1.1 CIN Pricing

CIN delivers one tax procedure that can be used universally for India. 4 SD pricing procedures and 1 MM procedure are also provided.

Tax procedure - TAXINJStep CTyp From To Man. Reqt SubTo Stat AltCTy AltCBV ActKy Description100 BASB       362   Base Amount110   100     X 352   Calculated Call120       X   Sub total200 JMO1 120       354   IN: A/P BED setoff205 JAO1 120       364   IN: A/P AED setoff207 JSO1 120       368   IN: A/P BED setoff210 JMO2 120       362 NVV IN: A/P BED setoff212 JAO2 120       365 NVV IN A/P AED inventory214 JSO2 120       369 NVV IN: A/P BED setoff215   100 214     X   BASE+all duties217 JIP3 215       370 363 NVV IN Sales tax setoff220 JIP1 215       363 NVV IN C Sales tax inv.230 JIP2 215       371 363 NVV IN L Sales tax inv.250 JSER 100       ESA IN: Service tax cred260 JSVD 250       ESE IN: Service tax debi510 JMOD 120     X 363   IN: A/R BED512 JAED 120     X 366   IN: A/R AED513 JSED 120     X 360   IN: A/R SED514 JCES 120     X 367   IN: A/R Cess515       X   sub total520 JIN1 515       MWS IN: A/R CST530 JIN2 515       MW3 IN: AR LST540 JIN4 520 520       MWS IN: A/R CST Surcharg

550 JIN5 530 530       MW3 IN: AR LST Surcharg

The standard procedure with all excise conditions and Sales conditions is pre delivered. All tax calculations happen within TAXINJ. From the pricing procedure the net price gets transferred to the BASB condition of tax procedure. A/R Excise duty conditions are statistical in TAXINJ. These get copied to the SD pricing procedure and get posted from there. From release 46C it is mandatory that all tax conditions of the tax procedure be available in SD pricing also. The posting for the A/P excise duty as well as Sales taxes in both input and output happens from the FI tax procedure.

Consequently during incoming cycle, all restrictions for a tax apply to Excise duty also.

The determination of sales tax rate is using tax codes only. So you need to have as many tax codes as the number of taxes. Even when the rate for a tax code changes you should not delete the tax codes since this can create problems for the old documents. So rate changes have to be addressed by maintaining separate tax codes.

SD pricing

CIN come s pre delivered with 4 pricing procedures for Indian customers.You need to define the same condition types in the FI taxes as well as SD pricing. But at the same time we need new set of condition types which have been configured as discount surcharge conditions.Thre pre delivered condition types are as follows JAED A/R Add. Excise duty Taxes PercentageJCED A/R Cess Discount or surcharge PercentageJCES A/R Cess Taxes PercentageJEX2 A/R Basic Excise Discount or surcharge PercentageJEXA A/R AED Discount or surcharge PercentageJEXS A/R sED Discount or surcharge PercentageJFCG Free - 100% discount Discount or surcharge PercentageJFRE Frieght India Discount or surcharge Gross weightJHAC Handling charges Discount or surcharge QuantityJIN1 Central sales tax Taxes PercentageJIN2 Local sales tax Taxes PercentageJIN4 CST surcharge Taxes PercentageJIN5 LST surcharge Taxes PercentageJINS Insurance (India) Discount or surcharge PercentageJMAN Manual Excise Taxes PercentageJMOD A/R Basic Excise Taxes PercentageJOC1 Octroi accural Discount or surcharge PercentageJOC2 Octroi Discount or surcharge PercentageJSED A/R Special Exc.duty Taxes PercentageJTRD Trade discount Discount or surcharge PercentageJTX1 Tax class 2 Taxes PercentageJTX2 Tax class 3 Taxes PercentageJTX3 Tax class 4 Taxes Percentage

CIN also give 2 standard access sequences. JIND is used for accessing condition UTXJ.This condition is used for determining the tax code. JDUM is the access sequence that is used for excise condition types.

