Deductible and non-deductible tax in CIN???

Question

Hi experts
Can anybody explain me about deductible and non-deductible tax  in CIN.
Explain me with clear example from purchasing with excise duty point of view .
With some example of duty with some amount .
Thanks
SAP-MM

Answer 1

Hi,
Deductable Tax :- It is not part of your inventory...You have give Separate G/L in T code OB40.
Non Deducatable Tax :-  Part of yout inventory. No Separate G/L.
Supppose PO 10 Qty @ 10  = 100 Rs
Tax 4% Vat = 4
Total 104.
Now In Case of Dedutable at Time of GR , GR/IR      100 Cr
                                                                    Stock       100 Dr
At time of Excise Posting
                                    Cenvat Account        4  Dr.
                                    Cenvat Clearing           4   Cr.
Non Deducatable        GR/IR         104 Cr
                                    Stock         104 Dr
The Following Conditions Falls in both Category as
Deduct able tax:-
          JMOP    - IN BED Settoff %
          JEC1     - A/P Edu. Cess Settoff
          JSEP     - IN A/P H Ecess Setoff
          JVRD   - A/P VAT RM Deductable
SETOFF Must Be Maintained:-
JMX1 --     IN: A/P BED setoff
JEX1 ---      Ecess Setoff Sta
JHX1     IN: A/P SECess SOTot
Non Deductable Tax:-
                         JMIP    - IN BED Inventory
                         JEC2   - A/P Ecess Inventory
                         JSEI   - IN A/P H Cess Inventory
                        JIPC  - IN C Sales Tax INV
                         JVRN u2013 A/P VAT RM Non-Ded.
Condition For CVD in CIN :-
                         JCV1    - IN CVD e.g. 14%
                         JECV   - IN CVD Prim Edu e.g. 2%
                         J1CV  - IN CVD Sec Edu e.g. 1 %
Hope Help U !
Regards,
Pardeep malik