Domestic Returns Tax applicable

[Former Member]

Dear Guru's

We are Implementing to Indian client, The client has put a requirement as during returns the client needs only VAT/CST to be debited where as it should not disturb excise duties.

So please suggest how to go about.

Regards

Kiran Nazare

[suman_sardar2]

Hi Kiran,

I am not familiar about the business scenario,if you please share will appreciate.

Now come to your issue technically speaking this is possible.

I am sure that your are using a separate pricing procedure for return sales.

Maintain your Excise condition type as statistical.

So at the time of Credit for return billing only VAT/CST will be debited.

Thanks,

Suman

[Former Member]

Dear Suman

Thanks for your reply

we are not using any separate pricing procedure fro returns sales.

so how to go about.

Regrds

Kiran Nazare

[suman_sardar2]

Kiran,

Why not a separate pricing procedure?

Also you have not mentioned the exact business scenario.

I do not think that your client is the only one who is dealing with types of business.

So if you share then forum member will definitely reply on that.

Thanks,

Suman

[Former Member]

Dear Suman

Thanks for the information,

The scenario is when we get customer returns usually customer gets credited by debiting sales return account, tax and excise duty account(if i am wrong please correct me)

Here we are maintaining only one pricing procedure for domestic sale(both sale and returns)

next the client is requesting when there is a returns the accounts posting should be 

customer credit by  debiting sales return and taxes account.

so please guide me accordingly.

regards

Kiran Nazare

[suman_sardar2]

Kiran,

As per my understanding you can go for separate pricing procedure which is a copy of Domestic sales pricing in which you have to maintain Excise conditions as Statistical.

As you know Pricing Proc determination = Sales Area + Cust Pricing Proc + Document pricing proc

in OVKK.

Thanks,

Suman

[Former Member]

Dear Suman

Thank you very much for your valuable time.

my client is not ready for new pricing procedure, before posting this  post  we team had  suggested the same but they rejected and they are very strict on this that it should be done without creating new pricing procedure.

So kindly help me in this regard

regards

kiran nazare

[Former Member]

Hi Kiran,

As per the business Process explained by you:

Actual Invoice :

Customer need to pay 100

    sales revenue    80

    Excise duty      10

    tax                   10

In case of Return invoice:

Pay customer   100  (as you need to make full payment to customer)

    sales revenue 90

    tax                10

It means, while the invoice going out, you are posting the Excise account, whereas when it is coming back, you are not chargin to that account, because that is a loss, which we already incurred and we cannot take this back.

Is my understanding is correct?

Regards

Raju

[Former Member]

Dear Krishna

Yes you are right,

Hope you will suggest me.

regards

Kiran Nazare