Material Master (Excise Data)

The part of the material master record that contains information relating to Indian excise duty. In
conjunction with other data, this data is used to calculate excise duty on various transactions.
The excise part of the material master is divided into the following screens:
Chapter IDs
On this screen, you define the chapter IDs and corresponding descriptions as described in the
excise tariff structure. This information is used when you create excise invoices and is also shown
in the various excise registers
Material and Chapter ID Combination
On this screen, you maintain the excise data relating to materials. For each material, specify:
Chapter ID
Whether the material can be sent to subcontractors
The material type
This denotes, for example, whether the material is a raw material, a capital good this affects the
CENVAT process or if it is a finished good on which excise has been paid, to be covered by the
Update of RG 1 and Part I Registers
Whether you accept more than one goods receipt per excise invoice, and if so, whether the excise
duty should be credited to the CENVAT account immediately a goods receipt is posted (multiple
credit) or not until all the goods receipts have arrived (single credit)
This information is valid for a given plant. If the information is valid for all the plants, however,
leave the Plant field blank.
Material Assessable Value
On this screen, you maintain the net dealer price and the assessable value of all materials that you
send to subcontractors or for any other issue. These values serve as the excise base value when
the materials are issued, and tell the system how much excise duty to reverse from your CENVAT
account.
CENVAT Determination
On this screen, you specify which raw materials are used to produce which finished (or semi
finished) goods. The system uses this information to determine whether it you can claim a CENVAT
credit for a material.
Excise Tax Rate
On this screen, you specify for each chapter ID every possible rate of excise duty that might apply,
so you must take into consideration each permutation of plant and customer; and each
combination of plant and vendor.
You can maintain the basic excise rates in the following forms:
Ad valorem
Specific
As a combination of both
For each rate, specify until which date it applies.
You can also maintain the additional excise duty and special excise duty in ad valorem form, should
any apply. If you need to give these rates as a fixed sum, use the Quantity Based AED and SED
screen. Additional Excise Rate
On this screen, maintain any cess applicable.

Exceptional Material Excise Rate

On this screen, maintain any exceptions that apply to the excise rates that you have defined.
Exceptions can apply to a single material from all vendors, of to a single material from one vendor
only. If you have an exceptional rate for a customermaterial combination, you can maintain it here
as well.
Sales Tax Setoff Percentages
On this screen, maintain the percentage of local sales tax on inputs that you can deduct against
LST on outputs. The setoff amount is deducted from the inventory valuation of the material.
Currently very few states, for example, Maharashtra and Gujarat, participate in this scheme.