Additional Duty of Custom (ADC) in Domestic Purchase

Dear Experts,
When we purchase import material from domestic Market, the vendor will pass on his CVD, E Cess, SHE Cess and Additional Custom Duty to us for which we will get CENVAT Credit. But these duties we will not know at the time of creating PO.
For the above scenario we are creating the PO for Gross Amount and we are maintaining all taxes @ 0%. At the time of capturing the Excise Invoice we need to enter actual duties paid by vendor but system is not allowing to enter any amounts.
This can achieve by clicking MRP indicator in Miscellaneous Tab, but there is no such indicator at the time of capturing, the same is available in change mode of excise invoice.
For above said Additional Custom Duty we will get 100% credit in the current year for Capital Goods as well as input Materials. But the issue is while posting Excise; system is taking the credit only 50% instead of 100% for Capital Goods. The same is working fine in Import Cycle. How do we achieve this?
For the information we are using ECC6 and TAXINN procedure.
Thanks in Advance
Regards
Ratnakar

Dear,
U r doing the wrong practice
u need to create the condition types for the CVD (they are total seven condition types)
u need to manualy change the CVD amount at the time of GR.Again GR is done after the MIRO.
there is lot of configuration requied as far as CIN is concern.
Better u read the SAP Help or search for the SAP notes for configuration
regards,
SNB

Similar Messages

  • ADC for domestic purchase

    Hi
    I need help regarding the scenario described below -
    my vendor imports a material and passes the Additional duty on customs (ADC) to us. we need to take credit for the ADC paid. however i am finding it difficult to approach the problem. there is a note by SAP for the same but it is not very clear too. can anyone who has faced a similar issue help me out.
    thanks in advance

    HI
    Treat this case as dealer case.
    What exactly you could not understand in the SAP note?
    did u check notes 910681,964190,

  • Additional duty of custom in domestic purchase

    Hi Friends,
    My Client purchases import material in domestic market also. So at the time of purchasing this material client pays ADC to the vendor.
    So in domestic pricing i want to maintain this condition of ADC.
    I want to clear following points in this regard:-
    *1. To create this ADC condition type which condition should i refer.
    2. This ADC amount is claimable and its value is debited into BED register how can i do this*
    Waiting for your response !!
    Regards
    Vivek

    Hi,
    Refer SAPNote 964190 - ADC on domestic purchase of imported goods
    This occurs in case if a trader will pass on Additional duty of Customs paid while importing the goods. In case of capital goods, the credit for ADC can be fully availed.The credit for this ADC can be availed.
    Configurations:
    Create a new condition for ADC(JADC) by referring to the attachement in SPRO -> Materials management -> Purchasing -> Conditions -> Define Price Determination Process -> Define Condition Types. Give the short text as "ADC in Pricing".
    Add this condition type (JADC) to the pricing procedure at SPRO -> Materials management -> Purchasing -> Conditions -> Define Price Determination Process -> Define Calculation Schema. Set the SubTotal as 2 for this condition type(JADC). No ActKy is required.
    JEXC shall be used for countervailing duty and ECS amount need not be entered in the pricing procedure.Only ADC amount will be entered against
    this new condition type(JADC).
    1. The Excise Registration Is Liable to AED.i.e. In the transaction SM30, for Table / View:J_1IREGSET, AED must be checked.
    2. AED% is NOT required to be maintained J1ID for that material.
    3. The AED(Additional excise duty)condition in the tax code has to be active if sub-routine based tax procedure(TAXINJ) is being used.
    4. For  ADC, either the setoff or inventory exists.Both conditions cannot exist simultaneously.
    5. The condition record for AED has to exist (in transaction FV12) if  condition based tax procedure(TAXINN) is being used.
    Refer to the attached document 'J_1I4_GET_MANUAL_EXCISE.zip' for changing the import and export parameters.
    Add the parameters listed in the document to respective function modules.
    Procedure to add new parameters:
    Run transaction SE37, enter the function module name as J_1I4_GET_MANUAL_EXCISE and click on 'Change' button. To add import parameters, click on 'Import' tab, else to add export parameter click on18.03.2008 Page 2 of   3 Note 964190 - ADC on domestic purchase of imported goods
    'Export' tab. Add new parameters according to the details given in the attached document. Save and activate the changes.
    Apply the code corrections once the parameters have been added.

