How to: Set Up Excise Tax for Maximum Retail Price

To set up excise tax for Maximum Retail Price (MRP), you must set up the following prerequisites:

• Excise posting setup to define the percentage of maximum retail price for excise components. For more information, see Excise Posting Setup.

• Sales price to define the maximum retail price, abatement percentage, and applicability of maximum retail price. For more information, see Sales Price Table and Sales Prices Window.

• Item card to define the maximum retail price, abatement percentage, and applicability of maximum retail price. For more information, see Item Table and Item Card Window.

  Note

  You can define the maximum retail price in the Item Card window, only when the maximum retail price has not been defined in the Sales Prices window. For more information, see Sales Prices Window.

• Item categories to define the maximum retail price, abatement percentage, and applicability of maximum retail price. For more information, see Item Category Table.

  Note

  You can define the maximum retail price in the ECC No./Item Categories window, only when you transfer the item from one location to another. For more information, see ECC No./Item Categories.

To set up excise postings for maximum retail price

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

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

   Field	Description
   Excise Bus. Posting Group	The excise business posting group.
   Excise Prod. Posting Group	The excise product posting group.
   From Date	The starting date for excise posting.
   BED Calculation Type	The percentage of maximum retail price for the Basic Excise Duty (BED) calculation type.
   AED(GSI) Calculation Type	Specify % of MRP to indicate the percentage of maximum retail price for Additional Excise Duty (Goods of Special Importance) (AED(GSI)) calculation type.
   AED(TTA) Calculation Type	Specify % of MRP to indicate the percentage of maximum retail price for Additional Excise Duty (Textile and Textile Articles) (AED(TTA)) calculation type.
   SED Calculation Type	Specify % of MRP to indicate the percentage of maximum retail price for Special Excise Duty (SED) calculation type.
   SAED Calculation Type	Specify % of MRP to indicate the percentage of maximum retail price for Special Additional Excise Duty (SAED) calculation type.
   CESS Calculation Type	Specify % of MRP to indicate the percentage of maximum retail price for CESS calculation type.
   NCCD Calculation Type	Specify % of MRP to indicate the percentage of maximum retail price for National Calamity Contingent Duty (NCCD) calculation type.
   ADET Calculation Type	Specify % of MRP to indicate the percentage of maximum retail price for Additional Duty of Excise on Tea and Tea Waste (ADET) calculation type.
   eCess Calculation Type	Specify % of MRP to indicate the percentage of maximum retail price for educational cess (eCess) type.
   SHE Cess Calculation Type	Specify % of MRP to indicate the percentage of maximum retail price for Secondary and Higher Education cess (SHECess) type.
   ADC VAT Calculation Type	Specify % of MRP to indicate the percentage of maximum retail price for Additional Duty on Customs (ADC) VAT calculation type.
   Custom SHECess Calc. Type	Specify % of MRP to indicate the percentage of maximum retail price for custom SHECess calculation type.
   Custom eCess Calculation Type	Specify % of MRP to indicate the percentage of maximum retail price for custom eCess calculation type.

3. Choose OK.

To set up sales prices for maximum retail price

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

2. On the Home tab, in the Manage group, choose Edit.

3. Select the required customer, and on the Navigate tab, in the Sales group, choose Prices.

4. In the General section, fill in the required fields as described in the following table.

   Field	Description
   MRP Price	The maximum retail price for an item.
   Abatement %	The abatement percentage applicable for excise tax. The abatement percentage is used when goods are transferred from one location to another location. The excise duty is calculated on the basis of maximum retail price minus abatement percentage.
   MRP	Select to indicate that the item falls under the maximum retail price provision of the Excise Act.

5. Choose OK.

To set up item cards for maximum retail price

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

2. Select the item, and on the Home tab, in the Manage group, choose Edit.

3. On the Tax Information FastTab, fill in the required fields as described in the following table.

   Field	Description
   MRP Value	Select to indicate that the maximum retail price is relevant to the item.
   MRP Price	The maximum retail price for an item. Use the value in this field when the maximum retail price is not defined in the Sales Price window.
   Abatement %	The abatement percentage applicable for excise tax. The abatement percentage is used when goods are transferred from one location to another location. The excise duty is calculated on the basis of maximum retail price minus abatement percentage.

4. Choose OK.

To set up item categories for maximum retail price

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

2. Select the item, and on the Home tab, in the Manage group, choose Edit.

3. On the Navigate tab, in the Item group, choose ECC No./Item Categories.

4. Fill in the required fields as described in the following table.

   Field	Description
   Maximum Retail Price	The maximum retail price for an item. Use the value in this field when you transfer goods from one location to another.
   Abatement %	The abatement percentage applicable for excise tax. The abatement percentage is used when goods are transferred from one location to another location. The excise duty is calculated on the basis of maximum retail price minus abatement percentage.
   MRP	Select to indicate that the item falls under the maximum retail price provision of the Excise Act.

5. Choose OK.

See Also

Tasks

How to: Calculate Excise Tax for Maximum Retail Price Using Sales Documents
How to: Calculate Excise Tax for Maximum Retail Price Using Transfer Orders

Concepts

Excise Tax Overview
Assessable Value

Other Resources

Sales Price Table
Sales Prices Window
Item Table
Item Card Window
Item Category Table
Excise Posting Setup Window
ECC No./Item Categories Window