Excise India/User Documentation

Contents 1 Introduction 1.1 Functionality for excise include 2 Installation 2.1 Dataset Application 3 Configuration 4 Content of the module 4.1 ER1 Report 4.1.1 Configuration 4.1.2 Usability 4.2 ER1 Service Tax 4.2.1 Configuration 4.3 RG23 A PART1 4.4 RG23 C PART 1 4.5 RG23 A PART 11 4.6 RG23 C PART 11 4.7 PLA Register Report 4.8 Excise Setup 4.9 Excise Credit Adjustment

Introduction

Excise Duty refers to an indirect type of taxation imposed on the manufacture, sale or use of certain types of goods and products. It is an ad valorem tax (VAT) - credit is provided for tax paid on purchase and is managed by Central Board of Excise and Customs.

Functionality for excise include

• Capture of excise related master information that includes definition of Excise Categories, capturing of excise specific information for organization, product and partners. Details provided in Master Data Module Manual
• COA with excise related accounts for tracking balances - sample structure in the India Localization - Chart of Accounts Module.
• Generation of Excise taxes as part of sales and purchase txns - sample structure provided in the India Localization - Taxes Module.
• Making payments for Excise into PLA ( Personal ledger account ) - no specific Localization functionality.
• Adjusting credits against excise due - in this module
• Generation of excise reports and regulatory filing - reports in this module.

Functionality exclusive to excise are provided in this module - details are provided in User manual .

Installation

This module is installed once the Professional Pack is installed.

Dataset Application

This module contains a set of "Excise Categories" and their corresponding Subheading which populates the "Excise Category" window.

This reference data can be applied either at Client level or at Organization level as explained here: India Excise.

Configuration

Content of the module

Once installed this module creates a new folder named "Excise" under India Localization menu.

To check the contents of the Excise sub-menu go to Financial Management -> India Localization ->Excise.

In India, Excise and Service Tax are filled under the same tax department. For additional information, please visit this url: http://www.cbec.gov.in/.

This module provides the "ER1 Report" required by the Government of India.
Same way, the user also needs to fill in the "Annexure 10" along with the ER1 Report, therefore "ER1 Central Excise" and "ER1 Service Tax" reports are also provide to allow "Annexure 10" to be filled in.

ER1 Report

Configuration

Production Setup

Go to Application -> Production Management -> Setup and create following

• Section
  

• Work Center
  

• Process Plan and
  

• Activity

Product:

To create a product login as an Administrator of your client. Go to Master Data Management->Product or just type "Product" in the Quick Launch window.

Product should be created with following features as shown below:

• Tax Rate should be related to Excise.
• Select Excise Category and corresponding Chapter Subheading.
• Production check-box should be checked.
• Select a Process Plan for the product.

Production Transactions

Setup the following

• Create a Work Requirement
• Create a Work Effort for the Requirement.

of what??????

Usability

ER1 Report includes....., therefore the source of information is ........which do include.....

This report can be launched by following below detailed steps:

1. Login as the Administrator of your client.
2. Go to Financial Management -> India Localization -> Excise -> ER1 Report or just type "ER1 Report" in the Quick Launch window.
3. The report is displayed as below.

The details of the report are:

• CETSH No: Chapter Sub-Heading Number
• Description of Goods:Chapter Heading
• Unit of Measure : Unit
• Opening Balance: Opening Balance for the Excise
• Quantity Manufactured: Quantity Manufactured in the Work Requirement
• Quantity Cleared: Quantity Sold
• Closing Balance: Closing Balance for the Excise
• Assessable Value: Value of the manufactured goods.
• Type of Clearance: As of now all the Clearance are Home Clearance.

ER1 Service Tax

This report provides information to fill in the details in Annexure 10.
Government of India needs to know the Total Service Tax to be split into Service Tax, Education Cess and Secondary and Higher Education Cess.

Configuration

• Apply Service Tax data set, as explained here: India Excise.
• Create a "Service" product(s) (Product type = Service) with a Service Tax Code as

RG23 A PART1

It is a Stock Register for Raw materials.

Go to Financial Management -> India Localization -> Excise -> RG23 A PART1 or just type "RG23 A PART1" in the Quick Launch window.

• Select the Organization for which the report has to be generated.
• Select the product for which the report has to be generated or it will generate the report for all the products.
• Select the time frame (From Date & To Date).
• Select the output type.There are two options available ie., Excel and PDF.

