Skip to Content
avatar image
Former Member

y Excise duty ..?

hi all

For what kind of material we have to capture, post and utilize the excise duty in manufacturing plant.

Because , we are procuring the more spare parts for our plant.

But for that spare parts also excise duty we are paying to vendor .

How to utilize ..

Please explain me the process..



Add comment
10|10000 characters needed characters exceeded

  • Follow
  • Get RSS Feed

2 Answers

  • Best Answer
    Oct 17, 2008 at 07:17 AM


    This component enables you to analyze tax-relevant movements of goods that are subject to excise duties. It calculates the amount of the excise duty payments and, upon request, prints the results on forms for submission to the appropriate authorities.

    Excise duties are duties that the state imposes as taxes on the use or consumption of certain goods. The liability to pay taxes is incurred when taxable goods are moved under customs seal from a location to a taxable location.

    The state imposes excise duties, for example, on petroleum products, tobacco, alcohol and alcoholic beverages.

    Now as per your requirement, for the SPARE PARTS:

    This component:

    · Is used in XX countries, but can also be used in countries outside the XX.

    · Is geared (in the standard system delivery) to meet the requirements of the XX industry

    · Can be adapted to map excise duties in other (Automobile etc) industries.

    Hope it satisfies you...

    You can also check the Sap note 716971

    Hope it helps..



    Add comment
    10|10000 characters needed characters exceeded

  • Oct 17, 2008 at 07:21 AM



    CENVAT utilization is how we are offsetting the input excise paid against output excise collected.

    The Cenvat utilization is reflected by the settings made in J1ID.

    In J1id.

    Companies are required to file with the Excise authorities, a list

    containing the excisable finished products manufactured and the

    excisable input materials required for such production, to avail Modvat.

    It is possible that an input material may be used in the production of

    more than one finished product. However, if such a material is mainly

    used for the manufacture of a particular finished product then the input

    material is identified to be the default material. The default indicator

    is marked for such material.

    The need for this is that since we have to offset the excise paid by us for the purchase of that raw material and the excise we are collecting as we produce another material using that raw material.



    Add comment
    10|10000 characters needed characters exceeded