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Former Member

tax code for capital goods

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.


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    Former Member
    Aug 20, 2007 at 03:41 PM


    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.



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    • Former Member Former Member


      check this SAP Notes 796169 which says:


      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