Tax variation while considering custom duty
Hi
Trader imports an item at Rs100, 25Rs is custom duty, so he sells the client at Rs 125 but Excise structure is not valid on unit price as Rs 125, it is valid on price Rs 100.client has to apply tax on Rs100.along with this additional duty is levied which is to be added somewhere in order to calculate vat according to this additional duty.below is example and the tax is combination of :Excise+VAT.
Eg: 125 Rs is cost price of client
Bed is 10% on 100Rs
Cess is 2% on 100Rs
Hcess is 1% on 100Rs
Additional duty of Rs4 to be added in Bed and then according to this Vat is calculated on the basis of
4% on (125BedCessHcessAdditional duty)
Please suggest me where to use and how to use in system?
Thanks
Hi Krishna,
For excisable Items you have the option to calculate the excise duty on the assesable value. From the form settings you will be able to bring the column in the excise invoice and the A/R invoice. In the tax code you are creating put in this formulae if the Assesable Value > 0 then ......( put the calculations). Now while posting the document put the " Unit Price as 125 and the assesable value as 100. Then the system calculates the tax amout on Rs.100. So your perpose will be done.
But let me add one thing more to this, As per the norms the excise can be charged on the assesable value ( I mean any price other than the sales price) but vat has to be charged on the sales unit price. This is a ststutory requirement. So if the client says that the vat will also be calculated on te Rs 100 then though you can do that in that system by formulae modification fo tax code but this will not be legally correct. So just review the vat calculation and and get confirmed.
Regards,
Raj
Edited by: debraj bhattacharyya on Jan 5, 2009 5:49 PM
Similar Messages
-
Clear Withholding tax data while posting customer invoice
Gurus,
I am trying to post Customer invoice document using FB01 transaction.
If the customer has with holding tax information available in Customer Master the corresponding information is getting posted into invoice document.
Is there any user exit, enhancement or substitution available to clear this with holding tax data.
Please do share if any code examples on this issue.
Appreciate your quick response.
Thanks,
SuneelDear AMD008
were you maintain properly in OB40 MWS (out put tax) relevant GL Account
Note: are you using NEW GL please conform me
Regards
shankar -
Tax Error while posting Customer Invoice
Hello Everyone,
When I try to post a customer invoice using one of the default tax code (eg. 1O - output tax 10%), during simulation the system gives following error message with the item list as below: "Error message still exist - see error log". The error log shows following description - Msg Type E : Item 003 must be corrected.
Itm PK Account Account short text Assignment Tx Amount
1 01 100253 DDS SERVICES 1O 8.000,00
2 50 800000 Sales revenues - dom 1O 7.272,73-
3 50 175000 Output tax 1O 727,27-
Can anyone plz help me out as to why am I getting this error and what is the solution to it?
Thanks,
AMDDear AMD008
were you maintain properly in OB40 MWS (out put tax) relevant GL Account
Note: are you using NEW GL please conform me
Regards
shankar -
FI-AP Tax Code not considering the excise duty while calcuating the VAT
Sub: A/P Tax Code not considering the excise duty while calcuating the VAT
Hi Frnds.
I have a typical problem.
Till now we are using a "W6" as a tax code, where Excise-10%, Ed Cess-2%, SEd Cess-1% and VAT-4%.
But as the Govt. rules changed I have created a new tax code "W8" by copying the W6 and modified the VAT to 5% by changing the condition record JVRD.
The new tax code is not calculating VAT part correctly. It is taxing into consideration Invoice Base value, Ed Cess & SEd Cess (Omiting the Excise Duty).
I have checked my Tax Procedure, there everything is fine. Even my old tax code "W6" is working correctly.
Let me know where the error lies.
Here is the scenario
00. Tax code - W6 - W8 - Current Staus of W8
01. Invoice Base - 355181 - 351798 - 353324 (by SAP Document Simulation View)
02. Excise @ 10% on 01. - 35518 - 35180 - 35332
03. Ed Cess @ 2% on 01. - 710 - 704 - 707
04. SEd Cess @ 1% on 01. - 355 - 352 - 353
05. VAT @ 4% on (010203+04) - 15671 - 0 - 0
05. VAT @ 5% on (010203+04) - 0 - 19401 - 0
05. VAT @ 5% on (010304) - 0 - 0 - 17719
INVOICE TOTAL VALUE - 407435 - 407435 - 407435
Pls. let me know how to come over the issue.
