Beruflich Dokumente
Kultur Dokumente
Overview
Presented By
K V Ramesh Babu
1
Contents
India Localization
3. Utilization
2
India Localization Requirements -
Overview
CENVAT (Excise)
Service Tax
Cenvat Credit
3
India Localization Requirements -
Overview
Service Tax
Cenvat Credit
4
Central Value Added Tax (Excise)
What is Cenvat?
Duty shall be paid when the goods are removed from the
place of production or place of storage
7
Central Value Added Tax
(Excise)
Duty Calculation
Duty based on tariff value – The Govt. may fix tariff value from
time to time. The duty will be calculated as percentage of tariff
value fixed by the Govt. and not on assessable value
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Central Value Added Tax (Excise)
Pays Excise Duty Pays Excise Duty for all Pays Excise component to
outbound goods movement the Vendor
Claims Cenvat
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Central Value Added Tax
(Excise)
CENVAT PAYMENT
Duty to be paid by 5 th
of the following month
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Central Value Added Tax
(Excise)
Excise Registers
Excise Registers
(RG23A & C Part I & Part II,RG1, PLA, RG23D)
Bond Registers
License Registers
12
India Localization
Requirements - Overview
CENVAT (Excise)
Service Tax
Cenvat Credit
13
VAT / Central Sales Tax
Any sale would be charged to either VAT or CST but only to one
of them
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CENVAT vs. VAT
Cenvat VAT
Single point tax - paid at the first point of goods movement Multi Point Tax – payable at each stage of value chain
General CENVAT rate @ 16% with exceptions General VAT rate @ 4% or 12.5% with exceptions
Centrally administered –Cenvat Chain cannot be broken on State administered – Chain broken on interstate transactions
interstate boundaries
Cenvat credit can be availed on Services Cenvat credit cannot be availed on Services
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India Localization Requirements -
Overview
CENVAT (Excise)
Service Tax
Cenvat Credit
17
Service Tax
Tax to be paid by 5 th
of the next month
18
Service Tax
Export of Service
20
Service Tax
Import of Service
21
Service Tax
Credit can be taken only when full payment has been made for the
service
Credit may be taken for service tax and also for education Cess ,
Secondary and Higher Education Cess paid
Reporting
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India Localization Requirements -
Overview
CENVAT (Excise)
Service Tax
Cenvat Credit
24
CENVAT Credit
Cenvat (Excise)
Education Cess
Countervailing Duty
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CENVAT Credit
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CENVAT Credit
Service tax and education cess paid on any input service used
in relation to manufacturing process
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CENVAT Credit
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CENVAT Credit
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CENVAT Credit
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CENVAT Credit
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CENVAT Availment &
Utilization Overview
SALES EXCISE
ON-LINE TRANSACTIONS INVOICE PROCESS
GOODS
RECEIPT
CENVAT on hold
Debit CENVAT for Cap Goods
on-hold A/c DESPATCH
Credit ED Payable A/c
VENDOR EXCISE
INVOICE PROCESS
Debit CENVAT A/c Excise Duty
CENVAT Account
Payable A/C
Credit CENVAT A/c
DEPOSIT SELECT
FUNDS REGISTER Excise duty
IN PLA Utilization
ACCOUNT PLA A/C Transaction
Debit Credit PLA A/c
PLA Account
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Contents
India Localization
3. Utilization
34
Logistics Process Overview
Subcontractor
Plant X Plant Y
Domestic Customer
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Excise Procurement
Scenarios
Subcontracting Process
Imports Purchase
36
Typical Procurement Cycle
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Excise Procurement Scenarios
Subcontracting Process
Imports Purchase
38
Domestic Procurement of
Raw Materials
Vendor liable to pay GR at Factory Gate Excise Invoice Post Liability to Vendor
excise to Govt.
Excise Invoice CENVAT – Part II - Price
Vendor Excise Invoice Capture Register entry - Excise
accompanies Goods - Other Taxes
Excise Invoice Post - Other Costs
(Optional)
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Domestic Procurement of
Raw Materials
Accounting Entries
GR Posting
Inventory Account Dr.
GR/IR Clearing Account Cr.
Excise Invoice Posting
Excise Duty A/C Dr.
CENVAT Clearing Account Cr.
CENVAT Onhold A/C ( For Capital Goods) Dr.
Vendor Invoice Posting
40
Procurement: Cancellation of
CENVAT Credit
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Procurement: Vendor Returns
42
Procurement: Additional Adjustments
43
Procurement: Adjustments & Reversals
Highlights
C E N V A T A d ju s tm e n t
S c rap
N o n -p r o d u c tio n u s e
A d d i t io n a l E x c is e P a id b y V e n d o r
D e p o s it in to P L A th r o u g h T R 6
C a n c e l E x c is e In v o ic e
Flexibility for 100% Compliance
W ith R e fe r e n c e to E x te r n a l D o c u m e n t
Subcontracting Process
Imports Purchase
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Subcontracting Process
Input
Challan
Sub contractor
FACTORY
Output
46
Subcontracting Process
47
Subcontracting Process
48
Subcontracting Process
Reverse Credit
Run Listing Get Material Qty not
availed on Input
Transaction returned on Challan
Material
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Subcontracting Process
50
Subcontracting Process
51
Subcontracting Process
52
Excise Procurement
Scenarios
Subcontracting Process
Imports Purchase
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Stock Transport Process
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Stock Transport Process
FEATURES
Applicable for Plants in different registration Ids
Assessable value in excise master used for duty computation
EI capture in receiving plant w.r.t
- STO
- GR
Excise Values copied from supplying plant invoice during EI capture
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Excise Procurement
Scenarios
Subcontracting Process
Imports Purchase
56
Imports Purchase
CENVAT – Part 2
Register
57
Imports Purchase
Accounting Entries
Commercial Invoice Posting
Customs Clearing Dr.
