Financial Postings for Claimable taxes

This functionality is specific for India.

Financial postings for claimable taxes are made for each tax registration number or for each ECC number. Postings are made for capital and non-capital items, separately. Use the Accounts Payable module in the Financials to process the updated claimable taxes. In the Post Non-Expensed Tax Details (tfacp9235m00l) session, click Generate Transactions button to generate ledger accounts for the selected finance company.

The ledger accounts are defined for each excise tax code in the Posting Data for Tax Codes (tfgld0171s000) session.

When the Item Category is set to Non-Capital, in the Item Data for Indian Localization (tcibd9137m00l) session, the financial postings for the claimable taxes are as follows:

Debit / Credit	Ledger account	Amount
Debit	Dummy	INR 0
Debit	Purchase tax (defined for the selected tax code)	INR 10
Credit	Purchase tax clearing	INR 10

When the Item Category is set to Capital, in the Item Data for Indian Localization (tcibd9137m00l) session, the tax is calculated, based on the CENVAT percentage defined in the India Localization Parameters (tccom9136m00l) session. For example, the percentage defined is 50 per cent, the financial posting for the claimable taxes are as follows:

Debit / Credit	Ledger account	Amount
Debit	Dummy	INR 0
Debit	Purchase tax (defined for the selected tax code)	INR 5
Debit	Deferred account for capital goods	INR 5
Credit	Purchase tax clearing	INR 10

If the goods are received in a RG 23 D warehouse, the receipts are called RG23 D receipts. The postings for the claimable taxes are as follows:

Debit / Credit	Ledger account	Amount
Debit	CENVAT Distribution	INR 10
Credit	Purchase tax clearing	INR 10

Note

Separate tax code has to be maintained for RG 23 D receipts.