Type per EI
20383 PLCH 3824.9 F 1 20.01.040
400127 PLCH 2811.9 X 06.10.200
400128 PLCH 2811.9 X 06.10.200
400150 PLCH 2811.9 X 06.10.200
400178 PLCH 2345.67 X 06.10.200
400240 PLCH 2811.9 X 06.10.200
400291 PLCH 2811.9 X 06.10.200
3. Material Assessable Value
On this screen, you maintain the net dealer price and the assessable value of all
materials that you send to subcontractors.
These values serve as the excise base value when you send the material to
subcontractors and tells the system how much excise duty to reverse from your
CENVAT account should the subcontractors fail to return the materials to you within
the given time limit
Following are the sample idea of settings to be made:
4. CENVAT Determination
On this screen, you specify which raw materials are used to produce which finished
(or semi-finished) goods. The system uses this information to determine whether it
you can claim a CENVAT credit for a material.

II. EXCISE STATUS

1. Vendor Excise Details
On this screen, you enter your vendors' 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
purchases from the vendor, you must also:
 Assign it a vendor excise duty status
 If the vendor qualifies as a small-scale industry (SSI), you must also specify:
 What its SSI status is (which you must first have defined under SSI
rates, see below)
 Whether or not it is participating in the CENVAT scheme
2. 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)

sales to the customer, you must also assign it a customer excise duty status.
3. 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.
SSI Status of Vendor

Small-scale industry status - for entering excise duty percentage for vendors that
qualify as small-scale industries.
Procedure
Define a status for each category (or slab) of sales volume. For each slab, specify the
rate of excise duty for:
o Vendors who are participating in the CENVAT scheme

o Vendors who are not participating in the CENVAT scheme
When you have defined the statuses, assign them to the vendors who qualify as
small-scale industries (go back to the previous screen and choose Vendor Excise
Details ).
Rate of Excise Duty
Enter the rate of basic excise duty that is to be levied in place of the standard rate.
Rate of Excise Duty for Small-Scale Industries
The rate of basic excise duty that is to be levied in place of the standard rate,
expressed as a percentage of the basic excise duty.
Examples
If a vendor is to levy excise duty at 50% of the standard rate, you would enter 50
here.
This is the rate of duty that will apply if the vendor is participating in the CENVAT
scheme.
4. Excise Indicator for Plant
On this screen, you enter your plants' tax registration numbers, which are used for
various forms of correspondence and reports:

purchases from this plant, you must also assign it a plant excise duty.

5. Excise Indicator for Plant and Vendor
On this screen, you define the final excise duty indicator.
The values entered here along with the excise indicator for the company are used to
determine the final indicator for excise duty. Excise duty rates are maintained for the
final indicator.
6. Excise Indicator for Plant and Customer
On this screen, you define the final excise duty indicator.

III. EXCISE RATES
1. 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
 As quantity-based (that is, a fixed amount for a given quantity)
 As a combination of both
For each rate, specify until which date it applies.
2. 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, or to a single
material from one vendor only. If you have an exceptional rate for a customer–
material combination, you can maintain it here as well.
As there are no such entries as of now in the client’s business processes, this screen
is left blank.
3. 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.
Entries are not required to be entered here, as sales tax set off will be automatically
taken care of from TAXINJ and the relevant tax codes settings.

Country Vers. India Settings

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Country Vers. India Settings

Uploaded by

Copyright:

Available Formats

GROWEL SOFTECH PVT LTD

PROJECT:SAP R/3 IMPLEMENTATION.

COUNTRY INDIA (CIN)TAXES VERSION 3.0A

From SAP for going to CIN type Transaction Code – J1IT

CIN India Localization Menu  Global Settings

CIN India Localization Menu  Global Settings  Company Settings.

Transaction Code J1IT

Maintain company-specific default values for processing excise documents. Default

Following are the settings made:

1.Modvat document type

MP (Indicates the Doc Type of FI document posted ).

2.Debit Account Overwrite Indicator

Debit Account Overwrite Indicator. X - Indicates debit accounts can be overwritten.

3. Automatic Balances Adjustment Indicator

4. Excise Year Start Month

5. Excise Invoice selection Procedure

CONFIGURATION MANUAL CIN MODULE Page 1 of 41

6. Number of Excise Invoices to be selected in the excise invoice selection.

7. Days to be considered for excise invoice selection

Number of days from document date for excise invoice selection.

8. Document Type for Posting TDS (For Financial Documents)

9. Document Type for Posting TDS (For Financial Documents) on Utilisation

10. Indicator for item level excise duty round off

12. Immediate Credit on Capital Goods

CONFIGURATION MANUAL CIN MODULE Page 2 of 41

16. Name of person who changed object

CIN India Localization Menu  Global Settings  Excise Registration ID.

Transaction Code J1IT

o The maximum number of items to be printed on each excise invoice

o Whether you are allowed partial CENVAT credits

Uniquely identifies an excise registration within an excise range, division, and

Excise Registration ID 999

CONFIGURATION MANUAL CIN MODULE Page 3 of 41

Excise Division Malad

In this activity, you maintain excise information relating to your plants.

CIN India Localization Menu  Global Settings  Plant Settings.

Transaction Code J1IT

For each plant:

o Specify whether it is a manufacturing site or a depot.

Following are the settings made

As there are no Depots, attaching the Regn ID does not arise.

CONFIGURATION MANUAL CIN MODULE Page 4 of 41

In this activity, you define excise groups.

Under normal circumstances, excise authorities require every business to maintain

CIN India Localization Menu  Global Settings  Excise Groups.

Transaction Code J1IT

Following are the settings made

5. Maintain Series Groups

- Series group - 001 - excise invoice

CONFIGURATION MANUAL CIN MODULE Page 5 of 41

- Series group - 002 - 57F4 document

o Define excise series groups based on type of outgoing document

o Assign series group to excise registration ID

CIN India Localization Menu  Global Settings  Maintain Series Groups.

Transaction Code J1IT

Following are the settings made

CONFIGURATION MANUAL CIN MODULE Page 6 of 41

CIN India Localization Menu  Global Settings  Excise Defaults.

Transaction Code J1IT

Following are the settings made

The Required Entries :

Tax Procedure TAXINJ

7. Tax Indicator Maintenance

CIN India Localization Menu  Global Settings  Tax Indicator Maintainence.