Académique Documents
Professionnel Documents
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6 June 2018
AGENDA
• OBJECTIVE
• GLOSSARY
• BACKGROUND – CIN
• INTERFACE BETWEEN SAP AND CIN
• INDIAN LOCALISATION COVERAGE
• PROCESSES IN SAP WITH CIN
PROCUREMENT
SALES
FINANCE
REPORTS
6 June 2018
OBJECTIVE
6 June 2018
GLOSSARY
CIN - COUNTRY VERSION INDIA
INPUT TAX -Tax that is charged by the vendor.
A claim for refund of the deductible portion of input tax can be
submitted to the tax authorities
OUTPUT TAX -Tax levied on customers at all levels of
production and trade.
Output tax represents a tax liability.
SERVICE TAX - Tax levied on the customer on services
specified by the Government.
DEPOT - Depot is a plant where the material is stored and sold.
There is no manufacturing activity at the depot. The depots
when registered with the excise authorities can pass on the
Modvat / cenvat benefits to the customer.
6 June 2018
GLOSSARY
EXCISE DUTY (BED) - A quantity-based tax which must be paid
when a dutiable material is moved from a duty-free (bonded)
location to a duty-paid (unbonded) location or the customer. Also
known as excise tax. The excise duty is based on the quantity /
Value of material moved.
AED – Additional Excise duty is a duty which is calculated over and
above the Excise Duty payable on the material.
SED – Special Excise Duty is an additional duty levied on certain
materials depending on the characteristics of the material. The
statute specifies these materials.
CVD – Countervailing duty is a levy charged on the imports of
materials in lieu of excise duty.
CENVAT – Central Value Added Tax. The tax is levied on the
difference between the output and the input value. This is also
referred as MODVAT.
6 June 2018
GLOSSARY
CESS – Cess is a tax imposed for a specific purpose under different
acts with reference to certain goods. Cess is levied at the time of
removal of goods from the factory.
OCTROI – A levy payable on the material to the local authorities.
ECS – Education cess. The tax levied on the total excise duty.
NCCD – National calamity Contingent Duty. This tax is a special
purpose tax levied for prescribed / scheduled product announced by
the Finance ministry of India. This tax is cenvatable.
Purchase Tax – This is a tax levied by some states when the
manufacturer received a material from the out side state has to pay
the purchase tax.
Service Tax – The service provider who has the registration with the
Central Excise can collect the tax for the service provided. This is
also cenvatable and it can be utilized for payment excise duty or
payment of service tax.
6 June 2018
GLOSSARY
VAT – Government of India introduce the Value Added Tax from
April 2005. As the first stage, it is removing various sales tax
slabs. It is the modified version of Local sales tax and it is
cenvatable.
ASSESSABLE VALUE - Denotes the value of goods that you
have manufactured in-house at the price as assessed by an
authorized auditor.
SETOFF – A certain percentage of input tax which is refunded by
the government to the manufacturer. This refund does not form
part of material cost
CHAPTER ID –All materials that are required for manufacturing
and subsequently those which are manufactured, are classified
under the Central Excise Law into chapters. These chapters are
further subdivided into headings and subheadings, which
together form the chapter ID. Chapter ID 721618.10 is an
example.
6 June 2018
GLOSSARY
INTERSTATE TRANSACTIONS - A transaction where the goods /
material are traded between two different states.
CONCESSIONAL TAX FORMS – The Government announces tax
concessions in excise and taxes on sales and purchase. This can
be availed by submitting the forms prescribed by the Government.
E.g ‘C’ form , ARE-1, ARE-3 , CT1, CT2
TDS - Tax deducted at source ( Withholding tax) is a form of
indirect taxation deducted at the beginning of the payment flow.
Generally, an amount is withheld and paid over or reported to the
tax authorities on behalf of (as opposed to by) the person subject
to tax, the exception being self-withholding tax.
If a withholding tax exemption is available, withholding tax is not
withheld.
6 June 2018
GLOSSARY
REGISTERS – The registers are the books prescribed having
specific format under the statute e.g
RG23A,RG23C,RG23D,RG1 and PLA.
