CENVAT CREDIT 100% TAKEN IN CASE AED ON CAPITAL GOODS INSTEAD OF 50%

[Former Member]

Hi Experts,

This is with reference to the Cenvat Credit taken on Additional Excise Duty Payable on Capital Goods.

Presently in SAP 100% Cenvat Credit has been taken into 26010713 CENVT CAP GOOD (CAD) but as per law 50% Credit should be taken in the same year in which

Duty has been paid and balance 50% should be taken in next year.

The same treatment has been taken correctly in excise records.

And i want to know only for imported there has been any law change regarding 100% credit should be paid in same year.

Regards,

Manjax

[former_member329706]

Yes, this is std behaviour of the system,as per the law the AED will be allowed to take 100% credit in first finanacial year only.

For more information refer the below link.

http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442...

[Former Member]

Thanks for your reply but in excise its taking 50% and 100% Cenvat Credit has been taken into 26010713 CENVT CAP GOOD (CAD), in excise records also it should take 100%

Regards,

Manjax

[former_member329706]

Only in case of capital Procurment were AED is applicable can be avialed 100 % credit, in other case of assset procurement were AED is not involved other conditions only can be availed 50% in the first finanacial year and 50% in coming fin year.

[Former Member]

but my question is for capital goods only in CENVAT CREDIT 100% taken in to account but in excise also it should take 100% but y it is taking 50%

Regards,

Manjax

[former_member329706]

I mean only for AED condition only it allowed to take the credit of 100% for first financial year.

[Former Member]

k 5n i got your point,

but 50% IN EXCISE & 100% CENVAT CREDIT taken into account, is it wright and this process is correct and if this process is correct give me some tips or explain me completely regarding 50% in excise & 100% cenvat credit taken into account so that it will be helpfull

Regards,

Manjunath

[former_member329706]

For ex:In your asset purchasing if the condition involved are such as

1.CVD

2.Cess on CVD

3.Sec cess on CVD &

4.AED

The first three condition can only be avialed cenvat credit for 50% in first financial were as AED can be avialed for 100%.This can the excise only the system automatically considered the AED as 100 % once the excise is posted and other value as 50% you can check in J1IEX trans for the same.

[Former Member]

I checked in J_1iex but here also AED is showing 50%

[former_member329706]

What is J_1iex?

Check in J1IEX trns or in tables J_1IEXCDTL,J_1IEXCHDR

[Former Member]

i checked in j1iex only we have total duty, credit availed & credit due

For AED

In total duty it is 184,305.00

In credit availed it is 92,152.50

In credit due it is 92,152.50

Regards,

Manjax

[former_member329706]

Then refer the below oss notes it may help you.

Note 910681, Note 934265

[Former Member]

I have referred this notes 943767, 910681 & 964190,

I am informing to my excise & finance department regarding 100% cenvat credit should be taken in first financial year for capital goods for AED, but no one are believing, now they want 50% cenvat credit in first year & other 50% in next year but now problem is in excise 50% credit is taken but in finance GL account it has taken 100%,so what is the solution for 50% credit in accounting

[former_member329706]

Better Raise a Note to SAP and Go head as per the suggestion.

[Former Member]

Thanks a lot, even i was thinking to raise SAP note, so i am closing this issue once again thanks

Regards,

Manjunath

[former_member329706]

You can close the thread through left side radio button