Tax Procedures – TAXINJ vs TAXINN

What is the difference between maintaining tax codes in TAXINJ and TAXINN

Both procedure TAXINJ and TAXINN has thin line difference where as TAXINN procedure is condition based &  TAXINJ is fomula based.If you drag down details of  TAXINJ is fomula based,where you can find Routine( selection with logic in line of condition type)  are play vital role in tax calculation.

If you selected TAXINN procedure , you can maintained tax rate with respective condition types  in FTXP during creation of tax code.But you should maintain condition record in FV11 t.code for condition types JMX1 & JMX2  are as 100%. Also you can maintain  tax rate for condition types Basic Excise Duty,Edu cess , H. Edu cess,VAT/CST in FV11 t.code in stead of maintaining tax rate in FTXP.

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1.     TAXINJ is a tax calculation procedure for country version India and it supports formula-based excise determination. You need to configure this tax calculation procedure

Excise Conditions

  JMOD   IN: A/R BED

  JNED    IN: A/R NCCD

  JAED    IN: A/R AED

  JSED    IN: A/R SED

  JCES    IN: A/R Cess

  JECS    A/R Educational CESS

LST/CST/VAT Conditions

  JIN1      IN: A/R CST

  JIN2      IN: AR LST

  JIN4      IN: A/R CST Surcharge

   JIN5      IN: AR LST Surcharge

   JIN6      A/R VAT Payable

  JIN7      A/R CST Payable VAT

Service Tax Conditions

  JSE4    Service Tax

  JES4    ECS on Service Tax

2.      Set up the following Account Key

IMG Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Basic Settings  Check and Change Settings for Tax Processing.

  VS6    Input Tax

3.      Define the Tax Procedure according to the settings in the figures below.

You can do this in the IMG  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Basic Settings  Check Calculation Procedure  Define Procedures. Tcode:OBBG

4.      Assign Tax Procedure to the country.

You can do this in the IMG  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Basic Settings  Assign Country to Calculation Procedure. Tcode:OBYZ

The standard system comes with two tax calculation procedures. TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination.

Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.

Since the exact rates of excise duty can vary on a large number of factors, such as which vendor you purchase a material from, or which chapter ID the vendor stocks the material under, you create condition records for every sort of excise duty.

When you come to enter a purchasing document, the system applies the excise duty at the rates you have entered in the condition records.

Activities,

Customizing

Make the settings in Customizing for Logistics u2013 General, by choosing Taxes on Goods Movements  India  Basic Settings  Excise Duties Using Condition Technique and u2026  Account Determination.

These activities include one activity where you define a tax code for condition-based excise determination.

Master Data

Create condition records for all excise duties that apply, and enter the tax code for condition-based excise determination in each.

TAXINN Vs TAXINJ:

2013-10-05_162341

Definition: condition-based excise determination

A method that the system uses of determining excise duty in India.

This method requires you to create condition records for each combination of vendor or customer and material (and possibly other conditions).When you create a purchasing document, the system calls the tax procedure assigned to India. The tax procedure finds all of the condition records that you have created for that combination of vendor and material.

When you create a sales document, the excise duties and sales taxes are determined by the pricing procedure (not the tax procedure).

Definition: formula-based excise determination

A method that the system uses of determining excise duty in India.

This method was used in the Country Version India Add-On and requires you to maintain additional data in the Excise Rate Maintenance transaction, J1ID.

When you create a purchasing document, the system calls the tax procedure assigned to India. Each of the excise duties in the tax procedure has its own condition types, and each condition type is assigned to a formula. This formula instructs the system to calculate the excise duty using the data that you have maintained in the Excise Rate Maintenance transaction.

When you create a sales document, the system determines the excise duties and sales taxes using the pricing procedure (not the tax procedure).

Pricing Procedures: 

The primary job of a pricing procedure is to define a group of condition types in a particular sequence. The pricing procedure also determines:

  • Which sub-totals appear during pricing
  • To what extent pricing can be processed manually
  • Which method the system uses to calculate percentage discounts and surcharges
  • Which requirements for a particular condition type must be fulfilled before the system takes the condition into account

Example of a Pricing Procedure:

If a sales department processes sales orders for a variety of foreign customers, the department can group the customers by country or region. A pricing procedure can then be defined for each group of customers. Each procedure can include condition types that determine, for example, country-specific taxes. In sales order processing, you can specify pricing procedures for specific customers and for sales document types. The system automatically determines which procedure to use.