RETURNS – The prescribed forms having a specified format
under the statute e.g.ER-1, 57AE,ANNUAL RETURN FOR
TDS, EFILING
6 June 2018
BACKGROUND
6 June 2018
CIN INTERFACE WITH SAP
FI FI
SD
SD ZIND CIN
SAP MM
MM HR
HR
FI - INTERFACE
COMPONENT
INSTALL COMPONENT
ACTIVATE COMPONENT
ACTIVATE PROCESSES
OPEN FI - INTERFACE
6 June 2018
CIN INTERFACE WITH SAP
6 June 2018
INDIAN LOCALISATION COVERAGE
COVERS THE FOLLOWING
CENTRAL / LOCAL SALES TAX
SALES TAX SETOFF
PURCHASE TAX
CONCESSIONAL TAX FORMS
SERVICE TAX
OCTROI
6 June 2018
INDIAN LOCALISATION COVERAGE
6 June 2018
INDIAN LOCALISATION COVERAGE
MODVAT
UPDATING OF PART-I REGISTER FOR QUANTITY
UPDATING OF PART-II REGISTER FOR VALUE
UPDATING OF RG23D REGISTER FOR DEPOT
PRINTING OF EXCISE REGISTERS
PART-I / PART-II REGISTERS
RG1 REGISTER
RT12 RETURN
6 June 2018
INDIAN LOCALISATION COVERAGE
EXTENDED WITHHOLDING TAX
WITHHOLDING TAX ON DOWN PAYMENTS / INVOICES / PROVISIONS
ACCUMULATIONS
MULTIPLE TAX LINE ITEMS IN ONE INVOICE
CALCULATION ALTERNATIVES (GROSS, NET, OFFSET)
ROUNDING OPTIONS
PAYMENT DUE DATES BY BUSINESS PLACE
CHALLAN UPDATE AND ACCOUNT CLEARING
SURCHARGE ON WITHHOLDING TAX
CERTIFICATE NUMBERING FOR DIFFERENT SECTIONS / BUSINESS
PLACE
CERTIFICATE PRINTING WITH CUSTOMISABLE LAYOUT
ANNUAL RETURNS FOR VARIOUS SECTIONS OF INCOME TAX ACT
6 June 2018
INDIAN LOCALISATION - IMG
6 June 2018
INDIAN LOCALISATION - IMG
6 June 2018
IMG- ACTIVATE FI/CO INTERFACE
6 June 2018
IMG- ACTIVATE CIN FOR FISCAL YEARS
ACTIVE INDICATOR
6 June 2018
IMG- ACTIVATE PROCESSES
Activate Components
6 June 2018
IMG- ACTIVATE PRODUCTS
6 June 2018
IMG- GLOBAL SETTING – COMPANY CODE
1. Company code
2. CENVAT Document Type
3. DR / CR Overwrite Indicator
4. Automatic Balance Adjustment Indicator
5. Beginning of Government Fiscal Year
6. Invoice Selection Procedure – LIFO , FIFO
7. Number of Excise Invoice to be selected
8. Days to be considered for Invoice Selection
9. TDS Document Type
10. Excise Utilization Document Type
11. Excise Duty Rounding in Procurement Cycle
12. Excise duty rounding in sales and Distribution
13. Immediate credit for Capital Goods
14. GL Account for CVD
15. Exchange Rate Type
16. Exchange Rate type for Export
17. Changed By
18. Changed On
6 June 2018
IMG- GLOBAL SETTING – REGISTARTION ID
1. Registration ID
2. ECC NO
3. Excise Registration No.
4. Excise Range
5. Excise Division
6. Excise Collectorate
7. Additional Excise Duty Indicator
8. Special Duty Indicator Indicator
9. CESS Indicator
10. Number Items In Excise Invoice
11. Register Set Description
12. Partial CENVAT credit Indicator
6 June 2018
IMG- GLOBAL SETTING – PLANT
Registration ID
6 June 2018
IMG- GLOBAL SETTING – EXCISE GROUP
Creation of
Part-1 for
Block Stock
No. Of GR Per Creation of
Excise INV. Part-1 for
STO
Automatic
Posting
Indicator
Indicator for Auto Creation Of Folio Creation
Excise Group Registration ID Excise Invoice For RG23D
6 June 2018
IMG- GLOBAL SETTING – SERIES GROUP
Immediate Utilization of
MODVAT
No Utilization Indicator
Series Group For
creating Number
Range
6 June 2018
IMG- GLOBAL SETTING – EXCISE DEFAULTS
Tax Procedure
6 June 2018
IMG- GLOBAL SETTING – EXCISE DEFAULTS
6 June 2018
IMG- ACCOUNTING – TRANSACTION ACCOUNT
6 June 2018
IMG- ACCOUNTING – ASSIGN GL ACCOUNT
Assign GL account to
transaction type,
sub-transaction type
and account Name
defined in the earlier
step.