By the way I am using the above tax code at FB60 transaction code.
Regards
Krishna
Edited by: Gopi Krishna Gutti on Oct 17, 2011 10:18 AMHi Vivek
Acutually we planned to implement SAP - FI & MM Modules only, and all the configuration is done in the system, but at the final stage our management is not satisfied with MM area, so finally we have gone live with only FI Moudle.
By the way thankyou for the reply. I have maintained 100% in JMX1 for the new tax code and it is working fine.
I will give you full points.
Once again thanks a lot.
Regards
Krishna -
Hi,
How To define customs duty tax code. The code breakup goes as follows
Customs Duty on Assessable value = 10%
CVD on (Assessable value + 10% Custom Duty) = 10%
Edu Cess on CVD = 2%
HSE Cess on CVD = 1%
Edu Cess on Customs Duty = 2%
HSE Cess on Customs Duty = 1%
Additional Duty (on Imports) = 4% (on total value i.e. assessable value + all above)
Regards,
Mansoor.Hi Mirza....
If you know how to define a normal tax code then you can create custom duty tax code also. You need to know on which amount how much %age of tax is applied.
Say, Custom duty has 7 main Components.
Customs Duty on Assessable value = 10%
CVD on (Assessable value + 10% Custom Duty) = 10%
Edu Cess on CVD = 2%
HSE Cess on CVD = 1%
Edu Cess on Customs Duty = 2%
HSE Cess on Customs Duty = 1%
Additional Duty (on Imports) = 4%
In Order to define tax code please refer this thread.
Re: Multiples service tax for a single item
Regards,
Rahul -
Tax screen while customer creation
Hi,
While creating customer master we get to see tax screen in Sles Data under Billing tab.
I am not able to see it in dev system.
Which are the settings to look for so that I could see this screenfor tax which appears just below account assignment group field.
I checked OVK3/4/6 but could not find anything.
Request you to suggest me something.
Thx in advance
Best Regards,
manOODear sapjuly
Check in IMG - Financial Accounting -> Accounts Receivable and Accounts Payable -> Customer Accounts -> Master Data -> Preparations for Creating Customer Master Data -> Define Account Groups with Screen Layout (Customers).
Select your account group, tick the lens on top and double click on "<i>Sales data</i>" under "<i>Field Status</i>" tab. Further once again double click "<i>Billing</i>". Now you can see there will be 4 options defined for each field.
Most probably, the field "Taxes" would have been selected for "<i>Supress</i>". Change it to "<i>Req.Entry</i>".
Thanks
G. Lakshmipathi -
Addiitonal Custom Duty : JADC
Hi ,
Our Import pricing schema has following two condition types for ADDITIONAL Custom duty
Step Condn Type and Desc from to A/c key Accural
220 JADC Addi. Duty Custom% 215 215 ZCA FR4
221 ZADC Add DtyCust-Non CENV 215 215 ZCA FR4
In case we are using JADC condition type then system is treating amount of this condition as CENVATABLE and not loading this value on MATERIAL
While in case ZADC is being used , it is being treated as CENVATABLE amount.
Therefore wondering what is the setting for that , by which we can control a Import condition from being CENVATABLE ??
Pls note we are using CONDITION based tax procedure .....
Regards
ShreyHello,
you have the two additional term
1. Additional excise duty(AED): this will be configured in tax procedure like in TAXINN/TAXINJ, CIN always comes with prec-onfigured with AED.
using OB40--> u have to assign G/L against Tax code.
using FV11/XK11, you have maintainthe tax condition records which will be using by procurement dept.
2. Additional custom duty : this will be configured in Import pricing procedure of MM, this will be used to take credit for Additional custom duty paid to custom dept. along with CVD.
in M/06, you have to configure this condition type .and in m/08 you have to use this condition type in Import pricing procedure of MM.
you please co-ordinate with any FI/MM consultant for this requirement config.
And activate 4% in Tax code
Regards
Mahesh -
VAT on Customs duty & surcharge
Hi all,
This is for Import Pricing, I have a reuirement to have VAT on Customs duty paid. pricing is as given below.
ZOA1 Customs Duty on CIF
ZA01 Surcharge on Duty
ZA00 Port Authority Levy on CIF
Total Duty Paid
VAT on above Total Duty Paid is required.
which is the condition to be used for VAT & how it is interlinked with FI, pls advise.
