Agenda Day 1

Topics
CIN Introduction Various Taxes Applicable in India. With holding tax.

Duration
30 min

15 Min

CIN Organisational elements

Input Taxes with some demo. Question Answers and Next Steps

60 Min
120 Min 30 Min

Agenda Day 2
Topics
Services tax

Duration
30 min

Output tax.
Reports

120 Min
30 Min

Various Taxes Applicable in India 1/3

Withholding tax. Excise tax.
Tax on manufacturing of goods only. Excise has different Deduction of tax on few services received. Example rent,

contracting charges, professional fees.

components, called Basic Excise Duty, Additional Excise Duty, Special Excise Duty, Educational Cess of Excise Duty. Excise Duty paid on Purchase of raw material (input tax) can be adjusted against liability for excise on finished goods (output tax).
Tracking of Input and output material through registers

RG23 A Part 1, Part 2 and RG1 in manufacturing plants.

Excise duty paid on purchase of Fixed assets can be

adjusted against excise payable in two two annual installments. RG23 C

Various Taxes Applicable in India 2/3

Customs
Tax on Import of goods. Customs duty has few components. Basic Customs duty, Cess on Customs duty. No adjustment of tax is
allowed

Countervailing duty (CVD), Additional CVD, Educational Cess on CVD

The input tax credit can be claimed on the basis of valid documents (bill of entry) after the receipt of goods into the factory. If goods are imported for trading CVD information needs to be captured only in registers and used for invoice printing

CVD treatment is same as Excise duty

Octroi
This is as an entry tax Applicable to the goods which are coming into few
municipal corporation area. Buyer pays this amount to municipal

Various Taxes Applicable in India 3/3

Sales tax
This tax is applicable on sale of Goods. Here we have different tax
authorities.

Central Sales Tax (CST) this is Applicable when sale happens

between parties in two different stats. Input tax can not be adjusted against output tax part of you inventory cost.

VAT In most of the states this now applicable Tax on sale of goods if
buyer and seller are with in same state. Input tax VAT paid can be adjusted against output tax VAT.

Local Sales Tax (LST) This is applicable in few states who have
not changed to VAT. Tax on sale of goods if buyer and seller are with in same state. Input tax LST can not be adjusted against output tax LST.

Withholding Tax Scenarios

1 3 2

PO Created ME21N

Goods Receipt MIGO

Advance payment to vendor F-48

Withholding tax posted on advance

Invoice Booking MIRO At the time of Invoice Adjust the Withholding tax base manually if Down payment already exists

Withholding tax posted only for balance amount

5

At the time of Invoice No adjustment is done. Withholding tax posted on invoice amount

Clear Down payment F-54

Without advance payment

Advance payment

Withholding Tax (Tax deducted at Source-TDS) CIN Process overview

J1ILN India Localization Menu At month end - Deposit TDS collected with govt. J1INCHLN - Post (Payment entry TDS Liability ac Dr, Bank CR) Bank gives challan no after clearance of cheque J1INBANK - Update Bank Challan Number table J_1IEWTCHLN updated

Withholding tax returns to Govt. authorities J1INAR - Annual Return

Print TDS Certificates J1INCERT - Print

Withholding Tax (Tax deducted at Source-TDS) CIN Impact 1/2

Vendor master to be updated
with Withholding tax codes.

Country specific table J_1IMOVEND to hold information for a Vendor like tax registration no with various authoriteis

Withholding Tax (Tax deducted at Source-TDS) CIN Impact 2/2

Use of business place assign to plant for reporting as multiple Tax Registrations for different locations.

With holding tax has few components like Basic, Surcharge, Education Cess

Country specific configuration exist like Challan and certificate numbers, Providing TDS for Services Received but Invoice not received

Withholding Tax (Tax deducted at Source-TDS) CIN Few tips

Few Configurations steps are not part of IMG steps.
section code Field not available on the screen to input value in case of special GL transactions. Changes made in table T019 for field DYNNR. 0304 Maintain withholding tax challan no J_1IEWTNUMGR_1

Organizational Elements - CIN Excise Group Concept

An excise group allows one to maintain a separate set of excise registers and excise accounts. The RG23A, RG23C and PLA serial numbers are created for an excise group If each plant in the company has only one set of excise registers then one needs to maintain only one excise group

Organizational Elements - CIN

Excise Groups for
Excise Group E1 Plant 1100 -Refinery Plant 3100 Excise Group E1

Excise Group E2

Plant 3201 (Haldia Depot)

Excise Group E2

Organizational Elements - CIN

Series Group Concept

Based

on excise regulations and exemptions from the authorities one can maintain multiple number series for outgoing documents. Each of these series has to be declared to the excise authorities.

