Availing full CENVAT Credit for Capital goods

Hi,
In our client, they want avail full cenvat credit for Capital goods in the present fiscal year itself. How can we do this in SAP? Plz. explain me.

Hi Pawan,
You cannot avail total 100% Credit on the CENVAT paid on capital purchase as per the goverment rules.
The puirpose of maintaining the goods as capital goods are that you are only eligible for 50% credit in the current fiscal year and remaining 50% Credit in next Fiscal Year. its nothing that we configured, it is standard functionality in the country version. The Excise Transaction Type CAPE which come in to play at the time of capital procurement.
1. If your Client Requirement is to take 100% Credit for this material, then ask them to maintain Chater ID for this Material in J1ID as RAW materail. and During Excise Auditing period your client has to give relevent explaination to Excise Authority.
2. If your client has maintained in J1ID as capital , you can take the Remaining 50% Credit in current fiscal year also using J2I8, Before using this transaction verified from Excise Authority.
Or else As per my knowledge you cannt take 100% excise credit for Capital goods.
Cheers
Manoj K Singh

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Cenvat credit of Capital goods

Hi,
From the last year 2011, I heard that the cenvat credit for capital goods can be taken 100 % in the first year itself.
How to the make the changes accordingly so that the 100 % tax amount goes to cenvat account instead of posting 50% to cenvat account & 50 % to cenvat on-hold account and then doing J2I8 to transfer of credits from cenvat on-hold account to cenvat account.
Regards
Madhusudan

Any solutions??
regards
Edited by: madhusnb4 on Jan 23, 2012 1:27 PM

Cenvat credit on capital goods.

Dear all,
1. There is a rule that the cenvat credit in respect of capital goods shall be allowed for the whole amount of the duty paid on such capital goods in the same financial year if such capital goods are cleared from the factory as such in the same financial year.
2.The system is designed in such a way that the cenvat credit in respect of capital goods received in a factory or in the premises of the duty paid of output service at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same financial year.
Please suggest us how to configure the system for the point no :1
Thanks & Regards,
A.Anandarajan.

By standard 50% credit can be taken on first year,If u want to take full credit use transaction J2I8,
Also refer both links
SAP MM CIN Settings
http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/207dd2ad-bf92-2b10-a88b-e3a4a01ca7fc
Capital Procurement in SAP
http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f
Edited by: Jeyakanthan A on Apr 22, 2010 2:01 PM

While taking balance cenvat credit on capital goods not showing J2I8

DEAR ALL
While taking balance cenvat credit (Carry forward) on capital goods not showing in J2I8 transaction, in j1iex is Header level is showing INPROCESSES But item level is showing POSTED.
in register PART2 is Upted.
Thanks And Regards
Sonu

Hi,
In capital goods procurement we will use 50% excise this year and rest of 50% credit we will use it in next year.
Bcoz of this in header level its showing incomplete and the invoice posted for 50% created Part 2 entries.
Hope its clear.
reg
Durga
*Assign points if the info is useful

How can we claim 100% cenvat credit on capital goods relating ADDl CVD

Due recent changes in Excise Law we can claim 100% Cenvat credit on ADDL CVD. But as per the present Oracle India Financial set ups it is not possible to claim 100% on capital goods in the same year.

Hi,
First of all, As per our country legal and statutory requirments, we can not utilize 100% CENVAT in the same FY.
Best Regards,
Chandra

Subsequent availment of 50% credit on Capital Goods

Dear All,
We have uploaded the balance to cenvat on hold account during golive (last year) ,which is to be utilized in this year.
As per the normal process we transfer the balances through transection J2I8.Here only transection releated data is appearing.It is not showing the opening balance(uploaded during golive).
Please tell me how we can utilize this amount.This issue is very urgent as huge amount is lying in this account.
Thanks in advance.
deepti