JFACT is a template of pricing procedure for Sales from Factory. JMAN is a manual condition for Excise. When manual override is required for the calculated excise value it could be given for the condition JMAN. The condition value formula 355 checks and copies this on to the Basic Excise duty value. UTXJ is the condition in JFACT which triggers the calculated call of tax procedure TAXINJ. Condition records need to be maintained for UTXJ with the appropriate tax code. Access sequence JIND has been assigned to the condition UTXJ. Base value for calculation of excise derived from the condition base value formula 351. This ensures that if an assessable value is maintained for the material through Excise rate maintenance (J1ID) then that will be used as basis for

excise calculation. In the absence of an assessable value the selling price will be used for excise calculation.JMOD is a FI Tax condition which gets the Basic Excise duty from calculation formula 352. JEX2 is a copy of JMOD and is a Sales pricing condition. The value of JEX2 gets posted for Excise account key. This ensures that the cost accounting of excise value paid is done correctly. In cases where commercial invoice is created after utilization the condition value formula 353 ensures that the actual CENVAT utilized is accounted as excise. Similarly JAED is a FI Tax condition which gets the Additional Excise duty from calculation formula 352. JEXA is a copy of JAED and is a Sales pricing condition. The accounting is done for the value of JEXA. JSED is a FI Tax condition which gets the Special Excise duty from calculation formula 352. JEXS is a copy of JSED and is a Sales pricing condition. The accounting is done for the value of JEXS. JCES is a FI Tax condition which gets the CESS from calculation formula 352. JCED is a copy of JCES and is a Sales pricing condition. The accounting is done for the value of JCED.

Sales Tax - Identification of Central or Local Sales tax.Both CST and LST rates can be maintained in one tax code in the same jurisdiction. (Refer Tax code V8 ). The rates are maintained at the tax code level. But then the formula 352 eliminates one of them based on the region of ship-to party and region of delivering plant. You can also have separate tax codes for LST and CST. Step CTyp From To Man. SubTo Stat AltCTy AltCBV ActKy Print Mdt Description100 PR00   1   ERL X X Price200 JMAN 100 190     X   X   Manual Excise300 UTXJ 100 190     X 352 351       Tax Jurisdict.Code350 JMOD 200 X D X 355       A/R Basic Excise375   100 190     X       Base Prices

400 JEX2 350   2   353 EXD X   A/R Basic Excise450 JAED 100 190 X G X 366       A/R Add. Excise duty475   375 400     X       Base prices + BED500 JEXA 450   5   353 EXD X   A/R AED520 JSED 100 190 X F X 360       A/R Special Exc.duty525   475 500     X       Base Price + BED + AED540 JEXS 520   4   353 EXD X   A/R sED550 JCES 100 190 X H X 367       A/R Cess575   525 540     X       Base Price +BED+AED+SED600 JCED 550   6   353 EXD X   A/R Cess625   575 600     X       Base Price+ BED+AED+SED+Cess700 JTRD 625       ERS X   Trade discount720 JIN1 625 X   X   X   Central sales tax740 JIN2 625 X   X   X   Local sales tax760 JIN4 625 X   X   X   CST surcharge775   625 770     X       Base Price+Excise+ST+Discount780 JOC2 775 X     ERF X   Octroi790   625 700     X       Base Price+Excise+Discount800 JFCG 780 790     X   X   Free - 100% discount

Export Sales Pricing Procedure - JEXPOR

There is no Excise condition in the Exports pricing. But excise can be calculated at MODVAT utilization.

Step CTyp From To Man. Reqt SubTo Stat AltCTy AltCBV ActKy Print Mdt Description100 PR00   1   ERL X X Price500 UTXJ 100 200   010     352       Tax Jurisdict.Code600 JFRE       ERF X   Frieght India700 JINS       ERF X   Insurance (India)

Depot Pricing Procedure - JDEPOTDepot pricing procedure is exactly similar to the Factory pricing procedure with the exception that the condition value formula attached to the excise condition is 356. This ensures that the excise value from the referred excise invoices for the delivery is picked up and used by the commercial invoice.

