My company is an engineering Industry, Which takes Projects of Erection and Commissioning of Plants.
I am Stuck in scenario where Material is moved directly to site and we have to just add our Margin and Pass on the Excise Credit to the customer, Below is an Example:
B (my company) is a dealer and purchase materials from its principal A by paying Base amount (say Rs 100 ) & Excise duty (say BED 12%, Ecess 2% & SEcess 1%), comes to Rs 115 and applicable VAT (say 5%)on it . Thus landed value comes to Rs 120.75. Again B sells this material to a manufacturer C for a base amount (say Rs 125) and pass on the excise value he paid to A (Rs 15,ie Rs 125 + 15 =140) and applicable VAT (say 5%) on it. Thus landed value comes to (Rs 140 + Rs 7 =147).
Please suggest, MM Process and FI accounting Entries for Excise Duty in the books of "B" Company only.
How we will book excise in "B" Books and how at the time of Sale Invoice it will be pass on to the customer.
Please Guide if any body is having the same scenario.
Thanks in Advance.