Understanding How to Offset Cenvat Credit Against Service Tax
You use the Credit Distribution - Services program (P75I013) to offset Cenvat credit for excise and services. You also use this program to issue payments to the tax authority for any service tax liabilities after offsetting the liabilities against Cenvat credit from excise and services. You must pay the services from the Cenvat accounts for services, raw materials, and capital goods in accordance with the percentage defined in the Credit Distribution Percentage application, and then create an AP voucher in a specified order.
The service-to-excise transactions update the F75I013 table. After you issue payments for excise or services, the system displays the voucher number generated when issuing payments to the tax authorities.
The Credit Distribution - Services program passes amount and 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.