Excise Duties: Levi on Manufacturing Goods BED (Basic Excise Duty): 12% on Net value ECS (Education Cess): 2% on BED SECS (Secondary Education Cess): 1% on BED AED (Additional Excise Duty) (Tobacco & Liquor industries) SED (Special Excise Duty) (Tobacco & Liquor industries) Sales Tax: Levi on Sales Transaction CST (Central Sales Tax): b/w two states (Delivering Plant & Ship-to- party) VAT (Value Added Tax): within the state (Delivering Plant & Ship-to- party) Service Tax: Levi on Service Transaction (12% on Net value) Ex: AMC, Repairs, Banking, Hotels, Hospitals, Software etc. ECS: 2% on Service Tax SECS: 1% on Service Tax TCS (Tax Collected on Source): Levi on Scrap Sales Transaction CIN Configuration in 2 ways: Formula based Tax procedure TAXINJ Excise duties will be determined based on Formula (Alt.Cal.type & Alt.Base.type) (before 2008) Condition based Tax procedure TAXINN Excise duties will be determined based on Condition technique (after 2008) Business Process in CIN:
Excise Duties: Levi on Manufacturing GoodsBED (Basic Excise
Duty): 12% on Net valueECS (Education Cess): 2% on BEDSECS
(Secondary Education Cess): 1% on BEDAED (Additional Excise Duty)
(Tobacco & Liquor industries) SED (Special Excise Duty)
(Tobacco & Liquor industries)Sales Tax: Levi on Sales
TransactionCST (Central Sales Tax): b/w two states (Delivering
Plant & Ship-to-party)VAT (Value Added Tax): within the state
(Delivering Plant & Ship-to-party) Service Tax: Levi on Service
Transaction (12% on Net value)Ex: AMC, Repairs, Banking, Hotels,
Hospitals, Software etc.ECS: 2% on Service TaxSECS: 1% on Service
TaxTCS (Tax Collected on Source): Levi on Scrap Sales Transaction
CIN Configuration in 2 ways:Formula based Tax procedure
TAXINJExcise duties will be determined based on Formula
(Alt.Cal.type & Alt.Base.type) (before 2008)Condition based Tax
procedure TAXINNExcise duties will be determined based on Condition
technique (after 2008)Business Process in CIN:1. Factory Sale:
Selling the goods directly from Manufacturing
PlantOrderDeliveryInvoice (Excise + Sales Tax)Excise Invoice (T.
code J1IIN)2. Depot Sale: A) Plant to Depot (STO)B) Depot to
CustomerC) ExportsA) STO (Plant to Depot)Purchase OrderDelivery w.
r. t Purchase OrderPro forma Invoice (JEX) (Pro forma Tax Invoice)
Excise InvoiceWe do MIGO when the Goods reach to Depot and then
J1IG (Capturing Excise at Depot)B) Depot to CustomerOrderDelivery
(J1IJ Distributing Excise to Customer) InvoiceIn Invoice the Excise
duties will be copied from J1IJ to InvoiceHere, we will get both
Excise + Sales taxC) Exports: Export customers (outside country)
are not liable for ExciseExports are 3 types1. BOND2. LOU (Letter
of Undertaking)3. Rebate/No Bond1. BOND: an agreement B/w Company
and Excise department for doing export without paying excise
duties. OrderDeliveryInvoiceExcise Invoice (select as Bond) ARE1
Document (T. code J1IA101)2. LOU: it is a permission to do exports
without paying excise duty up to RG23 (excise duty which we already
paid to customs) balances.OrderDeliveryInvoiceExcise Invoice
(select as LOU)ARE1 Document3. Rebate/No Bond: while doing exports
we have to pay the excise duties to excise department, and after 6
months we can claim it back.OrderDeliveryInvoiceExcise Invoice
(select No Bond)ARE1 DocumentDeemed Exports: SEZ customer (Indirect
export)SEZ Special Economic ZoneEOU Export Oriented UnitSelling to
the customers who are located in India and who will do 100%
Export.OrderDeliveryInvoiceExcise Invoice (select Deemed)ARE3
Document (T. code J1IA301)
Registers in CIN: 1. RG1RG1 registers will help to track what is
coming in and what is going out.Receives (coming in) MMIssues
(going out) SD2. RG23A (taken care by MM) is for raw materialsPart1
QuantitiesPart2 Value3. RG23C (taken care by FI) is for Capital
goods (assets)Part1 QuantitiesPart2 Value4. RG23D is for Depot
registersJ1IG Capturing Excise Duties (MM)J1IJ Distributing Excise
Duties to Customers (SD)CENVAT Utilization:
