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Non deductable tax behavior in MIGO

Former Member
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Dear All

We are using tax procedure TAXINN, to handle excise duties which are deductable type (i.e Cenvat credit can be claimed).

There are cases, where Cenvat cannot be credited back; to handle such cases, we wanted to maintain the non-deductable tax conditions (JMIP-for BED, JEC1for ECS, JSE1 for SHE Cess) set with a separate tax code.

At the time of GR, system is showing Zero values in excise tabs (at header as well as item);

Is this correct procedure or not?

Thanks in advance

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Answers (1)

Answers (1)

Former Member
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This is not correct. At the time of GR, it will show e.d. break-up. However, this E.D. value will be loaded to inventory. You verify the configuration of JMX1 in tax procedure. I think you have not added step no of non-cenvatable condition types in JMX1 etc.

Former Member
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Dear Chintu

Thanks for your reply.

But I have maintained the set off conditions already as below.

For deductable condition types (JMOP, JECP, JSEP) I have maintained the corresponding set off conditions types (JMX1, JEX1, JHX1) with 100% set off

Similarly, for non-deductable condition types (JMIP, JEC1, JSE1), I have maintained the corresponding inventory condition types (JMX2, JEX2, JHX2) with 100% inventory update

I have tried with a tax code for deductable condition types, it is showing excise split in MIGO, But with other tax code with non-deductable condition types, it is not showing the excise split.

Former Member
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Hi,

Check whether you have maintained the above Non-deductible ED and the set off conditions in the Classify Condition types settings under Excise determination in IMG.

Also check you have maintained the rates for the above conditions & whether the same is coming in PO or not?

Thanks & Regards,

Former Member
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Hi

Everything is intact as we are using almost standard SAP in excise part.

Can you please tell me the importance of Posting indicator in OBCN transaction.

Also please brief me what is the procedure if I required to have excise duties in PO (BD, ECess, She cess) but I don't want to claim this excise from the government as a Cenvat credit.

Thank you

Former Member
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if the condition type is for non deductible tax then that will be added to the material cost and so it will be like this

BSX db

GR/IR cr

and if u want the tax lines to come like this

BSX dr

GR/IR cr

Tac Cr

then please do the follwing in the account ket assigned to the tax condtion type there u need to set the value to separate line rather

check this with the FI consultant they can do that

Former Member
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HI Srini,

IN tax-procedure u will assign a key. For this key, in OBCN txn, check-box of non-deductible tax is to be flagged. I think this will solve ur problem.

Former Member
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HI Chintoo,

As u mentioned that u r using condition based tax procedure. and u wants to calculate the non -deductible excise duties.

First of all u check the transection keys/Accruals are maintained or not in tax procedure i.e NVV. and condition records

in FV11 for u r concerned condition type i.e BED,CESS.H.E.CESS and VAT or CST/LST . and it will shows how much amount

u will not Cenvated in PO condition i.e NAVS condition type according to u r Tax code. It is not necessary to maintain the setoff conditions........

Thanx