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Issue in servcie tax credit entries at the time of MIRO

ankit_agarwal8
Contributor
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Dear Experts,

We have following entries at the time of MIRO of service PO in our system,

GR/IR A/C Dr                          100

Cen Rec Service tax   Dr.         12

Cen Rec Servcie Tax Css Dr.   00.36

    To Vendor A/c                       112.36

Now after new changes in excise cenvat rules, business can't take cenvat credit after six month. Means if invoice is of today's date i.e. 22/12/2014 then business can take credit of this invoice till 22/05/2015. Now business wants, if they post invoice after six month i.e. after 22/05/2014, cenvat credit should go to expense GL maintained in PO means will proceed as non cenvat PO. Entries should be like

GR/IR A/c Dr.                       100

Exp  A/C         Dr                  12.36

  To Vendor A/c                     112.36

How can I achieve this requirement. Need your guidance.

Regards,

Ankit K. Agarwal

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Answers (1)

Answers (1)

ankit_agarwal8
Contributor
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Dear Experts,

Please guide.

Regards,

Ankit K. Agarwal

former_member198650
Active Contributor
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Hi Ankit,

You have to create one more tax code in FTXP which should be service tax non credit nature i.e. non deductible. So at the time of invoice posting you have to change the tax code, then system will post the tax to expenses at automatically.

Regards,

Mukthar

ankit_agarwal8
Contributor
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Hi Mukthar,

Thanx for your kind reply.

But in service PO, we may have different different  'tax rate' tax codes.

In that case we need to maintain multiple non credit nature tax code with different different tax rates??

Regards,

Ankit K. Agarwal

former_member198650
Active Contributor
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Hi Ankit,

Yes, you have to create multiple tax codes which are non deductible nature.

Regards.

Mukthar