• Date : Movement Date
• Opening Stock : It is the stock available at the beginning of the period.
• Description of the input received : Name of the product received from vendor.
• Qty Received : Quantity received from vendor on that particular transaction.
• Supplier Inv. No & Date : Vendor Invoice number and invoice date.
• Name and add of the Manufacturer / importer : Vendor name and details.
• Assessee code : Assessee code.
• Range/ division : Range/ division.
• Issued for manufacturing the final product  : It is the Quantity sent from the stock for manufacturing the final product.

Issued for clearance as such : on payment of duty

• Inv.no/date : It is the document number.
• Qty : It is the Quantity returned to the vendor or the Quantity of goods shipped to the customer.
• Balance Qty in Stock : Stock available after each transaction.

RG23 C PART 1

It is a Stock Register for Capital Goods.

Go to Financial Management -> India Localization -> Excise -> RG23 C PART1 or just type "RG23 C PART1" in the Quick Launch window.

• Select the Organization for which the report has to be generated.
• Select the product for which the report has to be generated or it will generate the report for all the products.
• Select the time frame (From Date & To Date).
• Select the output type.There are two options available ie., Excel and PDF.

• Date : Movement Date
• Opening Stock : It is the stock available at the beginning of the period.
• Description of the input received : Name of the product received from vendor.
• Qty Received : Quantity received from vendor on that particular transaction.
• Supplier Inv. No & Date : Vendor Invoice number and invoice date.
• Name and add of the Manufacturer / importer : Vendor name and details.
• Assessee code : Assessee code.
• Range/ division : Range/ division.
• Issued for manufacturing the final product  : It is the Quantity sent from the stock for manufacturing the final product.

Issued for clearance as such : on payment of duty

• Inv.no/date : It is the document number.
• Qty : It is the Quantity returned to the vendor or the Quantity of goods shipped to the customer.
• Balance Qty in Stock : Stock available after each transaction.

RG23 A PART 11

RG23 A Part II is the register for Cenvat Credit

• Select the Organization for which the report has to be generated.
• Select the time frame (From Date & To Date).
• Select the output type.There are two options available ie., Excel and PDF.

• Date : Movement Date
• OPENING BALANCE OF DUTY IN CREDIT : Credit Amount available at the beginning of the period.
• B.E.D : Excise Duty credit available at the beginning of the period.
• Edu. Cess : Education Cess credit available at the beginning of the period.
• HSC : Secondary education and higher education cess credit available at the beginning of the period.
• A.R.1/Invoice/other approved document/ bill of :
• ECC No of the supplier : The ECC number is a registration number, issued to all the Central Excise Assessees.
• Name & Address of the supplier : Name and address of the vendor
• Folio / Entry no. in Part I :

FRESH CREDIT ALLOWED (7) AMOUNT OF DUTY CREDITED

• B.E.D : Excise Duty credited on each transaction.
• Additional Duty of Customs/Customs equivalent to BED :
• Edu. Cess : Education Cess credited on each transaction.
• HSC : Secondary education and higher education cess credited on each transaction

DEBIT ( 9 To 11 )

• A.R.1/Invoice/ other approved document/Bill of Entry :
• Central Excise Tariff head & Subheading :
• ECC No.of the Buyer : The ECC number is a registration number, issued to all the Central Excise Assessees.
• B.E.D : Excise Duty debited on each transaction
• Addl duty equivalent to to BED :
• Edu. Cess : Education Cess debited on each transaction.
• HSC : Secondary education and higher education cess debited on each transaction

BALANCE OF CREDIT

• B.E.D : Excise Duty Credit available after each transaction.
• Additonal Duty of Customs/Customs equivalent to BED :
• Edu. Cess : Education Cess available after each transaction.
• HSC : HSC available after each transaction.

RG23 C PART 11

RG23 C Part-II is register of cenvat credit on capital goods.

Go to Financial Management -> India Localization -> Excise -> RG23 C PART 11 or just type "RG23 C PART 11" in the Quick Launch window.

• Select the Organization for which the report has to be generated.
• Select the time frame (From Date & To Date).
• Select the output type.There are two options available ie., Excel and PDF.

