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Excise duty calculation on Assessable value in PO

Dear Team,

We are facing critical issue in Excise Duty calculation, Excise is calculating on basic price for our normal procurement and we are selling the same at MRP cost... Now the issue is Excise Duty has to be calculated on Assessable value (65% on MRP value) instead of basic price in PO.

Example:

Basic Price - 100

MRP - 300

Assessable value - 195

Excise Duty - 24.10 (195*12.36%)

Regards,

Sai

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1 Answer

  • Best Answer
    Jan 09, 2015 at 06:22 AM

    You can create a new manual statistical condition type in MM Schema for MRP. If 65% is not fixed then you have to create another condition type for abatement also.

    Inside Taxprocedure TAXINN/TAXINJ you have to put a routine against BED condition type so that the Base value for calculation of BED can be changed. Rest all remains the same.

    Take the help of technical team for the routine. Logic and validations or restrictions can be made inside the routine.

    Regards
    Binoy

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    • Hi Sai,

      Sorry for the late reply. I think you are close to the solution. You should not change the Procedure too much.

      MRP and Abatement condition types should be kept independent of calculations in the procedure. It is only for changing the base price already got for BED(JMOP) making use of the routine. If that is the case you will get base price (BASB) added to Excise duties which are modified for calculation of VAT.

      For Eg:

      10 BASB

      30 ZMRP(Independent condition type used to store MRP value)

      40 ZABA(Independent condition typeused to store Abatement %)

      70 JMOP From 10(Routine XXX which will change the base value for calculating JMOP with a formula MRP*Abatement %)

      270 ZVAT(As usual will calculate from BASB+Excise duties)

      Hope this is the way you have done this. Steps 30, and 40 should not come in any "From -to"steps.

      This is working well with one of our clients.

      Regards

      Binoy