Non ITC Claimable Usage (VAT)

aps

Hi all,
I am not able to understand the meaning of the Non ITC Claimable Usage for VAT

As far as my understanding, In case we purchase Fuel ( with VAT 12.5% of tax) we have to reverse 4 % of it...does this Non ITC Claimable Usage % helps us to load (to the inventory value) the portion of VAT which can not be claimed as refund.
More over I am not aware about the Deferment period and Settlement Period.

Please explain if i a wrong....Document explaining the topic will be a great help

ssingla

I have not used the functionality but I am sure the details and usage of the ITC is defined in the feature instruction manual (Localization) issued along with the hotfix.

Search the partnersource for the same.

aps

thanx for the reply.....
the material available is confusing...as i have never came accross such terms in practical working...

pandusp167

Kindly note that Non ITC Claimable Usage for VAT is basically used while purchasing Capital Items, incase ITC allowed on a Capital Item is 50% this field should be filled-up with 50%, accordingly system will load 50% of the tax amount on to the Capital Item cost, remaining 50% will be available for ITC.

To answer your query on Deferment Period, ITC available should be devided into 10 installments for eg. on Capital Item 50% ITC is defferred in to 10Months period as per the state Deferment Period setup, system will prepare (criteria threshold) deferment period shedule for a particular transaction.

This schedule can be viewed from
Purchase Order --> Order --> Deferment Schedule

To print this Deferment Schedule :

Purchase Order --> Posting --> Print Deferment Schedule

Once the order is posted as Receive and Invoice system will create 10 Detailed Tax entries for each period.

Accordingly while calculating monthly returns this deferment schedule is used to calculate net tax liabiltiy.