Organizational Elements - CIN

Series Groups
Company Code
Plant# XXX

Excise Group#

Series Group1

SeriesGroup2

Series Group3

Series Group#

Organizational Elements CIN Series Groups EXCISE

A1 A2 A3 Excise Group E1 REF.& NRMT A6 B1 A4 A5

B2
Excise Group E2 HALDIA DEPOT B3 B4 B5 B6

Indigenous Sales (Domestic) Export Sales SD stock Transfer / Returns Scrap &Project Surplus Sales Indigenous Sales (Domestic) Input/Capital Stock Transfer Export Sales / return SD stock Transfer / Returns MM -Subcontracting
Input/Capital Stock Transfer / return MM -Subcontracting
Scrap & Project surplus sales

CIN ORGANISATIONAL ELEMENTS -EXCISE

PLANTS REGISTRATIONS EXCISE GROUPS SERIES GROUPS

Plant 1

E1-Excise Group1

Registration 1

Plant 2

E2-Excise Group 2

Registration 2

Plant 3 DEPOT

Business Places

IN04
1100

IN10
2300

IN13
4300

IN23
5101

IN33
2301

IN35
2200

2100

5102

3300

2201

3100

5103

3301

3200

5100

5104

3302

3201

3202

Business Places
Business Places
IN04 IN10 IN13 IN23 IN33 IN35 Assam Delhi Haryana Meghalaya Uttar Pradesh West Bengal
Plants
1100 2100 2200 2201 2300 2301 3100 3200 3201 3202 3300 3301 3302 4300 5100 5101 5102 5103 5104 Refinery - Numaligarh Office - Guwahati Office - Kolkata Office - Siliguri Office - New Delhi Office - Lucknow Depot - NRMT Depot - Budgebudge Depot - Haldia Depot - Siliguri Depot - Mughalsarai Depot - Mathura Depot - Baitalpur Dispt Unit - Rewari NES, Numaligarh Dkaiah Bindihati Bapung Shangpung

Business Places

IN04
1100

IN10
2300

IN13
4300

IN23
5101

IN33
2301

IN35
2200

2100

5102

3300

2201

3100

5103

3301

3200

5100

5104

3302

3201

3202

BUSINESS PROCESSES

Legal View Procurement of Raw Materials

Domestic Vendor

Excise Invoice
Price: 1000 Qty : 10 PC Duty 16% - 160

Excise Stock/ Part I Register Deposit Rs. 160 as Duty to the Govt.

Receipt Qty : 10 PC
GR at Warehouse

CENVAT / Part II Register Excise Invoice Capture and Post

ED Credit : Rs 160

Stock Transports
Excise Invoice Supplying Plant Price: 1000 Qty : 10 PC Duty 16% - 160

Excise Stock/ Part I Register Deposit Rs. 160 as Duty to the Govt.

Receipt Qty : 10 PC
GR at Warehouse

CENVAT / Part II Register Excise Invoice Capture and Post

ED Credit : Rs 160

Sale From Factory

Supplying Plant
Excise Invoice Price: 1000 Qty : 10 PC Duty 16% + 160 Dispatch

Debit: Rs. 160

Excise Duty Payable A/C

Fortnightly utilization CENVAT/Part II Register PLA Register

Sale From Depot

Depot

Invoice Price: 1000 Qty : 10 PC Duty 16% + 160

Dispatch

Debit: Rs. 160 Reduce qty by 10

RG23D Register

Export Sale
Supplying Plant Under Bond Price: 1000 Qty : 10 PC Duty 16% + 160 No Bond Update Excise database

Invoice

Debit: Rs. 160

Dispatch

Excise Duty Payable A/C

Fortnightly utilization CENVAT/Part II Register PLA Register

Excise Master Data : Material Master

Chapter ID

Material Chapter ID Combination & Material Type Assessable Value for the material CENVAT Determination for the material

EXCISE MASTERS CHAPTER ID

Excise Master Data: Vendor Master

Vendor Excise details such as the ECC Number, Range, Collectorate Vendor Excise Indicator SSI Status Vendor Type Vendor Excise Indicator Plant Excise Indicator etc..