Hello,
The settings before 01.04.2010 were same. However, after thorough checking of the GL A/cs, I have following observations -
1) Plant 1 - Balance as on 31.03.2010 in Cenvat on Hold A/c -Rs. 195080. It is upload balance & t.code used is FBVB
    There are some more transctions in this A/c which are reversed due to wrong entries.
    Balance in Excise Duty RG 23 C as on 31.03.2010 - NIL
2) Plant 2 - Balance in Cenvat on Hold A/c as on 31.03.2010 is Rs. 166701. Again this is an upload balance with FBVB
    Balance in Excise Duty RG 23 C as on 31.03.2010 - Rs. 56931.62
3) Plant 3 - No upload balance. All the transactions are routed through J1IEX except 1 from FB01
    Balance as on 31.03.2010 - Cenvat On Hold A/c - Rs. 86876.06
                                                 ED RG 23C - NIL
Hence, would like to know -
1) Any separate procedure to take the credit of upload entries?
2) If the Balance in ED RG 23C A/c is NIL, will it affect on taking credit?
Thanks & Regards,
Reshma

AED Posting for Capital Goods

Hi
For Capital Goods, excise availed will be 50% for this financial year and 50% for next financial year. Is it applicable for AED/CVD for imported goods also.
Rgds
Srini

Businesses are allowed to set off excise duty on purchases of capital goods against excise duty on outputs. However, unlike with raw materials, you can only set off half of the duty in the first year, and the rest in any year after that.
Prerequisites
In the material master, you have classified the capital goods as such.
Because duty on capital goods is handled using excise transaction type CAPE, you must also have specified that you want this transaction to credit the excise duty to the CENVAT on hold account. You make this setting in Customizing for Logistics u2013 General, by choosing Taxes on Goods Movements ® India ® Account Determination ® Specify Excise Accounts Per Excise Transaction.
You must then have specified which G/L account is the CENVAT on hold account, again in Customizing for Logistics u2013 General, by choosing Taxes on Goods Movements ® India ® Account Determination ® Specify G/L Accounts per Excise Transaction.
Features
When you post an excise invoice that contains capital goods, the system posts half of the excise duty to your CENVAT account and posts the rest to a G/L account for CENVAT on hold.
In following years, you can use a report to identify the capital goods with excise duty on hold and transfer the duty to the CENVAT account (see Transfer of CENVAT Credit on Capital Goods).
Activities
When working with excise invoices that include capital goods, note the following:
Capturing vendor excise invoices
When you create an excise invoice with capital goods, you have to set the material type to A (assets), C (consumables), or T (tools).
Posting excise invoices
When you come to post the excise invoice, the system posts only half of the excise duty to the CENVAT account. The system does not round the amount off.
Transfer of CENVAT Credit on Capital Goods
You use this report to display a list of the vendor excise invoices where the vendor has levied excise duty but you have not posted it (in full) to your CENVAT account.
This is particularly useful in the case of capital goods, in order to find out how much credit remains from previous years.
Features
To access the report, from the SAP Easy Access screen, choose Indirect Taxes ® Procurement ® Excise Invoice ® Reports ® Balance Credit for Capital Goods.
Selection
On the selection screen, enter:
Organizational data
Data of the documents that you want
Output
The system displays a list of excise invoices with excise duty outstanding. It shows you:
The total amounts of the various types of excise duties levied on the excise invoice
How much duty has still to be posted to the CENVAT account
Select the excise invoices that you want and choose Transfer credit. If you want to transfer only a portion of the remaining amount, enter this amount as the amount to be credited.
The system creates an accounting document to post the duty to the CENVAT account and creates an entry in the Part II register.
Regards'
eswarmanu...

