Skip to Content
0

Whats are the pre - checks and migration steps to declare all the plants as excisable depot in SAP

May 03, 2017 at 09:16 AM

96

avatar image

We have a trading business where material is procured through import and moved to warehouses for sale and while doing sale customer invoice is given with VAT or CST. As per current requirement my customer( dealer) wants excise invoice. Please suggest what are the pre-checks,migration steps & business impacts to declare the plant as depot for further sale.

Regards

Archana Singh

10 |10000 characters needed characters left characters exceeded
* Please Login or Register to Answer, Follow or Comment.

2 Answers

G Lakshmipathi
May 03, 2017 at 11:29 AM
1

Couple of questions

  1. Are the imported material being sold as is condition or some process is being carried out ?
  2. When you say "import and moved to warehouse", you also asked the impact in changing plant as a deport. Are the imported material being stored in a plant or a warehouse?

The general impacts would be excise registers would be different. In case of manufacturing plant, it is RG23A and in case of Depot, it is RG23D

Show 1 Share
10 |10000 characters needed characters left characters exceeded

Thanks Lakshmipathi for your revert !

We are currently importing the material and loading the CVD and other tax amount on material. further it is moved to warehouses for sale through dealer and distribution channel.As on date we provide invoice to customer with VAT and CST amount as applicable, but going ahead customer want excise invoice as well to avail tax benefit. In order to Provide the same we need to maintain all the excise set up by changing the material , customer & vendor master along with plant excise setup. Now in such case wanted to know is there any pre- check required before doing all the changes and need to plan any cut over strategy.

Thanks in advance !

Regards,

Archana Singh

0
Jyoti Prakash
May 03, 2017 at 12:06 PM
0

As per the previous Excise Rules, when it is a trading scenario and you are not manufacturing the goods. Then your goods are not applicable for the excise duty. Moreover, even for the depot sales, your goods need to be moved the depot from the Manufacturing plant for the depot sales.

Refer the following link to understand business scenarios - GOODS AND SERVICES TAX (GST) - Operational Impacts and Concerns

Further, I would recommend you to check new GST rules and talk to your Indirect Taxation team in your organization.And see how you can accommodate this business requirement in GST. Once you have solution aligned then map that to SAP.

Show 1 Share
10 |10000 characters needed characters left characters exceeded

Thanks for your Revert !

I wanted to know the process and pre- checks required if during middle of the business I want to declare my warehouse as depot .What could be the impact on existing stock.

Thanks in Advance !

Regards,

Archana Singh

0