6 June 2018
IMG- ACCOUNTING – MININIMUM BALANCE
6 June 2018
IMG- LOGISTICS – INCOMING EXCISE INVOICE
6 June 2018
IMG- LOGISTICS – FIELD SELECTION
6 June 2018
IMG- LOGISTICS – PROCESSING MODE
6 June 2018
IMG- LOGISTICS – REFERENCE DOCUMENT
6 June 2018
IMG- LOGISTICS – REJECTION CODES
6 June 2018
IMG- LOGISTICS – MOVEMENT TYPES
Populate the
Movement Types
and register types.
EXCISE POPUP
This will enable the
POPUP during
preparation of
Goods Receipt
6 June 2018
IMG- LOGISTICS – SUB-CONTRACTING
6 June 2018
IMG- LOGISTICS – SUB-CONTRACTING
6 June 2018
IMG- SALES AND DISTRIBUTION
6 June 2018
IMG- ASSIGN BILLING TYPE TO DELIVERY
6 June 2018
IMG- EXCISE GRP & SERIES GRP DETERMINATION
6 June 2018
IMG- FORM TYPES
6 June 2018
IMG- FORM TYPES
6 June 2018
IMG- EXTENDED WITHHOLDING TAX
6 June 2018
IMG- EWT – BUSINESS PLACE
6 June 2018
IMG- EWT – ASSIGN DOCUMENT TYPE
6 June 2018
PROCUREMENT PROCESS
6 June 2018
PROCUREMENT SCENARIOS
LOCAL
MATERIALS
IMPORT
MATERIALS
SUB -
CONTRACTING
CAPITAL
GOODS
STOCK
TRANSFER
6 June 2018
TAX CALCULATION AT HUNTSMAN
PURCHASE
1. TAXES ON SALES & PURCHASE ARE MAINTAINED AT
FEDERAL LEVEL AND STATE LEVEL
2. THE EXCISE CONDITION IS MAINTAINED AT 100%
3. THE EXCISE RATE FOR THE MATERIAL IS MAINTAINED IN
CIN MASTER.
4. THE INPUT / OUTPUT TAX RATE IS MAINTAINED FOR
FEDERAL TAX AND STATE LEVEL TAX CONDITIONS
5. PERCENTAGE OF SETOFF ON INPUT TAX IS MAINTAINED IN
SETOFF CONDITION
6 June 2018
HOW TAXES ARE DETERMINED
6 June 2018
PROCUREMENT- LOCAL PURCHASE
SAP CIN
CREATE PO
Excise Rate
Determination
PRICING Based on Material /
Chapter ID and
Vendor Class
CREATE PO
Create Excise
Invoice for CVD.
PRICING This is entered
manually in Pricing
Update Part I - Qty
CREATE PO
Create Sub- Contract
Challan w.r.t mat. doc.
TRF.
Print Excise Challan
POSTING
Update Register
6 June 2018 This also updates the excise header / line item tables.
PROCUREMENT– CAPITAL GOODS
SAP CIN
CREATE PO
Excise Rate
Determination
PRICING Based on Material /
Chapter ID and
Vendor Class
6 June 2018 This also updates the excise header / line item tables.
PROCUREMENT– STOCK TRANSFER
SAP CIN
CREATE STO
Capture Excise
Details in RG23D
GR WRT Folio No. is created
DELIVERY for each material
received.
Update Registers /
Tables
6 June 2018
SALES PROCESS
10. MAINTAINING SEPARATE FOLIO NO. FOR ALL INCOMING
MATERIAL IN DEPOT .