  • ADC for Domestic Purchase not flowing in MIRO for particular MIGO Document

    Hello Experts,
        We've a scenario in which we pay ADC to domestic vendor. The procedure we follow is as below:
              1. Condition record for JAOP with 0% rate maintained in FV12.
              2. PO created with JMOP 10%, 2% ECS, 1% SECS & 4% VAT.
              3. During MIGO (also excise invoice capture), AED value is maintained
              4. After J1IEX, at the time of MIRO this ADC along with other duties flows in simulation
        Now in my case, there are number of GR documents for which MIRO is performed, but for particular GR, ADC is not flowing in MIRO and also excise duty is incorrect, it's not flowing from GR.
       So what is the probable solution for this, I've already checked MIGO & excise invoice documents & found to be ok.
    Thanks in advance
            Amit

    Hi,
    Have you maintained material price including AED price??
    If yes then check whether you have maintained JAX1-100% or not?
    I think this should be treated as a dealer purchase as you are maintaining 0% amount for JAOP.
    Regards,
    Piyush

  • Depot Plant- not to transfer additional duty to customer

    Hi,
    After making GRN for material we receive in depot plant (Plant -0100) we captures duties credit i. e. CVD (BED), Edu Cess, S & H Edu Cess & Additional duty (through J1IG) & pass it on duties to customer through Sale Invoice (J1IJ). But now onwards, We would not capture Additional duty & pass on to the customer in Sale Invoice. (We will only Pass CVD & its Education Cess) So, when we will make GRN then this Additional duty amount should go to material cost as it happens in Basic Custom Duty & its Edu Cess.
    And also inform us that we are having stock of material to sell. In this stock, we have already captured Additional duty credit. It means GRN & Capturing (J1ig)  is already done with Additional duty. But, In Sales Invoice we don't want to pass on credit of this captured Additional duty.
    And all this captured Additional duty should be moved to material cost. So, tell us to how should we process for this.
    please let me know
    Obulesu

    Hi,
    You didn't mention the transaction you are looking for your user exit. Well if you are looking for a scenario like this then you have to find a Screen exit for that transaction and modify the desired screen in SE51 with your subscreen and your logic will be a part of the Exit program that called with the Screen exit.
    It will be much more clarifed if you tell me the transaction your exit will work with.
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  • Additonal Customs ADC on Domestic Procurement

    Dear All,
    I checked the SAP note: 964190 which is related to the ADC scenario on domestic purchase of Imported goods.
    Please explain me what is use of the following points in this scenario
    1. What will be effect in the AED tax condition in the above scenario when we enter the ADC value in MM Item conditions in PO (If the tax procedure is TAXINJ)
    2. What is the effect of maintaining Sub total as 2 for the JADC condition in the MM Calculation Schema as per the SAP note esp.incase of TAXINJ ?
    3. Whether the AED values which we have entered in the MM Conditions against the JADC conditions will automatically flow to J1IEX or MIGO when we do Excise invoice postings?
    Thanks & Regards,

    Dear Kunal,
    Thanks a lot for your time & valuable reply.
    But still my question is not answered fully.
    I will explain the same with a scenario.
    As I mentioned above I am using TAXINJ & when I create a domestic PO I am entering the ADC % or value in the MM item conditions ADC condition type having subtotal as 2 & also I am selecting a tax code with AED condition but without any percentage since I will know the ADC % only @ the time of creating of PO hence I am entering it in the MM item conditions. Now when I do J1IEX whether the AED rate which I have given in the MM item conditions will flow automatically even though I didnt maintain anything against the AED condition in my tax code ?
    Hope its clear.
    Thanks & Regards,

  • ADC on domestic purchase of imported goods

    Hi Experts,
    This is regarding the ADC applicable wherein if imported material in procured from domestic market.Dealer passes on CVD and ADC part to maufacturer at the time of purchase so to map this scenario i am following the instruction mentioned in the SAP NOTE 964190.
    I have introduced JADC condition in MM pricing as per instruction.As per note we will refer JEXC condition as CVD condition and its value will go in excise duty GL account through TAXINN customizing setting
    .*Now my query is what condition to be put in TAXINN to pass on value of JADC and where should i maintain GL code for ADC in the system*.
    Kindly share if anybody has done configuration related to this scenario
    Thanks in advance
    Regards
    Vivek

    Hi George,
    I am referring your mentioned notes, only apprehension is regarding condition type AED which in mentioned in SAP note as it should be activated in tax code.
    This AED condition i am not able to find in TAXINN secondly its also not mentioned how to maintain this condition in the TAXINN.
    Seeking your advice on this
    Regards
    Vivek

  • Cenvat credit of additional duty of customs

    As per importer    price of 10 units
    Basic       100
    Excise       10
    Ecess         2
    Shecess     1
    AED            4.52
    We bought   5 units from him   we treat it as a case where tax code inclusive of all duties where a backward calculation is used in conditions in Purchase order.
    problem is that we are purchasing a capital item.
    duties cenvat crdit available for different duties other than AED  is 50 this year and 50 % next year. For AED 100 % cenvar redit should be available but that is not happening.
    what I saw in one of SAP notes is to make a MM condition ZADC and activate AED in tax code but that doest not help to get AED credit avilable 100 %.
    other SAP note 943767  tells a different steps for ADC.
    what should we do in this case i.e what all sap notes should be checked for in system so that we can get 100 cenvat credit of AED passed on by first stage dealer of Imported goods in india using a backward calculation situation.