Step CTyp From To Man. SubTo Stat AltCTy ActKy Print Mdt Description100 PR00   1   ERL X X Price200 JMAN 100 190 X   X   X   Manual Excise300 UTXJ 100 190       352       Tax Jurisdict.Code350 JMOD 200 X D X 355       A/R Basic Excise375   100 190     X       Base Prices400 JEX2 350   2   356 EXD X   A/R Basic Excise450 JAED 100 190 X G X 366       A/R Add. Excise duty475   375 400     X       Base prices + BED500 JEXA 450   5   356 EXD X   A/R AED520 JSED 100 190 X F X 360       A/R Special Exc.duty525   475 500     X       Base Price + BED + AED540 JEXS 520   4   356 EXD X   A/R sED550 JCES 100 190 X H X 367       A/R Cess575   525 540     X       Base Price +BED+AED+SED600 JCED 550   6   EXD X   A/R Cess625   575 600     X       Base Price+ BED+AED+SED+Cess700 JTRD 625       ERS X   Trade discount720 JIN1 625 X   X   X   Central sales tax740 JIN2 625 X   X   X   Local sales tax760 JIN4 625 X   X   X   CST surcharge775   625 770     X       Base Price+Excise+ST+Discount780 JOC2 775 X     ERF X   Octroi790   625 700     X       Base Price+Excise+Discount800 JFCG 780 790 X   X   X   Free - 100% discount

Stock Transfer Pricing Procedure - JSTKTRStock transfer pricing has only excise conditions as it is used only for the calculation of excise value.

Step CTyp From To Man. SubTo Stat AltCTy AltCBV ActKy Print Mdt Description100 PR00   1   ERL X X Price200 JMAN 100 190 X   X   X   Manual Excise300 UTXJ 100 190       352 351       Tax Jurisdict.Code350 JMOD 200 X D X 355       A/R Basic Excise375   100 190     X       Base Prices400 JEX2 350   2 X 356   X   A/R Basic Excise450 JAED 100 190 X G X 366       A/R Add. Excise duty475   375 400     X       Base prices + BED500 JEXA 450   5 X 353   X   A/R AED520 JSED 100 190 X F X 360       A/R Special Exc.duty525   475 500     X       Base Price + BED + AED540 JEXS 520   4 X 353   X   A/R sED550 JCES 100 190 X H X 367       A/R Cess575   525 540     X       Base Price +BED+AED+SED600 JCED 550   6 X   X   A/R Cess625   575 600     X       Base Price+ BED+AED+SED+Cess780 JOC1 625       ERF X   Octroi accural

MM Pricing

CIN provides a customized procedure for import processing J_IMPStep Cntr CTyp From To Man. Reqt SubTo Stat Accrls Print Description001 01 P000   1     X Gross Price001 02 P001   005 1     X Gross Price005 00   001 002   9       Gross value010 01 R000 001 X       X Discount % on Gross010 02 R001 X       X Discount/Quantity010 03 R002 X       X Absolute discount010 04 KR00 X       X Header Disc.(Value)010 05 K000         X Contrct HeaderDisc %010 06 R003 X       X Discount % on Net016 00           X Net incl. disc.017 00 JEXC   5 X     Manual Excise Value019 00   016         X Net incl. disc.- 2021 01 NAVS 019     X     Non-Deductible Tax022 00   019 021   3       Net incl. tax024 00 JCDB 022       FR3 X Basic customs duty025 00 JCV1 022 024   `     FR3 X CVD Percentage026 00 JCDS 022 025       FR3 X Special customs duty028 00 FRB1       FR1 X Freight (Value)035 01 SKTO 019   017   X     Cash Discount040 00     2       Actual Value070 00 GRWR 019   008 C X     Statistical Value

All the customs duty conditions have been configured as delivery cost conditions with separate accounting keys.