J2i8-Capital goods transfer of credit

[Former Member]

Dear Experts,

  We have transfer the capital goods credit 50% in j2i8 and it is updated in j2i9 also.Where the amount which we transferred will reflect in CIN?Is that amount will reflect will doing the utilisation? Next 50% we need to do in next year.What is the exact process to proceed transfer the capital goods?

Regards,

Narendra

[former_member187965 · Accepted solution]

Hi Narendra,

The transfered amount will reflect in RG23C Part 2 register. Yes, this amount will reflect during utilization.

As per the Excise Rule for capital goods, 50% excise duty credit can be availed in the current financial year and balance 50% credit to be taken in the next financial year. In SAP while posting Part 2 entry for capital goods, 50% excise duty amount is posted to the CENVAT on hold account. This balance can be viewed in J2I8.

Now, in the next financial year to avail this balance excise duty credit, you have to transfer this balance amount through J2I8. After posting entry through J2I8, the CENVAT on hold account gets credited and RG23C Part 2 account gets debited. This means now the balance is available in RG23C Part 2 account and which can be utilized during utilization in J2IUN.

[Former Member · Accepted solution]

Hi Shaliesh,

Thanks  for u r reply.

  50%excise duty credit is done in april itself.Now how i will now whether that 50% amount is utlilised or not?

50% amount already appearing in j2i9.Another 50% amount i can utilize in next year only.Upto next year that invoices will appear in j2i8 or i need to do any transaction to avail that credit?

I need to explain my client.

Regards,

Narendra

[kailas_ugale · Accepted solution]

Hi,

50%excise duty credit is done in april itself

Fisrt J2I8 is run in current period only, as 50% excise duty credit taken in April 2011 for example and 50 % should be post to cenvat on hold account.

so April2011 to March 2012 amount will be on 50% hold.

so you can Run J2I8  in 1 April2012,so this amount will be reflcted in J2IUN screen as well as in BED,cess,Ecess receivable G/L account also,

check accounting document for J2I8

Regards

Kailas Ugale

[former_member187965 · Accepted solution]

Hi Narendra,

Extract RG23C Part 2 register for April by J2I5 and J2I6, you will find the 50% credit amount is posted to RG23C Part 2 account. Now this amount is available for utilization. After utilization again extract RG23C Part 2 register and you will find that the total available balance will be reduced. Also you will find the utilization entry. This way you can check by extracting the excise part 2 registers whether the amount is utilized or not.

Up till next financial year you don't have to do any transaction. The invoices will appear in J2I8. Now, as the financial year changes, you can avail the 50% balance credit which appears in J2I8. To avail the balance 50% credit, just go to J2I8, select the invoice line and click on "Transfer Credit", thats it.

After posting entry in J2I8, extract the RG23C Part 2 register and you will find the amount (which posted in J2I8) will be credited.