AED is showing 100% in PO Invoice tab

[former_member190537]

Hello,

While Procurement of material, we are using the conditions of Excise duty setoff, In that we are Using the 4% AED also.

i have checked all the setting of AEd in Excise registration, and Excise defaults.

when i saw the Taxes in PO(Invoice tab) then iam getting the JM01 100% and JAo1 100%.... But the JM01 and JA01 are calculated is correct , why it is showing 100% here.

In FTXP we are maintained the JMo1 and JA01 as 100 like this.

Regards

mahesh naik

[former_member529134 · Accepted solution]

Hello

They are Excise duty setoff percentage.

That is u can avail complete cenvat credit for them.

I will explain setting off in detail.

BED 14% and BED setoff % 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*114%=1710

Cenvat payable=Rs.210

Since BED Steoff % 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 210-140 to the authorities.

if BED Steoff % was 50% u had to pay 210-(140*.05).

Hope it is clear now.

[former_member190537 · Accepted solution]

Plz can you explore more on this?

[former_member529134 · Accepted solution]

We are doing everything in CIN to capture the duties and offset them, ie tax payable=output tax received- input tax paid.

But in some cases we might not be eligible for availing complete CENVAT credit.

ie if Offseting % is 50, even if we pay 100 rs as input tax, we can setoff only 50 rs with the output tax.

When we capture the excise duties using tax condition types in the procedure, we need the setoff % on that particular tax also.

Hope it is clear now.

In FTXP we maintain this setoff % against excise duty deductible condition.

Regards

[Former Member]

Hi Mahesh,

which tax procedure you are following?

Regards

Pavan

[former_member190537]

we are following the setoff taxcode

[Former Member]

I wanted to know whether you use TAXINJ or TAXINN

[former_member190537]

We are Using the TAXINJ

In Tax code\

JMO1--100 Account key J11

JAO1--100 Account key J12

JEC1--2.00 Account key J14

JA1s--1.00 Account key J15