Calculate Excise for items sent to subcontractor

gsbalasa

Dear Experts,

I have a client whose requirement is like this

Excise amount has to be calculated while sending the goods to the subcontractors and raise a Tax invoice for the same

Please suggest me in this case!!!

Thanks and Regards

Gowri Shanker

ssingla

What will be the value of such tax invoice? If the value is not zero then will it be debited in subcontractor account? Is sales tax calculated and deposited to government on such invoice?

gsbalasa

They will pay this tax to government. and when the subcontractor send the FG to these client they will avail the excise credit.

ssingla

I am not a great fan of Indian Localization Production Subcontracting so have never laid hands on it. Though I am aware that "Create Liability" exist for all delivery challans. You can call that function after you post the delivery on SubCon order and then customize a report to generate a invoice like document.
Meanwhile you have not answered my questions fully. What will be the value of invoice and is it different from a regular sales invoice in accounting terms?