Final Excise Indicator

Excise Master - Vendor

VENDOR MASTER

Input Tax Rates

Excise Masters TAX Calculation Procedure TAXINN Condition Records for Tax Conditions TAX Codes

TAX PROCEDURE - TAXINN

AUTOMATIC POSTINGS ACCOUNTS

TAX PROCEDURE - TAXINN

TAX PROCEDURE - TAXINN

TAX PROCEDURE - TAXINN

Excise Rate Determination

NO MATERIAL EXCISABLE YES VENDOR EXCISABLE NO

NO EXCISE CONDITION RECORDS?

NO EXCISE

GET RATES FROM CONDITION RECORDS

Determination of Excise Rate

Purchase Order TAX PROCEDURE - TAXINN ITEM 10 BASE AMOUNT 1 BED 16 % TAX CODE BASE AMOUNT BED SET OFF AED SET OFFSED SET OFFJMOP JAOP JSOP

----------------------------------------CONDITION TYPE JMOP ACCESS SEQUENCE ZEXC ACCESS SEQUENCE ZEXC 1.Tax Classification

2.Plant/Vendor/Material
3.Country/Plant/Ctrl code/Material 4Country/Plant/Ctrl code 5.Country/NBM-NCM Code 6.Country/Exc.Ind.Ve/Matl type 7.Vendor/Matl Group

Records available for JMOP No Record Available Valid Record Available

Procurement: Tax View of a Purchase Order

Procurement: Tax View of a Purchase Order

Legal View: Procurement of Raw Materials

Excise Invoice Price: 1000 Qty : 10 PC Duty 16% - 160 Domestic Vendor

Excise Stock/ Part I Register Deposit Rs. 160 as Duty to the Govt.

Receipt Qty : 10 PC
GR at Ware House

CENVAT / Part II Register Excise Invoice Capture and Post

ED Credit : Rs 160

Procurement: Excise Invoice Capture Scenarios

Excise Invoice Capture for a Purchase Order / Scheduling

Agreement / Contracts Excise Invoice Capture for a Goods Receipt

Excise Invoice Capture for imports Purchase Order

Excise Invoice Capture without Purchase Order Excise Invoice Capture for a Stock Transport Order

Procurement: Excise Invoice Capture for Single /Multiple PO

Purchase Order 1 Qty : 10 PC Base Price : 1000 ED: 16%=160 Net Price = 1160

OR
Single Excise Invoice Purchase Order 1 Qty : 10 PC Base Price : 1000 ED: 16%=160 Net Price = 1160

Purchase Order 2 Qty : 10 PC Base Price : 1000 ED: 16%=160 Net Price = 1160

Procurement: Goods Receipt

MIGO Transaction is delivered with CIN Functionalities Captured Excise Invoice can be referenced in MIGO

Multiple Goods receipts can be done against a single Excise Invoice

GR for multiple POs can be done simultaneously

Inventory valuation is based on excise invoice

Part I gets created for excisable goods

RECEIPT OF GOODS ACTIVITY- DONE AT WARE HOUSE

RG23A / RG23C PART 1 POSTING IS HAPPENING

PROCUREMENT GOODS RECEIPT

PROCUREMENT GOODS RECEIPT

Procurement: Goods Receipt

ACCOUNTING ENTRIES GOODS RECEIPT - MIGO
Inventory Account Dr.
GR/IR Clearing Account Cr.

Procurement: Excise Invoice Post

Simulation of accounting document with account postings at line items

Accounts are determined from transaction type GRPO Rejection code for posting the CENVAT amount to ONHOLD
account

Sub Transaction Type used for alternate determination of accounts Part II entry gets created in RG23A or RG23C based on the material type For Capital goods 50% Credit is moved to CENVAT and balance 50 % is kept on hold. POSTING IS DONE BY EXCISE SECTION.RG23A / RG23C PART 2 POSTING IS CARRIED OUT

SAP Enjoy Transaction for Excise Invoice

SAP Enjoy Transaction for Excise Invoice