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Former Member

Need clarification on Legal implication for creating a new plant in SAP

Dear all,

My customer is having two manufacturing plant in India.

One is DTA for domestic business and the other is EOU, 100 % Export oriented. In both plant they are manufacturing fridges.

SAP implementation gone live on last july.

Now they are starting Washing machine manufacturing inside the DTA plant for domestic business. But they want to go for a new plant to be created in SAP, they are not going to register that plant with government.

They want that plant only for reporting purpose. I want to know will it create any leagel implecation while posting excise invoice or with Register maintanence.'

Need your advice.

With Regards


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2 Answers

  • Oct 08, 2010 at 03:21 PM

    I think you were asking from SAP point of view but I would prefer to answer the practice what should be followed from manufacturer's angle.

    If you treat any place as a separate plant, the first and foremost criteria which you should look into is excise part.

    From excise point of view, you need to get concurrence from the authorities to do business with the same excise group assuming that the address is same of the existing plant.

    If address is different, then you should treat it as a separate excise group and accordingly, you need to have a separate excise group and series group and therefore, excise registers and sales tax registers will be a separate one.

    Though your question should be answered in a lengthy way, better ask the client with their range office who will be the deciding authorities.


    G. Lakshmipathi

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    Former Member
    Oct 08, 2010 at 04:48 PM

    Hi Mani,

    For reporting purposes, Did you explore using different product line for Washing machines instead of going for new plant?

    Lets wait for other experts opinion.

    Thank you


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