CIN-Excise Duty Utilization

Excise Duty Utilization

Use

When you create an excise invoice, the system allows you to display the information about the excise duty, including which CENVAT accounts the excise will be debited to. To access this function, choose.

If a company defaults in the fortnightly payment of CENVAT, the excise collectorate can enforce an immediate payment of excise. Alternatively, you may have excess CENVAT credit and want to pay the duty immediately and not wait for a fortnight. This is also the case for some export removals where you claim the refund from DGFTA, in which case you need to pay the duty immediately.

Prerequisites

To enable immediate utilization of CENVAT, you can do so in the Country Version India Implementation Guide (CIN IMG), by choosing Global Settings ® Series Groups.

Features

The information is shown in two group boxes:

* Excise details

This shows you the excise invoice type, which you can change if necessary by choosing . It also shows you how much excise duty will be charged on the sale.

* Balance utilization

This shows you which CENVAT accounts the excise duty will be debited to.

The system automatically proposes which CENVAT accounts it is to debit the excise duty to. It first takes the RG 23 accounts, and if there is not enough credit to cover it, it debits the remainder to the personal ledger account (PLA). The cess component of excise can only be taken from the PLA.

If immediate utilization is active for a series group, you can change the default utilization proposal. You can decide from which register to pay the amount. When you save the invoice, the system generates Part II entries in the appropriate registers. These excise invoices are not listed further during fortnightly payment of CENVAT.

If immediate utilization is off for the series group, the system proposes the excise duty values directly in the RG 23A fields, but the postings are made to intermediate accounts for excise duty. The system does not create any Part II entries. Entries are posted into a dispatch register. When you then run the fortnightly payment program, the system picks up these invoices and allows payment of CENVAT.

For information about debiting the excise duty to a different company, see Intercompany Excise Duty Utilization