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Former Member

Export Against Under Claim of Rebate

Hi All,

I would like to know the process for Export Against Under Claim of Rebate.

Thanx&Regards,

Ramesh K

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2 Answers

  • Best Answer
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    Former Member
    Sep 03, 2008 at 04:21 PM

    Process is as follows:

    Order to Invoice is the same as for std order.

    When you create the excise Invoice in J1IIN, in the utilisation screen be sure to ensure the No Bond is ticked in blue.

    This will ensure that the Excise Invoice type is an Export type and under claim for rebate.

    After this you need to create an ARE1 in Tcode J1IA101. IN this ensure that your details are filled and duties get displayed.

    Save the ARE1. You also need to post the ARE1, update it later once it comes back from customs and sent to excise and closed.

    Once this is done the rebate order from excise will be issued.

    You need to figure out how to take the rebate order into your company. Sometimes excise gives it as a cheque in which case you can post the amount in FI. If you want to post it into RG23A Part 2 you need to use TR6 challan from J1IH. This requires a lot of configuration and I hope this is in place.

    regds

    Jude

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  • Sep 04, 2008 at 03:31 AM

    Dear Ramesh

    The process goes like this as for as Rebate is concerned.

    Export under Rebate is the procedure in which the exporters first pay the central excise duty before clearing the goods from the factory and subsequently get it back by applying for rebate after the goods are exported.

    They have to apply to the Division or to the Maritime Commissioner (designated exclusively to look after all Export related issues) as the case may be, along with the required documents (usually the Export Promotion copy of the Shipping Bill and Bill of Lading) to prove that their goods had actually been exported.

    Rebate can be claimed for both the inputs (purchased from indigenous markets and used in the manufacture of exported goods) as well as for the final products. Normally, rebate is being widely opted by non-excise assessees (for example garment exporters) who procure raw materials locally, manufacture their final products and export them. It is similar to Drawback of Customs duties in respect of Imported raw materials

    In SAP, apart from CIN configuration, you also need to maintain the IMG setting in Logistics-General --> Tax on Goods Movements --> India --> Business Transactions --> Outgoing Excise Invoices --> Maintain Default Excise Groups and Series Groups. Here for the combination of your sales area, shipping point, plant, excise group and series group, you have to [maintain N under the tab Export]

    thanks

    G. Lakshmipathi

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