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How Excise is Calculated in CIN?

Former Member
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Dear Friends,

I have a query related to Excise in CIN (Country India Version).

Is excise calculated from MM Pricing Procedure or FI Tax Procedure or do we have to maintain conditions in MM Pricing Procedure and FI Tax Procedure as well?

If we can calculate Excise from both MM Pricing Procedure and FI Tax Procedure, where are the rates maintained in both the cases and how GL account is picked?

Regards,

CS   

Accepted Solutions (0)

Answers (5)

Answers (5)

Former Member
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Dear Kishanlal,

Can you provide presentation by Mr.Narendra Konnipati (Calculation) and Mr.Sandeep Kashigaonkar (Configuration).

Regards

Subhash

Former Member
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Dear Subhash Ji,

Appropriate discussion we had above, however to understand the relationship among tools and simplicity, it could be added that;

1. Tax Configuration is done at Country Level,

2. Tax procedure is assigned to country,

3. Condition Type are created under Pricing Procedure (in SD/MM) or Tax code (in FI),

4. Condition type are assigned with Account Key

5. Appropriate GL Account is defined to Account to flow the entry in FI

Hope, I would be able to address the query.

Regards

K.L.Paliwal

Former Member
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Dear Colleagues,

Trying to add into reply the basic query again;

In SAP we have two Tax Procedures viz. TAXINJ and TAXINN applicable for India.

The calculation under tax procedure TAXINJ is formula based whereas in TAXINN is the condition based.

The calculations are performed under various modules based on following;

  1. Pricing procedures, and
  2. Tax code

Pricing procedures are the set of various conditions involved in the real business transaction whether in MM or SD. A business may frame the number of pricing procedures as per need.

The modules wise use is as under;

SD Module: Pricing Procedure under TAXINN

FI Module: Tax code under TAXINN

MM Module: Pricing Procedure and Tax code under TAXINJ

I also appreciate the presentation of by Mr.Narendra Konnipati (Calculation) and Mr.Sandeep Kashigaonkar (Configuration).

Hope this combination of information would help us.

Regards

K.L.Paliwal

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Hi Satendra,

Please find below info for TAXINN procedure.

Assign points if helpful.

Transaction Code: OBYZ

Calculation Procedures containing the necessary specifications for the calculation and posting of taxes on sales/purchases have already been defined in the standard SAP system for certain countries. Every calculation procedure groups several tax types together into a Condition Type (for example, output tax or input tax) in the calculation procedure, and determines calculation rules for it.

Check whether TAXINN procedure is available in system or not.

Control Data for tax procedure TAXINN and Excise Defaults are mentioned

You can create the Access Sequence as per your requirement usually this is a MM Consultant’s part. The use of this is mentioned in another part of this document.

Usually these are the access sequences (may differ as per the requirement);

In these you define which combinations of fields are to be taken into consideration to decide the Condition Records.

You also need to check whether all the Condition Types are there in SAP system or else you need to add missing condition type in SAP system.

 
 

Assign Country to Calculation Procedure

Transaction Code: OBBG


Assign the tax procedure TAXINN to country India

TAXINN:

TAXINN is a tax procedure which follows condition based record (not like percentage base in TAXINJ). 

Specify G/L  Accounts per Excise Transaction :

Transaction Code : NA

Path : Logistics – General > Tax on Goods Movements > India > Account Determination > Specify G/L Accounts per Excise Transaction

Please make sure that you have assigned correct GL accounts for CIN transactions as below. Here we maintain GL Accounts for Excise transactions for automatic account determination.

Define TAX Code:

Transaction code: FTXP

While defining tax code for TAXINN you just need to define TAX Type and its Description. Please note do not mention tax percentage in its description as there will not be any access to end user to change the description once the tax rate get changed. Here user need to change condition records only not the tax code in case of change in tax rate.


Here there is no need to mention Tax Percent Rates.

Condition Records:

Transaction Code: FV11

Please note this task is to be done by a MM consultant. Mention the required condition type in coming window (for instance we will maintain condition record for Basic Excise Duty.

Select Access Sequence (You can select as per your requirement)

Maintain Condition Record as below;

Similarly you need maintain the all the Condition Records which are applicable to your business process.

Hence the end user can change the condition records as and when it is required, there is no need to contact consultant to do this task as FV11 is an end user transaction.

Regards,

KSandeep

Former Member
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Hi.

when system calculate for based on condition type or tax code. what ever tax code assign to purchase order so system will be calculate tax.

FV11 here tax based on condision type here maintain the setting.

tax code level ftxp t.code here create tax code. if any gl a/c assigned in ob40 t.code based on transction key.

former_member184065
Active Contributor
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CIN Stands for Country India version which has been developed by SAP to meet the statutory

     Requirements under the Indian Law.

CIN Interfaces with SAP MM,SD,FI to meet  determine the treatment of various taxes levied by

     The Indian Government.

   

It includes the treatment of taxes like, Excise, VAT, Service tax, Customs Duty.

Excise Duty- It is a  tax on manufacture of  excisable goods. This tax is now known as the Central Value Added Tax (CENVAT).

Excisable Goods- The term 'excisable goods' means the goods which are specified by CBEC(Central board of Excise and Customs) comes out with the list of excisable goods.

Liability to Pay the excise duty- The liability to pay tax excise duty is always on the manufacturer or goods.

Types of excise duty –

Basic Excise duty-  Currently its 10% if the purchasing value.

Education Cess- Cess means tax on tax. Currently its 2 % of the basic excise duty.

Higher Education Cess- Its again a cess and its currently 1% of the basic excise duty.

Example-  If the Price of a unit of goods in rupees 100/- the following would be the treatment

Basic Price- 100

Basic Excise Duty- 10 (10% of 100)

Education Cess-   .2 (2% 10/-)

Higher education Cess - .1 (1% of 10)

Total Amount Payable-  110.3/- ( Total Tax payable to the Government – 10.3/-)

Cenvat Credit-  It means that the tax payable to the government on the Raw material and Capital

Goods can be set off  against the excise payable against the removal of finished goods.

Hope this helps

Former Member
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Hi Narendra,

Thanks for your efforts and reply.

But I want to know from SAP point of view that is the excise value calculated from MM Pricing Procedure (i.e. conditions maintained in MM Pricing) or from FI Tax Procedure (i.e. Conditions maintained in Tax Procedure).

Regards,

CS

narasimhulu_konnipati
Active Contributor
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Taxes configured in FI only with Tax procedure

OBYZ - Condition type

Tax procedure you create in FI with Condition type and Account key is the major.

Account key you assign in OB40 with GL Accounts for tax calculation

Refer to the below

http://scn.sap.com/thread/3168909

Thanks