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Former Member
Mar 10, 2009 at 05:59 AM

Commercial rounding for capital goods

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Commercial rounding off of all duties

All the Duties are rounded up in PO & MIGO with some routing development through ABAP.

Now client requirement is that in case of capital goods

1. If suppose that in Capital Goods Cenvat is Rs. 45.00, in same year only 50% credit is available hence Rs. 22.50 i.e. after rounding off it is available to us 23.00 and in on hold account only Rs. 22.00 should be available, but present SAP system does not propose the same

2. If Value of Secondary Education Cess is Rs.1/- for capital goods then credit available in current year should be Rs.1/- & on hold account it should be Zero

Business is saying that it is statutory requirement as per Govt. Notification

How much Govt is firm on this rule & how other companies are achieving this using SAP?

Another Question is that While reversing CENVAT credit taken for capital goods without rejecting material (Only Duty reversal because credit wrongly taken)

We have to pass Excise JV through J1iH & reverse 100 % duty. STD procedure is that we have to transfer 50 % duty from Hold account to the RG23 C part 2 then reverse 100 % duty

But business is saying that it is wrong practice & against excise law .In this case how to handle CENVAT on Hold Account.

( I have Already used OB90 & routing Number 17 is working fine but not for above case )

Thanks

Edited by: sachin patil on Mar 10, 2009 7:00 AM