Understanding the ARE 3 Details Entry for a Purchase Order

According to the Indian tax authority, the transactions in the P2P cycle are exempted from excise tax when the excise unit is a 100 percent export-oriented unit (EOU) and the supplier is an excise registered manufacturer. In this case, you give an ARE 3 certificate along with the invoice to the supplier when you receive the goods. The supplier presents this document to the Government to obtain the tax exemption.

You use the Purchase Order Rule 57F(4) - New program (P75I323) to enter the ARE 3 certificate information. The system stores the information in the Purchase Order Receiver AR3 Information table (F75I323). To print the information about the purchases received under the ARE 3 document, you need to run the Record of Receipts under the Bond report (R75I323).