11. MAINTAINING ENTRY NO. FOR EACH FOLIO FOR
OUTGOING MATERIAL IN DEPOT.
12. LEVY OF SERVICE TAX ON ALL SERVICES RENDERED
FROM FACTORY / DEPOT.
13. PAYMENT OF CESS ON CERTAIN CATEGORY OF
MATERIALS (IF APPLICABLE).
14. MAINTAINING OF EXCISE RULES
6 June 2018
SALES SCENARIOS
FACTORY
SALES
STOCK
TRANSFER
DEPOT
SALES
6 June 2018
TAX CALCULATION AT HUNTSMAN- SALES
6 June 2018
TAXES ARE DETERMINED BY THE SYSTEM
1. THE CHAPTER ID FROM CIN TABLE FOR THE MATERIAL
2. EXCISE RATE DERIVED FROM CHAPTER ID FROM CIN MASTER
3. IN TAX PROCEDURE 100% OF THE RATE IS CALCULATED
4. THE JURISDICTION IS DETERMINED BASEED REGION
MAINTAINED IN CUSTOMER MASTER AND PLANT,
5. IF THE REGION IS SAME THEN STATE LEVEL TAXES ARE
APPLICABLE ELSE FEDERAL TAXES WILL BE APPLICABLE . THIS
IS DETERMINED BY THE ROUTINES IN TAX PROCEDURES.
6. THE TAXES ON SALES AND PURCHASES ARE DETERMINED
BASED ON THE TAX CODES
6 June 2018
SALES SCENARIOS – FACTORY SALES
SAP CIN
DELIVERY
W.R.T STO
CREATED IN
PROCUREMENT
PGI
Excise Inv. WRT
SAP Billing Doc.
Selection of Rules
BILLING Update No. Range
Update Tables
This also updates the excise A/c Determination
header / line item tables. for EXCISE
6 June 2018
SALES SCENARIOS – DEPOT SALES
SAP CIN
EXCISE DUTY
• FORTNIGHTLY PAYMENT
6 June 2018
PROCESS OF WITHHOLDING TAX
TDS ON PAYMENT TDS ON INVOICE
UPDATE CHALLAN
ACCOUNTING
PRT CERTIFICATE
UTILIZATION
SELECTION OF
REGISTERS
RG23A,RG23C,PLA
PAYMENT
ACCOUNTING
6 June 2018
STATUTORY REGISTERS / REPORTS
RG23A PART I REGISTER
RG23A PART II REGISTER
RG23C PART I REGISTER
RG23C PART II REGISTER
RG1 REPORT
RT12 REPORT
57F REGISTER
RG23D REGISTER
TDS CERTIFICATES REPORT
TDS ANNUAL RETURN REPORT
6 June 2018
IMPORTANT CIN TABLES AND FUNCTION MODULES
TABLES :- All CIN tables start with J_1I and J_2I. There are 129 tables.
J_1IEXCHDR (Header data of excise doc.)
J_1IEXCDTL (Line item data of excise doc.)
J_2IRULES (Table for maintenance of
excise rules )
FUNCTION MODULES :- All CIN function modules start with J_1I . There are 151
Function Modules.
J_1I_DETERMINE_EXCISE_YEAR Determines the excise year
J_1I2_FI_POST_MODVAT_AMOUNT FI posting for a given modvat amt and
GR
J_1IEWT_CHALLAN_UPDATE Internal Challan Number Updates.
EWT-India.
6 June 2018
FISCAL YEAR
6 June 2018
NUMBER RANGES
Number Range Objects for CIN are different from the standard
SAP . There are 21 number range objects.
J_1ICERT No range for Certificate Printing-EWT India.
J_1IEXCINV Excise invoice number
6 June 2018
HOW NUMBER RANGE ARE DEFINED IN CIN
PLANT
EXCISE
GROUP
01
SERIES SERIES
01 02
NO.RANGE NO.RANGE
ID-01 ID - 01
NO.RANGE NO.RANGE
6 June 2018
Study Material
COUNTRY VERSION INDIA.doc
10_Classic Withholding Tax.ppt
9_Extended Withholding Tax.ppt
6 June 2018
Thank You
for Your Time !
For any
clarrification
Sundar_krishnan@satyam.com
6 June 2018