Tax Structure

Question

My client uses the following Tax structure
Non Exempted Projects
(Custom Duty@10% on (Assessable value) + BED@14% on (Assessable Value + Custom Duty) + BED EDU . Cess@2% on (BED) + BED EDU.CESS (S/H)@1% on (BED) + Custom Duty Edu. Cess@2% on (Custom duty + BED + BED EDU.CESS + BED EDU.CESS (S/H)) + Custom Duty Edu. Cess (S/H)@1% on (Custom duty + BED + BED EDU.CESS + BED EDU.CESS (S/H) + Additional Duty of Customs @4% on (Assessable Value+Custom duty + BED + BED EDU.CESS + BED EDU.CESS (S/H) + Custom Duty Edu. Cess + Custom Duty Edu. Cess (S/H)).
Note:  For Capital Goods & Resin the custom duty would be 7.5 % instead of 10 %.
Is it possible to maintain this in SAP B1?
Do I have need to create parameters? and formulas for this?
Regards
Shashi

Answer 1

Hi Shashi,
I suggest you to create a new Tax Type for CVD and let it be of the CENVAT Type as it is a duty and main purpose of making any Tax Type of CENVAT Type is to know how much Duty you have paid while purchasing so that you can Subtract that with your Sales Duty Amount.
Eg
Consider 3 Raw Materials where you have paid BED as follows while Purchasing.
Raw1 Rs 10
Raw2 Rs 5
Raw3 Rs 8
Total Rs 23
from these raw materials you while manufacture Finished Good Fin1 where BED is Calculated to Rs 45
here as you need to pay Rs 45 Duty amount to Govt, as it has come from selling your Finished Product you will only pay
45-23 =  22
and rest Rs 23 you will inform that you had paid that much of Duty amount while Purchasing the Raw Materials to produce that  finished product. these type as i know are usually termed as CENVAT type Tax.
As I'm not that well versed with Finance only know the basic, i would suggest for any further clarifications pls contact your financial consultant, as he would be able to explain better these matters.
I hope this info helps you out
regards,
Shreyas