Accounting Effect for Capital Goods Purchase

Hi,
Iam using SAP 8.8 PL 13. How does the accounting takes place in case of an Item marked as Fixed Asset in Item Master?
In GL account determination I have assigned Capital Cenvat Credit A/c. for Capital Goods on Hold A/c.
Suppose I purchase an Fixed Asset Item for Rs.10000/- from a Vendor who has also been assigned Asset A/c in BP Master. I have created separate tax code for capital goods. The tax code is BED 10 %.
In Incoming Excise Invoice I get the Following JE effect.
                                                           Debit               Credit
Capital Cenvat Credit -                      Rs.10
Capital Cenvat on Education Cess    Rs.10
Capital Cenvat Credit                         Rs.5
Capital Cenvat Credit on HS Cess     Rs.5
Capital Cenvat Credit                         Rs.500
Capital Cenvat Credit                         Rs.500
Incoming Cenvat Clearing A/c                                    Rs.1030
Can somebody explain how this works?
Rgds
Kalli
Edited by: Kallicharan Nadar on Aug 30, 2010 11:22 AM

Hi Kalli,
In Administration-> Setup-> Financials-> G/L Account Determination-> Purchaseing Tab-> Tax Sub Tab-> "Capital Goods On Hold Percentage set" - 50 % and set GL in "Capital Goods On Hold Account" once you done these setting. When you are going to make Incoming Excise Invoice transaction that time system is booking 50% excise amount in current year and remaining 50 % will book in next year and same for Cess and ShCess.
Cenvat credit on capital goods is allowed only when it is received in the factory. However, only 50% of the credit may be availed in the financial year when the capital goods are received in the factory and the balance 50% may be availed in any subsequent financial year, provided the capital goods are in the possession of the manufacturer. The Cenvat Credit Rules, 2004, do not impose any condition upon the manufacturer to avail of the credit only when the capital goods are put to use on the commissioning of the plant.
Refer...
http://www.cbec.gov.in/excise/cx-rules-main.htm
Thanks
Sachin

Transfer of credit of capital goods

Hi all,
when i do transfer of credit for capital goods by J2I8 t.code, when i click on transfer button the acc. doc. is generated
and part 2 is posted,but the entry is not removed from list when i run that tcode again.why is it so?

dgk100 wrote:
When i click on transfer button the acc. doc. is generated
> and part 2 is posted?
Now what you are thinking a/c document generated and part 2 posted it is actually not
1.If you check in table J_1IPART2 you will not get any entry even though system showed that Part 2 posted with a number
2.Now secondly about A/C document if you check that a/c document you will find that it is actually it was your earlier a/c document which was generated after you posted Part2 in J1IEX ( i.e after GR ) and not the transfer of credit entry
So verify what I told is also happening in your system or not
This problem is due to closed posting Period both from MM and FI (i.e both must be open)
So make sure your
1.Material period is open (MMRV)
2.Check FI period is also open
If not open the current period and then post J2I8 and check it must not appear again in the list

50% credit on capital goods for previous year is not availed

Dear All,
The go-live date for my client was 01.10.2009. Now, in Apr, 2010 when the client is trying to get the 50% credit on Capital Goods (t. Code j2i8), system is not generating any data of the previous year. (From Oct, 09 to Mar'10). However, if we see the GL Balace for 'Cenvat On Hold A/c' as on 31.03.2010, it shows a balance of Rs. 2.50 lakhs approximately.
Can you please tell me why system is not showing any details through j2i8 for previous year?
Thanks & Regards,
Reshma

Hello,
The settings before 01.04.2010 were same. However, after thorough checking of the GL A/cs, I have following observations -
1) Plant 1 - Balance as on 31.03.2010 in Cenvat on Hold A/c -Rs. 195080. It is upload balance & t.code used is FBVB
    There are some more transctions in this A/c which are reversed due to wrong entries.
    Balance in Excise Duty RG 23 C as on 31.03.2010 - NIL
2) Plant 2 - Balance in Cenvat on Hold A/c as on 31.03.2010 is Rs. 166701. Again this is an upload balance with FBVB
    Balance in Excise Duty RG 23 C as on 31.03.2010 - Rs. 56931.62
3) Plant 3 - No upload balance. All the transactions are routed through J1IEX except 1 from FB01
    Balance as on 31.03.2010 - Cenvat On Hold A/c - Rs. 86876.06
                                                 ED RG 23C - NIL
Hence, would like to know -
1) Any separate procedure to take the credit of upload entries?
2) If the Balance in ED RG 23C A/c is NIL, will it affect on taking credit?
Thanks & Regards,
Reshma

