CIN

Pabbati Chinna Obulesu

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Agenda:

Introduction
Taxes in India
Tax procedures
Excise duty
Purchasing cycle

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 Country India Version

Purpose:

This Country version is designed for use by businesses with operations in India. It
comprises functions designed specifically for India, a localization Implementation
Guide( IMG), and a country template to help you customize system according to local
requirements.
This section explains how the country-specific functions work and what customizing
settings are made by the country template.
Features:
Most of the country-specific functions for India relate to Financials and Logistics, and
center around taxes,
Excise duty and the Central value-added tax system ( CENVAT)
Tax deduction at source ( TDS)
Sales Tax

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CENVAT:
In India, Excise duty is a tax on the manufacture of goods that is levied
when goods leave the place of manufacturers can set off the duty paid on
input materials against their output duty, a procedure known as Central
value added tax ( CENVAT).

Determination of Excise Duty:

Maintain the following data namely
1.Material master data
2. Vendor master data
3. Customer data
4.Plant master data
5. Excise tax rate

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 Taxes in India

Excise Duty
Educational Cess
Service Tax
Educationcess on service tax
Countravailing duty tax ( CVD)
IT duty
Customer duty
CST
LST
VAT

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 Tax Procedures

In India, Tax procedure are two types namely

1.TAXINJ - used with maintenance of Tax codes
2.TAX INN used with condition records

FV11- T. code maintaining condition records for condition types of tax

procedure

Chart of Accounts: CAIN

Access sequence: MWST

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 e.g: Excise duty 16% & tax is 4% &
Excise duty is 12% & tax is same 4%,

in this situation by using TAXINJ you have to create two codes, but by using
TAXINN we will create only one tax for 4% & capture 16% excise duty for
material in CIN using condition in MEK1. so that tax codes are reduced else
for end user it will be very difficult to find tax codes for this excise matter,
there may be more than 150 tax codes in TAXINJ will be reduced to less
than 50 by using TAXINN

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 Purchasing Cycle

1. Indigenous
- creation of PO ( select tax code in PO)

2. a) Capturing of Excise Invoice ( T.code:J1IEX_C)

b) Goods Receipt

c) Posting of Excise Invoice ( T. code: J1IEX_P)

3. Vendor Invoice

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 Excise Registers

1.Register RG 23 ( A and C), Part I:

-record of purchase of materials that you have paid excise duty on.
2.Register RG 23 ( A and C), Part II:
-how much excise duty that you have credited and debited to your CENVAT a/c.
RG 23A- reserved for raw materials
RG 23C- for capital goods
3.Personal Ledger Account ( PLA):
- This is the bank a/c from which you transfer any money owing to the excise
authorities.
4. Register RG 23 D :
- It shows all of the depots goods receipts
5.Register RG 1:
- production information of finished goods on which excise is paid
6.Register RT-12:
- monthly report of CENVAT and PLA

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T.Code: J1ID

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Excise Group & series group:

For each excise group 3 series groups required, namely

- Local purchase & imports
- Exports
- S/C operations

- For CIN, accounting determination T. Code: OB40

- Creation of Tax code: FTXP

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 External Procurement ( Imports)

1. Create the PO and send it to vendor

2. The Vendor ships the goods to you
- when the goods arrive in India, they go through customs. The customs office
issue a bill of entry for the goods, which is in effect an invoice for CVD on the
goods.
3. Enter the GR and Capture the Excise Invoice
- Stores person enters the GR ( it creates an entry for the GR in Part 1 of the
Excise register)
4. The excise supervisor posts excise invoice
5. Enter invoice for the materials

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 Number Ranges

At Series group
You can maintain the number ranges for all
CIN Number range objects using this 1. j_1iexcloc
transaction
Activities
2. j_1iexcexp
Please maintain the number ranges for the 3. j_1idepinv
following objects The no nr has to be '01' 4. j_1i57Fc ( 57F Challans )
for all
1. j_1iintnum
At an Excise group
1. j_1irg23a1
2. j_1irg23a2
3. j_1iRG1
4. j_1irg23c1
5. j_1irg23c2
6. j_1ipla2
7. j_1iintpr2
8. j_1irg23d
9. j_1irg1_t ( material level)
10. j_1iconpla ( if Consolidated PLA is used

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 Activate CIN for specific years Assign country to calculation
procedure

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