Settings for capturing Excise credit when company has only service tax registration

[former_member357396]

Dear Experts,

   I am working for a service based company they have only Service tax registration so they procure the machines(Capital goods) and use it for providing services. When purchasing the capital goods so how to capture excise duty when there are no CIN Settings and take credit on output service tax.

Regards

Badari

[former_member357396 · Accepted solution]

Hi Summit,

   Can we create two manual excise condition type in Pricing procedure instead of Tax procedure because we are thinking since Excise registration is not there, not to use the tax procedure since without excise group we cannot post in GR.

Regards

Badari

[former_member229982 · Accepted solution]

Hi Badaari,

Yes you can do that, as long as it it meets your statutory requirements.

I was not asking you to create an excise group for taking cenvat on capital goods. I was asking you to use Tax codes and create two additional tax condition types (Similar to VAT). You then don't need to use Excise groups for posting GR but only tax calculation procedure and tax codes will do.

Regards,

SP

[former_member357396 · Accepted solution]

Dear Sumit,

  Yes per your inputs, I will work it out.

Regards

Badari

[former_member229982]

You can take the credit outside CIN, just by making Financial postings.

You post the input Cenvat amounts in 50:50 ratio, using two different condition types in tax procedure, into Cenvat on capital goods Input GL and Cenvat on capital goods Receivable GL.

Take credit of Cenvat on capital goods Receivable GL in subsequent year by making a transfer posting to Cenvat on capital goods Input GL at the beginning of the subsequent year.

Utilize the amounts in Cenvat on capital goods Input GL, similar to Service tax Input GL, to pay off Service tax liability.

SP