tax code for capital goods

[Former Member]

Hi Gurus

I want create a tax code for capital goods which will have ED and sales tax.Cenvat credit 50% this year and balance next year. and sales tax on this.

Can any one provide with configuration steps for this tax code.

Regards

SAP Only

[Former Member]

Hi,

You need not create a sperate T-code for 50% claim, Tax Code will remain as normal with the normal rates,applicable rates.

Do the configuration for the Material in excise settings through <b>J1ID</b>.

Go to the radio button <b>Mateial and Chapter ID Combination</b> mention the Material, Plant and the <b>Material Type</b>.

The logic Works like this: Based on the Material type,ie for Assets& Tools, given against the material in J1ID system calculates the CENVAT. It is immeterial the material type given in the material master.

Hope this clarifies your query. Pl. Revert for Clarifications.

Regards,

Vijay

[Former Member]

Hi Vijay,

CIN is not configured as this is service company. But they want to adjust cenvat on capital goods with service tax.

Is it possible to do this settings without excise settings.

If so how, pl let me know

Regards

SAP Only

[Former Member]

Hi,

check this SAP Notes 796169 which says:

<b>Symptom</b>

The Budget passed by the Minister of Finance for the Fiscal 2004-05 has introduced the utilization of credit of Service Tax against CENVAT and viceversa.

This note contains transportable requests of a New Monthly Utilization transaction J2IUN, which allows user to use service tax credit to pay Cenvat payable and viceversa.

<b>Other terms</b>

J2IUN, Cross Utilization, Service Tax, New Utilization Transaction,

Budget 2004, Education CESS

<b>Reason and Prerequisites</b>

Legal changes.

<b>Prerequisites are user should have CIN installed and should have one Excise group and Plant settings.</b>

<b>U can use J2IUN for payment of Service Tax from Cenvat Cr.</b>

Hope this will clarify your query

Regards,

Vijay