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How to: Set Up Excise Tax for India

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In Microsoft Dynamics NAV, you must set up the following information to use excise tax:

  • Excise business posting groups.

  • Excise product posting groups.

  • Excise posting rates.

  • Excise control codes.

  • Excise number series.

  • Excise tax for your company.

The procedures in this topic show how to set up excise tax. Before you continue with these procedures, you must set up the following prerequisites:

To set up an excise business posting group

  1. In the Search box, enter Excise Business Posting Groups, and then choose the related link.

  2. Fill in the fields as described in the following table.

    Field Description

    Code

    Specifies the unique excise business posting group code. You can enter a maximum of 10 alphanumeric characters.

    Description

    Specifies the excise business posting group description. You can enter a maximum of 50 alphanumeric characters.

  3. Choose the OK button.

    For more information, see How to: Map an Excise Business Posting Group to a Vendor.

To set up an excise product posting group

  1. In the Search box, enter Excise Product Posting Groups, and then choose the related link.

  2. Fill in the fields as described in the following table.

    Field Description

    Chapter No.

    Specifies the chapter number for the item or fixed asset.

    Heading No

    Specifies the heading number for the item or fixed asset.

    Code

    Specifies the unique excise product posting group code. You can enter a maximum of 10 alphanumeric characters.

    Unit of Measure Code

    Specifies the unit of measure code for the excise product posting group.

    Description

    Specifies the excise product posting group description. You can enter a maximum of 50 alphanumeric characters.

  3. Choose the OK button.

    For more information, see How to: Map an Excise Product Posting Group to an Item.

To set up excise posting

  1. In the Search box, enter Excise Posting Setup, and then choose the related link.

  2. Fill in the fields as described in the following table.

    Field Description

    Excise Bus. Posting Group

    Specifies the excise business posting group code.

    Excise Prod. Posting Group

    Specifies the excise product posting group code.

    From Date

    Specifies the date from which the combination of excise product posting group and excise business posting group is effective.

    SSI

    Select to indicate that the various duties are applicable for small scale industries only.

    Excise Payable Account

    Specifies the general ledger account in which the excise value is accumulated during outward movement of excisable goods.

    Cenvat Cr. Receivable Account

    Specifies the general ledger account to which the excise value is credited during inward movement of excisable goods.

    Cenvat Cr. (Deferred) Account

    Specifies the general ledger account to which 50 percent of the Central Value Added Tax (CENVAT) receivable for capital goods is deferred. This amount can be used for the next financial year.

    BED Calculation Type

    Specifies the calculation type for Basic Excise Duty (BED). This is a percentage of the line amount for a particular combination of an excise business posting group and an excise product posting group.

    ADC VAT %

    Specifies the Additional Duty of Customs Value Added Tax (ADC VAT) rate for the combination of excise business posting group and excise product posting group.

    ADC VAT Calculation Formula

    Specifies the ADC VAT formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    eCess %

    Specifies the educational cess (eCess) rate for the combination of excise business posting group and excise product posting group.

    eCess Calculation Formula

    Specifies the eCess formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    SHE Cess %

    Specifies the secondary and higher education cess (SHECess) rate for the combination of excise business posting group and excise product posting group.

    SHE Cess Calculation Formula

    Specifies the SHECess formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    SED %

    Specifies the Special Excise Duty (SED) rate for the combination of excise business posting group and excise product posting group.

    SED Calculation Formula

    Specifies the SED formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    SAED %

    Specifies the Special Additional Excise Duty (SAED) rate for the combination of excise business posting group and excise product posting group.

    SAED Calculation Formula

    Specifies the SAED formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    CESS %

    Specifies the cess rate for the combination of excise business posting group and excise product posting group.

    CESS Calculation Formula

    Specifies the cess formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    NCCD %

    Specifies the National Calamity Contingent Duty (NCCD) rate for the combination of excise business posting group and excise product posting group.

    NCCD Calculation Formula

    Specifies the NCCD formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    ADET %

    Specifies the Additional Duty of Excise on Tea (ADET) rate for the combination of excise business posting group and excise product posting group.

    ADET Calculation Formula

    Specifies the ADET formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    ADE %

    Specifies the Additional Duty of Excise (ADE) rate on motor fuel for the combination of excise business posting group and excise product posting group.

    ADE Calculation Formula

    Specifies the ADE formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    BED %

    Specifies the BED rate for the combination of excise business posting group and excise product posting group.

    BED Calculation Formula

    Specifies the BED formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    Custom eCess %

    Specifies the custom eCess rate for the combination of excise business posting group and excise product posting group.

    Custom eCess Calc. Formula

    Specifies the custom eCess formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    Custom SHECess %

    Specifies the custom SHECess rate for the combination of excise business posting group and excise product posting group.

    Custom SHECess Calc. Formula

    Specifies the custom SHECess formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    AED(GSI) Amount Per Unit

    Specifies the Additional Excise Duty (Goods of Special Importance) (AED (GSI)) rate for the combination of excise business posting group and excise product posting group.

    AED(TTA) %

    Specifies the Additional Excise Duty (Textile and Textile Articles) (AED (TTA)) rate for the combination of excise business posting group and excise product posting group.

    AED(GSI/TTA) Calc. Formula

    Specifies the AED (GSI/TTA) formula to calculate the duty component for purchases, sales, and transfers of items based on the combination of excise business posting group and excise product posting group.

    Choose the OK button.

To set up an excise control code

  1. In the Search box, enter E.C.C. Nos., and then choose the related link.

  2. Fill in the fields as described in the following table.

    Field Description

    Code

    Specifies the unique excise control code assigned by the excise authorities. You can enter a maximum of 10 alphanumeric characters.

    Description

    Specifies the excise control code description. You can enter a maximum of 50 alphanumeric characters.

    Type of Unit

    Specifies the type of unit for which the excise control code is set up.

  3. Choose the OK button.

To set up excise number series

  1. In the Search box, enter Excise No. Series, and then choose the related link.

  2. Fill in the fields as described in the following table.

    Field Description

    Type

    Specifies the excise register type for which the number series is created.

    E.C.C. No.

    Specifies the appropriate number from the Excise Control Code (ECC) number table. For more information, see E.C.C. Nos..

    Description

    Specifies the description for the combination of the Type field and the E.C.C. No. field.

    No. Series

    Specifies the number series code that is used to assign numbers to the Type field and the E.C.C. No. field.

  3. Choose the OK button.

To set up excise tax for a company

  1. In the Search box, enter Company Information, and then choose the related link

  2. Fill in the fields as described in the following table.

    Field Description

    E.C.C. No.

    Specifies the excise control code for excisable items given by the excise department.

    C.E. Range

    Specifies the central excise range number under whose jurisdiction the company is registered.

    C.E. Commissionerate

    Specifies the central excise commissionerate name under whose jurisdiction the company is registered.

    C.E. Division

    Specifies the division of the central excise commissionerate under whose jurisdiction the company is registered.

  3. Choose the OK button.

See Also

Tasks

How to: Map an Excise Business Posting Group to a Vendor
How to: Map an Excise Product Posting Group to an Item
How to: Set Up Countervailing Duty
How to: Print Daily Register and Monthly Register Reports

Concepts

Excise Tax Overview

Other Resources

Excise Duty
Excise Business Posting Groups
Excise Product Posting Groups
Excise Posting Setup
E.C.C. Nos.
Excise No. Series
Company Information
Disposals