    Hi
    What pack level are u  on
    and if u using ECC 5 and Above , than i dont think u have to use any sap note.
    In po u will have to use tax code that is have 0 % for your AED condition and 100% for AED condition total.
    just like bed or ecess condition.
    When u capture Excise duty for first stage delear haveing ADC , u will have to put IP in Addition excise tab near GRPO.
    and in item leve material type should be other than raw material , Assect or consumables or tools.
    hope u have configured IP for account determination
    Onlt the trick to get 100% cenvat credit for First stage delar is to Put IP in front of GRPO and just check if u are able to c CVD indicator  if it is there u have to tick that too.
    hope this solves your issue

  • Availment of 50% cenvat credit on ADC (add.duty of customs) during imports

    Dear All,
                 I have a client requirement who wants to avail only 50% of ADC (additional duty of customs) during imports.
    I observed during debugging that if I manually change the sub-transation type from IP to blank, the system posts 50% of ADC amount to AED G/L Account and rest of the amount to Cenvat on-hold account.
    I wanted to ask the experts if there is any enhancement point in the program or any user exit using which I can achieve my task. If not through userexit, kindly suggest me any work-around.
    Note: The above requirement is against the legal changes that are brought in during 2006-2007 budget change that unlike the CVD components, ADC can be availed 100% during the same fiscal year and therefore I request you not to suggest me to get the same clarified from the client.
    Thanks
    Guru Prasad

    Check this answered links [import capital AED 50 %  |Re: import capital AED 50 %;
    [Capital Procurement in SAP|http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f?quicklink=index&overridelayout=true]

  • Domestic Purchase of imported goods issue

    Hi,
       we have a scenario where imported goods are purchased from a trader in Bombay. The vendor passes the client the  ADC(additional duty of customs) and CVD what he has paid while purchasing goods from germany.
    the client takes the cenavt credit of ADC and CVD. I have maintained the condition types for ADC as JADC and using jexc to capture to capture CVD in PO pricing procedure.
    my issue is that these values are getting loading in stock account. the requirement is to take the cenvat credit of ADC and CVD.
    please help what settings are required to be done so that ADC and CVD doesnot get loaded in stock account.
    regards
    Ajay

    Hi Ajay,
    If you do not want any condition to be loaded to Material account than make an account key and like FR1 and assign one GL for that account in OBYC. This account key you need to define in your pricing Procedure.
    Just exploer above suggestion.
    Thanks
    Sanjay

  • Import duty is shown as CENVAT Availed Additional duty in Cenvat Register

    Hi all,
    Why Import duty is shown as CENVAT Availed Additional duty in Cenvat Register? ofourse it is going in to right registers at the time of posting excise invoice. but why in register it is shown as addnl duty?
    Thanks in advance,
    Girish

    hi,
    u mean 4% additional duty of customs right ?
    it should come under the column of ADC availed
    if it is there then there is no problem it is correct.
    regards,
    sujit

  • Difference between Additional Excise duty and Additional Duty on imports

    Dear All,
    I want to know the difference between additional excise duty on domestic procurement and additional duty on imported material, mainly in context of the credit availing. How much credit we can avail if we procure a capital material (domestic and imported).
    Regards,
    Ashish

    Dear,
    Excise duty is a duty on production or manufacture of goods, It is levied on manufacture of goods and the liability to pay excise duty arises immediately on manufacture or production of goods.
    Additional duty is levied as per custom tarff act and is equal to excise duty levied on a LIKE product manufactured or produced in India.
    Sometimes, foreign sellers abroad may export to India goods at below the amounts charged by them in their domestic markets in order to capture Indian markets to the detriment of Indian Industry.
    Please check: http://help.sap.com/bp_bblibrary/600/html/J84_EN_IN.htm
    http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f?quicklink=index&overridelayout=true
    Regards,
    Syed Hussain.

  • How to do custom miro for import purchase ?

    Hi All
    I want to know what is the process for doing custom miro for import purchase, In my case for some of the excise elements we get credit, so while doing miro how to take care of this ?
    Thanks Rashid.

    Hi,
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  • Unable to capture & post the bill of entry for cvd & additional duty

    Dear cons
    In case of Import Pos CVD and additional duty is getting inventorised and GR/IR-CVD is getting credited as the time of GR.Whereas CVD and additional duty is a cenvatable tax and should be accounted at the time of Excise posting.Also we are not able to capture and post the Bill of entry for CVD and Additional duty.

    Hi..........
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  • AED for domestic purchase

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