Choose Basic Functions ® Pricing ® Pricing control ® Define and assign pricing procedures.

Assign Pricing Procedure to Sales Area

T Code: OVKK and assign respective sales area for different kind of pricing procedure.

PrProc

Pricing procedure follows below assignment.

Pricing procedure  condition types(1:N)  access sequence (1:N) ⇒ accesses(1:N) ⇒ condition tables(1:1) ⇒ condition fields.

During creation you can follow bottom-up sequence.

1. Create condition table with condition fields. CUSXXXXX

2. Create access sequence and maintain accesses assigned with condition table. ZAS ->CUSXXXXX

3. Create condition type and assign access sequence. ZCT->ZAS

4. Create pricing procedure and assign condition types. ZPP->ZCT

Determination part.

In order to determine pricing procedure 5 parameters needed.

Sales org + distribution channel + division + customer pricing procedure + document pricing procedure ,SO+DC+DIV+CP+DP = ZPP

and we assign pricing procedure against above 5 parameters in the configuration.

based on condition maintenance we restrict the application where you gonna maintain the condition record.

lets say you restricted it to product and successfully you maintained a condition record for testing.

now I am using this product in a transaction document(example ZAG). you called the transaction type(ZAG) and entered the customer ABC and entered some product XYZ with quantity. now the minute you enter the product and hit on enter.

System searches for relevant pricing procedure to determine. by formulating all 5 parameters from the sources based on org model it brings respective sales area data(SO+DC+DIV) and based on ABC’s customer pricing procedure(you can find it in sales area data a/block under billing area.

based on transaction type it will bring the value document pricing procedure ( ZAG’s transaction category header data).

after forumalting all 5 parameters it determines corresponding pricing procedure from the configuration.

again based on the maintained condition record it will apply the value on to the screen.

based on number of different condition types(diff calculation types) it will show different price element in the output. and all these calculation will be done by IPC.

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Central excise & Service Tax challans

eFiling Offline Utilities/Schema

Assessees can file their Central Excise and Service Tax Returns using following offline Excel Utilities/XML Schema by downloading the same from this page.
It is advised that the latest Excel Utility may be used every time, for filing Returns, by downloading it from the link given below

Click on the respective Excel Utility/XML Schema hyperlink to download. Please refer the detailed Instructions Sheet embedded within the utility before using the same.

Central Excise
Excel Utilities Last Updated XML Schema Last Updated
Download ER1 Return Excel Utility 19-11-2012 Download XML Schema for ER1 Return 10-10-2012
Download ER2 Return Excel Utility 10-10-2012 Download XML Schema for ER2 Return 10-10-2012
Download ER3 Return Excel Utility
(For Filing ER-3 returns for the Quarter Oct-Dec.2011 Onwards)
10-10-2012 Download XML Schema for ER3 Return 10-10-2012
Download ER4 Return Excel Utility 06-04-2012
Download ER5 Return Excel Utility 06-04-2012
Download ER6 Return Excel Utility 06-04-2012
Download ER7 Return Excel Utility 06-04-2012
Download ER8 Return Excel Utility 10-10-2012
Download CEC Return Excel Utility 10-10-2012 Download XML Schema for CEC Return 10-10-2012
Download Dealer Return Excel Utility 10-10-2012 Download XML Schema for Dealer Return 10-10-2012
Download ER3 Return Excel Utility
(For Filing ER-3 returns for the Quarter upto July-Sep.2011)
10-10-2012
Service Tax
Excel Utilities Last Updated XML Schema Last Updated
Download ST3 Return Excel Utility
(For Filing ST-3 returns for the period upto Oct-Mar 2011)
18-01-2013 Download XML Schema for ST3 Return 06-04-2012
Download ST3 Return Excel Utility
(For Filing ST-3 returns for the Quarter April-June 2012)
18-01-2013 Download XML Schema for ST3 Return 22-10-2012

Learning Management Software (LMS)

Click on the respective hyperlink to down-load Learning Management Software (LMS) for Assessees, a self learning training software.
Central Excise
Service Tax

