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mejoradas de abastecimiento de agua potable

4.11 Proporción de la población con acceso a servicios de

This chapter contains the following topics: ■ Section 14.1, "Understanding Cenvat Credit"

■ Section 14.2, "Assigning Percentage of Cenvat Credit"

■ Section 14.3, "Offsetting Cenvat Credit and Calculating Duty Liability"

■ Section 14.4, "Generating the Entry Books of Duty Credits for Inputs and Capital Reports"

■ Section 14.5, "Setup Requirements for Cenvat Credit" ■ Section 14.6, "Offsetting Cenvat Credit Against Excise Tax" ■ Section 14.7, "Offsetting Cenvat Credit Against Service Tax"

■ Section 14.8, "Setup Requirements for Offsetting Cenvat Credit Against Excise Tax" ■ Section 14.9, "Setup Requirements for Offsetting Cenvat Credit Against Service

Tax"

See Also:

■ Setting Up Localizations for India ■ Understanding Excise Tax

14.1 Understanding Cenvat Credit

The credit that can be claimed by a manufacturer, producer of final products, or a provider of taxable services is called Cenvat credit. Cenvat credit can be applied against both excise and service taxes for these types of items:

■ Excise duty on a final product (for manufacturers or producers of final products only)

■ Inputs and capital goods, if they are removed or are being partially processed For these item types, you can apply the amount equal to the Cenvat credit to the tax payment

■ Service tax on any output services (for providers of taxable and exempted services only)

For this item type, you can apply Cenvat credit if you maintain separate accounts for the receipt, consumption, and inventory for the taxable service, and nontaxable services. If separate accounts are not maintained, only 20 percent of the credit can be applied for payment of service tax.

You use the Credit Redistribution process after you run both the purchase order and sales order cycles. The Credit Distribution program (P75I012) and the Credit

Distribution - Services program (P75I013) pass the amount and the account details to create a pair of credit and debit entries in the Account Ledger table (F0911) for the amounts being redistributed. The system generates and displays a batch number when the F0911 table entries are made.

Important: You generate general ledger entries for the taxes in the F0911 table only after you run the Sales Update program.

14.1.1 Cenvat Credit on Common Inputs

You might use common inputs in the manufacture of excisable goods as well as in the manufacture of nonexcisable goods. In some cases, you might not be able to track the issue of the common inputs based on its end use. In such circumstances, you can claim Cenvat credit on the entire consignment and can issue such inputs for the manufacture of nonexcisable goods. To claim Cenvat credit on the entire consignment, you must calculate the excise duty liability at 10 percent of the value of the goods, excluding sales tax.

To claim Cenvat credit:

1. Verify that the credit claimed during the procurement process are not off set.

2. Define a price adjustment so that the system calculates 10 percent on the value of the item excluding sales tax.

The system uses the price adjustment when you sell or transfer the goods.

14.2 Assigning Percentage of Cenvat Credit

This section provides an overview of the assignment of the percentage of Cenvat credit, and discusses how to assign the percentage of Cenvat credit to an item type.

14.2.1 Understanding the Assignment of the Percentage of Cenvat Credit

You use the Credit Distribution Percentage program (P75I011) to assign the percentage of Cenvat credit to an item type, such as CAP (capital goods) or INP (input). You can also use this program to:

■ Identify ways in which to recover amounts for a tax type.

■ Identify ways in which to recover the partial percentage of the Cenvat credit. ■ Move the credits for an item type from one tax type to another.

14.2.2 Forms Used to Assign the Percentage of Cenvat Credit

Form Name Form ID Navigation Usage

Work With Credit Distribution Percentage

W75I011A Excise System Setup (G75IEXC4), Credit Distribution Percentage

Review existing records for item types and their associated tax types.

14.2.3 Assigning the Percentage of Cenvat Credit to an Item Type

Access the Credit Distribution Percentage form.

Figure 14–1 Credit Distribution Percentage form

Model Year (YYYY)

Enter the model year of the appliance in the YYYY format.

Item Type

Enter a user-defined code from UDC table 75I/EA that identifies the type of item. Examples are:

AII: Account for Inputs

CII: Account for Capital goods

EXA: Expense Account

PLA: Personal Ledger Account

SRV: Accounts for Services

From Tax Type

Enter a user-defined code from UDC table 75I/GT that identifies the tax type. Values are:

AED: Additional Excise Duty

BED: Basic Excise Duty

Cess: Education Cess

CVD: Counter Veiling Duty

CVHC: HCess - CVD

CVDCS: Education Cess - CVD

FT: Freight for JST adj

INTR:INTR: Interest - TDS

OTHROther - TDS

Credit Distribution Percentage

W75I011B Click Add on the Work With Credit Distribution Percentage form.

Assign the percentage of Cenvat credit to an item type. Add or update records to transfer the credit of an item type from one tax type to another.

PF: Packaging & Forwarding

SED: Special Excise Duty

ST: Service Tax

STCS: Education Cess - ST

SUR: Surcharge

TCS: Tax Collected at Source

TDS: Tax Deducted at Source

TOT: Turn Over Tax

VAT: Value Added Tax

To Tax Type