Hi experts Can anybody explaine in detail about CIN process (End to End in legacy system) In domain, without SAP

how CIN process being processed..???

expalined me in 4 point of view. 1.Procurement exciseable material 2.Production exciseable material 3.Selling with Excisable material 4.Accounting of procurement,production and selling exciseable materials Jus explain me in short, example assume ABCD raw material, 1234 is Finished material , both materials are excieasble . one full cycle of Excise duty scenario.?? Hi, When you purchase you should get excise invoice from your vendor. You use this material for production and then finished goods are produced. Now when you sell this finished goods you will be again charged excise on sales value of the goods you maufactured. As a result of this you will be charged excise at the time you sell which includes input cost which again consists of excise on purchase. Thus to avoid tax on tax you can get credit of the same. I will give an example. You Bought Material A for Rs. 115. Basic Price + Excise @ 15% Rs. 100 Rs. 15 ___________ Rs. 115 ____________ You Sold Material B Which Is Manufactured Out Of Material A Now after that you used labour and its form changes. Means identity of raw material changed and it is recongnised in market as different commodity Say Material B. Then when you sell you will need to charge excise on sales value. I will give example. Basic Price Material B + Excise @ 15% Rs. 200 Rs. 30 ____________ Rs. 230 ____________ So now when you will need to pay excise department you will not need to pay Rs. 30/- as your are entitled to credit of Rs. 15 which is the excise paid by you when you purchased material A. Thus you take input credit (ie credit of excise paid at the time of purchase). Thus you will pay to excise department only Rs. 15 ( Rs. 30 excise on sale - Rs. 15 excise on purchases). For accounting of material and input excise credit etc excise department has its own format which are incorporated by SAP in CIN. As mentioned by other like RG 23 A etc.SAP has incorporated these format in CIN. In SAP when you post MIRO transaction at time of purchase or create billing at the time of sale, excise document will be geneated by SAP which will give effect to all the excise related registers and accounting entries. I hope this will clear your doubt about the procedure. Please let me know about your satisfaction on the information.

Hi,, When you are procuring an excisable material at the factory , you will take the cenvat credit on that. You will have to maintain the Registers like RG23A Part 1 & Part 2. This material which is procurred will be used in the final product which is manufactured. When the Final product is manufactured, you will have to maintain the RG1 register. The excise duty on the fiished material is applicable at the time of despatch of material. If you are going to despatch the material from the factory, you will have to reduce the stock of material from the RG1 register. If you are sending the material to the depot, then you will have to maintain the RG23D register at the Depot. Hope this will give you the basic understanding of the excise procedure. Hi Dhananjay, I saw your post and was just curious to understand this more better.I hope you will revert to it. If i am going from non excisable warehoue to excisable warehouse of automotive parts,what will be the documentation change physically as well system wise.Excise is 10% now and considering cess and edu cess it comes 10.3% precisely.What i understand is that on MRP,one need to pay 10.3% on 70% of MRP.eg.MRP of A is 100,then excise is applicable on 70% of MRP which is 70/Now on this 70/- excise of 10.3% will be applicable which comes around 7.21 rs. A) How the Final price will be calculated B) what will be the standard procedure for dispatch invoicing C) Any idea about stationary to be used during desaptch like no of copies. D) how the integration to be done E) any idea about return filing I know its so much to ask..just want to have overview..