GAR7 Challans

Click on the respective hyperlink to down-load GAR7 Challans.
– Central Excise ( Front || Reverse )
– Service Tax ( Front || Reverse )

CIN -SAP T CODES

Transaction Action
J1I2 Prepare a sales tax register
J1I3 Create outgoing excise invoices in batches
J1I5 Update the RG 1 and Part I registers
J1IEX Incoming Excise Invoices (central transaction)
J1IEX_C Capture an incoming excise invoice (excise clerk)
J1IEX_P Post an incoming excise invoice (excise supervisor)
J1IF01 Create a subcontracting challan
J1IF11 Change a subcontracting challan
J1IF12 Display a subcontracting challan
J1IF13 Complete, reverse, or recredit a subcontracting challan
J1IFQ Reconcile quantities for subcontracting challans
J1IFR List subcontracting challans
J1IH Make a CENVAT adjustment posting
J1IIN Create an outgoing excise invoice
J1IJ Assign excise invoices to a delivery for sales from depots
J1INJV Adjust withholding tax Item
J1INREP Reprint a withholding tax certificate for a vendor
J1IQ Year-End Income Tax Depreciation Report
J1IR Download register data
J1IS Process an excise invoice (outgoing) for other movements
J1IU Process exemption forms
J1IW Verify and post an incoming excise invoice
J1IX Create an incoming excise invoice (without reference to purchase order)
J2I8 Transfer excise duty to CENVAT account
J2IU Remit excise duty fortnightly
J2I9 Monthly CENVAT return
J1IG Excise invoice entry at depot
J1IGA Create additional excise entry at depot
J2I5 Extract data for excise registers
J2I6 Print excise registers

CIN-Register RG 23A and 23C

Introduction

CIN means Country Version India comes with functions for calculating, posting, remitting, and reporting excise duty, and for handling incoming and outgoing excise invoices.

Country Version India offers two ways of calculating excise duty, condition-based calculation procedures (TAXINN) and formula-based calculation procedures (TAXINJ). TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination.

As per Indian Law, the excise authorities require you to maintain the following registers relating to excise duty.

  • Register RG 1
  • Register RG 23A, Parts I and II (for raw materials)
  • Register RG 23C, Parts I and II (for Capital goods)
  • Register RG 23D (applicable only to Ist or IInd stage dealers)
  • Personal Ledger Account (PLA)

Besides, ER-3 (formerly RT-12) returns have to be filed monthly (or quarterly for SSIs).

Register RT-12 Register RG 23A and 23C

When the ordered materials arrive, you post the goods receipt and the excise invoice. The R/3 system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.

A record of all receipts and issues related to excisable materials is being kept in excise register in RG 23A (Raw Material) and RG 23C (Capital goods) by manufacturing plants. The register consists of two parts:

  • Part I shows the quantities of the materials.
  • Part II shows the amounts of excise duty on the materials, and how much you have transferred to the CENVAT accounts.

Part I Entries

When you enter a goods receipt for excisable materials, the system automatically asks you if you want to create the Part I entry in Register RG 23A or RG 23C. If so, the system generates a Part I entry. If not, it does not, but you can generate all missing Part I entries later.

In the following two cases, the system does not automatically generate Part I entries for goods issues of excisable materials;

  • A goods issue for vendor returns
  • A goods issue for stock transport orders for plants (in case of Goods Movements transaction only)

Part II Entries

The system automatically creates an entry in Part II of the appropriate register in case of posting of an incoming excise invoice, or an outgoing excise invoice. All Part II entries are serially numbered. An accounting document for each posting is created by the system to transfer the various types of excise duty to the appropriate CENVAT account.

CENVAT Document

A CENVAT document is an accounting document that the system automatically creates when it generates a Part II entry. The following accounting entry passed in case of Part II entry generation

For an incoming excise invoice;

    Account                         Debit         Credit
    Basic Excise Duty               1500.00
    CENVAT Clearing Account                       1500.00

The excise duty is cleared from the clearing account on entering of vendor invoice.

For an outgoing excise invoice;

   Account                          Debit         Credit
   CENVAT Suspense Account          1700
   Basic Excise Duty                              1500
   PLA                                            200