Monthly return of Excisable goods and Availment of CENVAT credit here system is showing Report for SECess 0%

Hai experts,
when i was Running the J2IER1 for Monthly return of Excisable goods and Availment of CENVAT credit there system is showing for SECess 0%
but it has to be BED,ECS,SECS (6,2,1)
i selected Details of Manufacture, Clearance and duty Payable in that
for some chapter ID's BED,ECS it is showing correct values
for SECess it is showing 0 which is incorrect
my client is saying that why it is showing 0%,for which transaction it is showing 0%.
can any one help me....
how will i get to know for which transaction it is showing Exactly
what kind of input can i get from J2IER1 for finding the salutation
Thanks in Advance,
Regards
purna

Hai Binoy Vargis,
Thank you for giving me reply
i think this pic can give you more info please have a look
thanks in advance
Regards
Purna

Unable to avail credit 50% balance of previous years credit on capital good

Dear All,
Cenvat on Hold :
Unable to avail credit 50% balance of previous years credit on capital goods.
When Capital On-Hold is taken for a year(for vendors) and selected a Vendor and when Transfer Credit is clicked,the error message appears.(TCode - J2I8)
Cannot Reconcile : Crossed Return Date, please Reverse
Message no. 8I582
Pls guide.......
Regards
Sachin

Hi,
The above error message looks to be a strange one in J2I8.
As per the above message, check whether there is any pending subcon-challans due for reversal using J1IFR transaction.
Also check whether you are getting subcon challans in J2I8.
Finally, check whether any SAP notes are available.
Thanks & Regards,

50% Credit in VAT for Capital Goods(Assets)

Dear SAP MM Experts,
My client need to take 50% VAT credit in the First year and remaining 50% in the next year for Assets(Capital Goods). Currently I have configured 50% Cenvat credit for Excise duty, it was working very well using J1ID.
But for VAT, what configuration is necessary to take 50% VAT credit for Captial goods(Assets). Right now I use JVCD for taking 100% to VAT and JVCN to make it as inventory(Non Deductible).
Please do the needful.
Thank you.
Regards,
Baskar

This is standard behavior of SAP. In case domestic purchase, we can avain 50% CENVAT on additional excise duty (AED).
But in case of Import , we can avail 100% CENVAT for capital goods on additional customs duty (ADC).
Understand the difference between ADC & AED.
Try to convince client for the same. If he is not convinced, better write to SAP. Don't make changes related to subtransaction type 'IP'.

Form E.R. - 1 (return of excisable goods and availment of CENVAT credit)

What are the tables involved in Form E.R. - 1 (return of excisable goods and availment of CENVAT credit)

Hai Binoy Vargis,
Thank you for giving me reply
i think this pic can give you more info please have a look
thanks in advance
Regards
Purna

In J2I9 , cenvat not showing in the Abstract for capital Goods

Hi
In the T-code J2I9, System not showing the BED values in Abstract report for Capital goods.
Edcess and HScess are displayed.
excise invoice,RG23 part no. is generated & also values were available in table J_1Ipart2
please reply

Hi
The BED capital Goods is posted and it is there in the Table also,Ecess and Hsces are displayed .
In the Annexure option of the J2I9, the BED amount along with Ecess and HScess are displayed,
but when we select the Abstract option of J2I9, The BED amount is not displayed,only other two
Ecess and HScess are displayed.
please reply

Availing full CENVAT Credit for Capital goods

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