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Information on Purchsing cycle

Former Member
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Dear All,

Can anyone tell the following:-

1. Difference in TAX code between Subcontract and Regular(std Vendor)

A. Why we are not considering TAX while doing Subcon, why we are considering TAX while doing regular(Std vendor)

2.What is the use of Cenvat posting.

3.What do you meant by PART1Enrty in MIGO,

A. what is the benifit if we choose this.

Please help me to get the onfo on these cases.

Regards,

Nagaraj S

Edited by: Nagaraj S on Aug 26, 2009 12:20 PM

Edited by: Nagaraj S on Aug 26, 2009 1:38 PM

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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1. Difference in TAX code between Subcontract and Regular(std Vendor)

A. Why we are not considering TAX while doing Subcon, why we are considering TAX while doing regular(Std vendor)

You are actually not buying any item from SC Vendor ... they majorly charges for the services rendered and service tax is levied on the amount. Std vendor sends you the material and have to charge the sales tax/ excise (if applicable) as par the state law. Also service tax is not levied by each and every business hence the tax in SC Vendor case is optional. They do charge taxes if they are also using / adding some items in the processing

2.What is the use of Cenvat posting.

On certain taxes, govt provides some rebate on the taxes paid to vendor. Business claims for the credit in their quarterly/ annual returns

3.What do you meant by PART1Enrty in MIGO,

A. what is the benefit if we choose this.

As par excise laws in india there are different registers which business have to maintain out of them RG23 A/ C (both different) are for the record keeping of material bought/ consumed in the business premises. These registers have part 1 for quantity and part 2 for value. While doing MIGO, if CIN settings has been configured the system asks for which register to update (23A is for Raw Materials and 23C is for Capital Goods)

Answers (1)

Answers (1)

Former Member
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hi nagrajan

1. Difference in TAX code between Subcontract and Regular(std Vendor)

A. Why we are not considering TAX while doing Subcon, why we are considering TAX while doing regular(Std vendor)

2.What is the use of Cenvat posting.

3.What do you meant by PART1Enrty in MIGO,

ans1. normally we use tax code with o duty for subc. vendorand for regular we use tax code with duty applicable on that amnt.

a: We are not consider tax duty because we are sending matrl against 57 f4 challan and material return a our comp. with in 180 days. as govrm. rule no duty applicable on it.

2. after cenvat posting we can use that amount for cenvat utilization. and registers part 2 is updated.

3. this mean part 1 register updated automatically for perticular matrl aftr completion of migo transaction no need of updated manually

hope you get the ans.

Vipin