| # Subcontracting in India Localization This functionality is specific for India. The subcontracting functionality in India localization supports the subcontracting process of an excisable Work-In-Process (WIP) item and the movement of input and output items in a subcontracting production operation. The input and output items of a subcontracting operation are defined in the WIP Items (tisfc9136m00l) session. Subcontracting an excisable WIP item When an excisable WIP item or input items are sent to the subcontractor, you must also send a returnable GPD (57F4 challan). You must send an intimation document to the concerned excise authorities with the details of the excisable input items. The subcontractor processes the input items and returns the processed item with the returnable GPD. If the entire subcontracting operation is completed and the output item is received from the subcontractor within the period specified by the excise authorities; you are exempted from the excise duty. Otherwise, you must pay the excise duty for the input items which are moved out of your warehouse but not received back. The excise liability is then booked as a Journal Voucher from finance. You can use the Print Dutiable Subcontracting Orders (tisfc9410m00l) session, to print the details of the subcontracting orders for which you must pay the excise duty. Related topics To use Subcontracting in India Localization |