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Former Member

Excise and sales tax for Free of charge delivery

Friends,

Kindly explain somebody whether Duty and taxes are leived during free of charge delivery. If it is levied then what is basis for calculating duty?

Plesse help on this.

Thanks in advance

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1 Answer

  • Best Answer
    Jul 20, 2009 at 04:24 PM

    Obviously duty and tax are applicable.

    Of course, you need to account these as expense account for which, you should have a seperate G/L Account and the same has to be assigned in VKOA.

    thanks

    G. Lakshmipathi

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    • I am sure, you should be aware of Excise rule which says that any product that goes out of a manufacturing plant, the manufacturer has to account it and the relevant duty amount should be credited to the concerned Range Office.

      It is immaterial for the Excise people, whether the seller is delivering a product on free of cost or not. So you have to configure accordingly in SAP also.

      thanks

      G. Lakshmipathi