1990273 - How To Handle Basic Excise Duty Under First Stage Dealer Scenaio

How you handle Basic Excise Duty calculation when you buying material from the First Stage Dealer. Under First Stage Dealer Assessable Value for the Materials will be different from the Materials Cost. As per BED (Basic Excise Duty) system should calculate BED on the Assessable Value of the Materials instead of the Inventory Cost.

For Example you bought Material from First Stage Dealer where Cost of Material is Rs. 10,000/- but the Assessable Value for the Material is Rs. 9000/-. As per the Central Excise Rule BED should calculate on the Assessable Value i.e. Rs. 9000/- not on the Material Cost. But in Supplier Invoice UI there is no option to put the Assessable value amount.

For Example BED (Basic Excise Duty) is 10%, Assessable Cost of the Material is Rs. 9000/- whereas Material Cost is Rs. 10000. As per the BED rule BED should calculate as 10% of Rs. 9,000 = Rs. 900 not on Rs. 10,000/-. Since there is no option to put Assessable Value in the Supplier Invoice and as per the BED rule BED Tax Code should take Assessable Value as Tax Base Amount. Hence we have the following workaround:

1. Go to the Supplier Invoice work center. 
2. Select View Supplier Invoice Without Purchase Order under the Common Tasks.
3. Click on View All button.
4. In the General Tab, Items tab fill all the Require details in the supplier invoice like Material ID, Material Cost as Rs. 10,000/-, select your desired BED Tax Code etc.
5. Finally come to the General tab click on Taxes sub tab, click on Tax Details.
6. Here you can find Tax Amount field is editable, you can manually put the Tax Amount as Rs. 900.

Note: You may refer to the attached screenshot for your better understanding.

KBA , SRD-FIN-GL , General Ledger , How To