Input Credit on Capital Purchase

This activity allow you to set and view the details of the frequency and the number of instalments in which the tax paid on capital purchases can be taken as input credits for set off with the tax liability. The frequency and the number of instalments can be set for a Tax type, Tax Community and Tax Region combination.

Select the “Input Credit on Capital Purchase” link under the “Tax Setup” Business component.

The ‘Input Credit on Capital Purchases’ page appears.

Enter details in the following fields:

Tax Type	Use the drop-down list box to select the Tax Type code for which you require to set / view the installment details. Tax Types for which ‘Staggered Credit of Tax on Capital Goods Purchase’ parameter is set to ‘Yes’ would be available for selection. The first applicable tax type is displayed in the Tax Type list box as default on launch of the screen
Tax Community	Use the drop-down list box to select the Tax Community to make the combination for which you need to set / view the installment details. On selecting Tax Type the Tax Community drop-down lists box populates with the codes of the communities connected to the Tax Type. Tax community refers to the government authority that administers the tax laws.
Tax Region	Use the drop-down list box to select the tax region to make the combination for which you need to set / view the installment details. On selecting the Tax type and the Tax Community, the tax region drop-down list box populated with the codes of the tax regions connected to the tax type and tax community combination. Region refers to the jurisdiction where the tax declaration is required to be made.

Click “Get Details” pushbutton to see the frequency and installment details already stored for the Tax type, Tax Community and Tax Region Combination.

The system displays details in the following fields relating to the tax type, tax community and tax region combination selected by you if details are available:

Modify/Enter the following fields to set frequency and instalment details:

Frequency	Use the drop-down list box to select the frequency in which the tax paid on capital purchases need to be taken as input credit. You can select from ‘Declaration Period’, ‘Declaration Year’ and ‘Monthly’ options.
No. of Instalments for Availing Credit	Enter the frequency in which the tax paid on capital purchases need to be taken as input credit. You can select from ‘Declaration Period’, ‘Declaration Year’ and ‘Monthly’ options.

The system displays the following in the “Instalment Details” multiline:

Instalment Number

The number of Instalments specified will be displayed in order.

Enter the following in the “Instalment Details” multiline:

Instalment Percentage

When the Percentage of input credit varies from instalment to instalment, the varied percentage can be given here. The system by default divide the 100% with No. of instalments.

Click the “Save” pushbutton to save the Frequency and the Instalment details for the Tax type, Tax Community and Tax Region combination.