To process Excise for Sales returns

This functionality is specific for India.

The excise duty functionality for incoming goods deals with the goods returned from the customers. The goods are referred as Sales returns.

If the excisable goods are returned back to manufacturing premises for rework, or for any other reason, the receipts for these goods must be maintained separately. If the goods fall under the excise category, a Goods pass out Document must be received along with the goods. You must capture the information in the Goods pass out document. The same amount of credit can be utilized for outgoing goods.The receipt process is similar to the normal purchases. For details refer to, Excise duty process in Normal Purchases.

Sales returns goods are classified as follows:

  • Goods removed from manufacturing premises after a rework
    The manufacturer pays the excise duty on goods returned, at the time of the removal of goods. The assessable value of the goods must be recalculated, because, the cost of the goods may include the cost of labor and material used for the rework.
  • Goods removed from manufacturing premises with out rework
    The manufacturer pays an amount equal to the CENVAT credit taken at the time of the receiving the goods. The same tax code used for the original sales order, must be used. The same amount of the credit availed is cancelled.
Note

If the goods are resold after rework or with out rework, the user must enter the correct Assessable value (ASV for the excise) manually, and the normal outgoing process must be followed.

The financial postings are generated at the time of the sales return. For details refer to, Financial postings for Sales returns.