• Date : Movement Date
• OPENING BALANCE OF DUTY IN CREDIT : Credit Amount available at the beginning of the period.
• B.E.D : Excise Duty credit available at the beginning of the period.
• Edu. Cess : Education Cess credit available at the beginning of the period.
• HSC : Secondary education and higher education cess credit available at the beginning of the period.
• A.R.1/Invoice/other approved document/ bill of :
• ECC No of the supplier : The ECC number is a registration number, issued to all the Central Excise Assessees.
• Name & Address of the supplier : Name and address of the vendor
• Folio / Entry no. in Part I :

FRESH CREDIT ALLOWED (7) AMOUNT OF DUTY CREDITED

• B.E.D : Excise Duty credited on each transaction.
• Additional Duty of Customs/Customs equivalent to BED :
• Edu. Cess : Education Cess credited on each transaction.
• HSC : Secondary education and higher education cess credited on each transaction

DEBIT ( 9 To 11 )

• A.R.1/Invoice/ other approved document/Bill of Entry :
• Central Excise Tariff head & Subheading :
• ECC No.of the Buyer : The ECC number is a registration number, issued to all the Central Excise Assessees.
• B.E.D : Excise Duty debited on each transaction
• Addl duty equivalent to to BED :
• Edu. Cess : Education Cess debited on each transaction.
• HSC : Secondary education and higher education cess debited on each transaction

BALANCE OF CREDIT

• B.E.D : Excise Duty Credit available after each transaction.
• Additonal Duty of Customs/Customs equivalent to BED :
• Edu. Cess : Education Cess available after each transaction.
• HSC : HSC available after each transaction.

PLA Register Report

Go to Financial Management -> India Localization -> Excise -> PLA Register Report or just type "PLA Register Report" in the Quick Launch window.

• Select the Organization for which the report has to be generated.
• Select the time frame (From Date & To Date).
• Select the output type.There are two options available ie., Excel and PDF.

• Date : Movement Date
• OPENING BALANCE OF DUTY IN CREDIT : Credit Amount available at the beginning of the period.
• B.E.D : Excise Duty credit available at the beginning of the period.
• CESS 2% : Education Cess credit available at the beginning of the period.
• HSC 1% : Secondary education and higher education cess credit available at the beginning of the period.

AMOUNT OF FRESH CREDIT ALLOWED

• B.E.D 12% : Excise Duty credited on each transaction.
• CESS 2% : Education Cess credited on each transaction.
• HSC 1% : Secondary education and higher education cess credited on each transaction.

Total credit available

• B.E.D : It is the sum of Excise Duty credit available at the beginning of the period

and Excise Duty credited on each transaction.

• CESS 2% : It is the sum of Education Cess credit available at the beginning of the period and Education Cess credited on each transaction.
• HSC 1% : It is the sum of Secondary education and higher education cess credit available at the beginning of the period and Secondary education and higher education cess credited on each transaction.

DEBIT

• ECC No.of the Buyer : The ECC number is a registration number, issued to all the Central Excise Assessees.
• B.E.D : Excise Duty debited on each transaction
• CESS 2% : Education Cess debited on each transaction.
• HSC 1% : Secondary education and higher education cess debited on each transaction

Balance of Credit Available

• B.E.D : Excise Duty Credit available after each transaction.
• Edu. Cess : Education Cess available after each transaction.
• HSC : HSC available after each transaction.

Excise Setup

In Excise setup, the input tax accounts and output tax accounts will be configured. Only one excise setup can be configured of each Excise Credit Type for each Organization.

Go to Financial Management -> India Localization -> Excise -> Excise Setup or just type "Excise Setup" in the Quick Launch window.

• Organization :
• Excise credit type : There are four types of excise credits.
• General Ledger : Appropriate general ledger should be chosen.
• Input Tax : It is an account where the basic excise duty credit is maintained.
• Input Cess : It is an account where the education cess credit is maintained.
• Input HES : It is an account where the HES cess credit is maintained.
• Output Tax : It is an account where the basic excise duty debit is maintained.
• Output Cess : It is an account where the education cess debit is maintained.
• Output HES : It is an account where the HES cess debit is maintained.

Excise Credit Adjustment

Go to Financial Management -> India Localization -> Excise -> Excise Credit Adjustment or just type "Excise Credit Adjustment" in the Quick Launch window.

• Organization : Organization must be chosen.
• Period : Period must be chosen.
• Excise Credit Type : One Excise Credit Type must be chosen. For that excise type balance available basic tax, balance available education cess and balance available HE cess will be calculated and it will be shown in the status bar. On Change of excise credit type the available balances of basic tax, education cess and HE cess will be recalculated
• Select Invoices : On Click of 'Select Invoices’ button the sales invoices which are completed and whose invoice date lies in that selected period will be appeared in the popup window. The sum of basic tax of all the selected invoices should be less than balance available. The selected invoices will be displayed in 'Selected invoices' tab.
• Process : On click of ‘Process’ button the record will be processed and G/L journal will be created for that record.