Conditions in Pricing Procedure - TAXINN
I am new to CIN. Trying to know about CIN.
As per our MM Tax Calculation Procedure TAXINN, here we have two condition types for each condition. For example JMOP - A/P BED percentage. and JMX1 - BED setoff.
It is same for Education Cess Conditions.
While maintaining condition record, Amounts for conditions are maintained like -
JMOP - 14 and JMX1 - 100
i want to know for what purpose these two conditions are maintained and what is their impact for tax calculation ?
Thanks in Advance !
Gregory Mathews replied
JMOP 14% and JMIX 100 means you are paying tax @ 14% and you are eligible for 100% CENVAT credit for that.
Ill give an example:
You purchase a material for material price Rs.1000 @ 14%
ie you are paying Rs.140 as excise.
the total value of the purchase = 1140
u have a total sale of 1500 also @ 14%
so total sale amount (excluding sales tax) = 1500*115%=1725
Since JMIX is 100, at the time of setting off the output and input cenvat, u can avail the credit for total rs. 140
ie u have to pay only 225-140 to the authorities.
if JMIX was 50% u had to pay 225-(140*.05).
Hope it is clear now.