Customs Payable (Commissioner) Cr.
GR Posting
Inventory Account Dr.
GR/IR Clearing Account Cr.
Excise Invoice Posting
Excise Duty A/C Dr.
Customs Clearing Account Cr.
Vendor Invoice Posting
GR/IR Clearing A/C Dr.
58
Excise Procurement
Scenarios
Subcontracting Process
Imports Purchase
59
Service Procurement
60
Service Procurement
61
Service Procurement
Accounting Entries
Accounting Entry after Vendor Invoice Verification
Accounts Payable (Vendor) Cr.
GR/IR Clearing Account Dr.
Service Tax Receivable Account Dr.
Education Cess on Service Tax Receivable Account Dr.
Sec.Education Cess on Service Tax Receivable Account Dr.
FI-JV after Vendor Payment to avail Service Tax Credit
Service Tax Availed Account Dr.
Education Cess on Service Tax Availed Account Dr.
Sec.Education Cess on Service Tax Availed Account Dr.
62
Excise Sales Overview
Removal of Goods
63
Excise Sales Scenarios
Transfers to Depot
Export Sale
64
Excise Sales Scenarios
Transfers to Depot
Export Sale
65
Sale from Factory
Supplying Plant
Excise Invoice
Price: 1000
Qty : 10 PC Dispatch
Duty 16%
+ 160
Debit:
Rs. 160
Excise
Duty
Payable
A/C
Fortnightly utilization
CENVAT/Part II Register 66
PLA Register
Sale from Factory
Delivery
Goods Issue
ED Payable
Utilization
Excise Invoice
67
Sale from Factory
Printing
Proforma Excise Commercial
Sales Order Delivery Excise
Invoice Invoice Invoice
Invoice
68
Sale from Factory
Printing
Commercial Excise
Sales Order Delivery Excise
Invoice Invoice
Invoice
69
Sale from Factory
Excise
Delivery Billing Invoice
Sales Order Bill to: 2300
Sold to : 2300 Ship to: 2300 Sold to : 2300
Material: 400 Material: 400 Material: 400
Material: 400 Quantity: 5
Quantity: 5 Quantity: 5 Quantity: 5
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Sale from Factory
71
Sale from Factory
documents
- Deficit, if any
72
Sale from Factory
Batch Utilization
73
Excise Sales Scenarios
Transfers to Depot
Export Sale
74
Transfers to Depot
Stock Printing
Replishment Proforma Excise
Transfer Excise
Delivery Invoice Invoice
Order Invoice
75
Transfers to Depot
At the Factory gate, Excise is paid on the declared value of the
goods to be sold at depot.
Depot should charge from the customer the same Excise duty
from that was paid at factory/source.
77
Transfers to Depot
78
Excise Sales Scenarios
Transfers to Depot
Export Sale
79
Sale from Depot
80
Sale from Depot
Depot Sales
82
RG23D Register
Text
Receipt update the quantity and the value in RG23D
Material The Text
reference / mother invoice details in terms of batches etc captured
Receipt in – Text
Depot
Reference to the mother invoice is made
Movement /
Update goods issue quantity
sale from
depot
Excise amount cannot differ from that paid at the first point of goods
movement
83
Depot Operations
84
Excise Sales Scenarios
Transfers to Depot
Export Sale
85
Export Sale
If Exported
under bond
86
Export Sale
87
Export Sale
No amount utilization
88
Contents
India Localization
3. Utilization
89
Utilization
Monthly Utilization
Features include
Display of pending invoices
Option for Posting date
Posting to a Business area
Selection based on a range of dates
Optionally, Selection based on a range of invoices
Utilization strategy based on customization settings
90
Utilization
91
TR6 Challan Posting with PLA Register
Updation
House Bank Own
92
Utilization of CENVAT
Input Output
Debit Balance Credit Balance
PLA Balance
Is the Balance
Sufficient
DEPOSIT SELECT
FUNDS REGISTER Excise duty
IN PLA Utilization
ACCOUNT PLA A/C Transaction
Debit Credit PLA A/c
PLA Account
94
Contents
India Localization
3. Utilization
95
EWT: TDS Overview
Vendor Vendor
Income tax office
Pay Tax to
Government
Bank
96
EWT: TDS (Tax Deducted at Source)
Services
Mumbai plant
Invoice
Vendor Certificate
Vendor
Payment
ABC Ltd
Advance
Payment/Challan
Quarterly
Returns
Income Tax 98
BANK Office
EWT: Vendor Transactions
Down
Payment
Reverse Credit
Invoice
Invoice Memo
Clear DP
Cash Journal
Postings
Challan
TDS JV
Update
Logistics
Invoice Bank
Challan
Quarterly
99
Returns
EWT: Customer Interest TDS
Mumbai plant
Advance
Customer
Certificate
Interest Payment
ABC Ltd
Payment/Challan
Quarterly Returns
Income Tax
BANK
Office
100
EWT: Provisions and Adjustments
TDS on Challan
Provisions Update
Posting On payment
Where required due date
TDS
Certificate
Printing,
Reprinting and
Cancellation
Posting on appropriate
Invoice, Credit
due dates
Memo, Down
Payment, etc
Tax
Adjustment
Quarterly
JV
Where required Return
102
Questions??
Thank you!
103