Regards
AshokHi,
Taxes may not be calculated as you described by NAVS condition. NAVS condition only carry over the non-deductible portion of total tax amount calculated by a Tax Code on the net price of a item.
For this scenario, already the pricing procedure is done with customs duty related condition types. Create a VAT Tax Code with the % rate as required. As per business scenario you will be posting two seperate invoices one for material prices and another for customs duties. While posting invoice for material prices use a zero tax code as there is no tax applicable on this. While posting invoice for customs duties use VAT Tax Code which you defined. System will calculate VAT on the each of the customs duty componet.
Hope this sacrifices your requirement.
regards,
Mallik -
Dear All,
I have the following scenario:
The materials imported are being exported to other countries. Those materials which are imported should be exported within 180 days inorder to get refund of customs duty from the customs.
Initially while the material comes to port, the duty amount is paid to the customs as deposit (not to be inventorised to the material value). If the material has not been exported, then the amount from deposit account should be transferred to Customs duty account (P & L account) and should be added to the material value.
My question is: 1. How to capture the duty amount to the deposit account in PO
2. How to add the customs duty to the material value if the material is not been exported.
Please suggest.
Regards,
S.Suresh
[email protected]Hi,
Since you have included ADC as a pricing component in MM application.
system would inventorise all the cost . So it is not possible.
Taxes and delivery cost's if specified as a part of MM condition would be inventorised or posted to expense account on GR.
If you want to avail credit,i.e post to a differnt GL and set off later, then you would have to use the tax application CIN.
Or try post the transaction on FI side.
Harish. -
While creating customer master i am getting the Communication error
Hi experts,
while creating customer master i am getting the Communication error with the external tax system (VERTEX_MS0018) please tellme how to solve this issue
Regards,
Anil prasad
Edited by: prasadanil on Sep 16, 2011 12:52 PMhI Prasad,
It seems you are maintaining the address data for a country with jurisdiction code. Different external control systems can behave in different ways.
1. You entered a jurisdiction code that matches the postal code but not the city (possibly due to a typo).
a) Behavior when you use Taxware: There is no message and data can be saved.
b) Behavior when you use Vertex: Due to the incorrect city, no comparison jurisdiction code can be determined and message TAX_TXJCD861 is issued with a text from the vertex system that may be unintelligible.
2. You do not enter a jurisdiction code, but you do enter a postal code and a city that does not match the code (possibly due to a typo).
a) For Taxware: If the jurisdiction code could not be explicitly determined, a selection dialog box containing the relevant tax jurisdiction codes for the postal code appears. You select one. This and the corresponding city are transferred.
b) For Vertex: The TAX_TXJCD861 message is issued (behavior as in 1b). Other terms TAX_TXJCD861, TAX_TXJCD101, TAX_TXJCD107.
For resolving this issue, you can check SAP Note 677850 - Address data: Check/new determination jurisdiction code.
Hope you will resolve the above issue with these inputs.
Let me know if you need any further details.
Ravi. -
Import Trader - Additional customs duty
Hi Experts,
Please guide how to capture additional customs duty from import trader.
Following settings have been done in the system.
Created condition type JADC. Added this condition type in local pricing procedure using tcode M/08.
Tax code created and condition records maintained. PO created with manual excise duty JEXC and additional customs duty also entered manually in JADC.
My query is addtional duty value is not getting captured in goods receipt from PO. Rest all duties like BED, ECS and SECESS are appearing automatically. (Also referred SAP Note No. 964190 and related other notes.)
Thanks
SAP MM USERHi,
Same requirement we addressed like this.
Create condition records bed, ecess, shcess with 0% and set off conditions with 100%. Create PO. In the PO excise values will be shown as 0 value. At the time of capture PO for excise go to miscellaneous tab and select MRP indicator. And in item level change the base value and enter the duty values manually for BED, AED(additional customs duty), Ecss, Hcess. (Base values should be recalculated ie. PO value - excise duties = Base value).
Post the MIGO and refer excise invoice. U can see all the above bed, aed, ecess, hecess values will display. IF AED value is not showing goto spro-->logistic general........determine excise -->Maintain excise defaults - enter JADC in the column ADC condition type A/P. (This JADC condition need not to be maintained in TAXINN pricing procedure). (Maintain gl account for AED in gl account assignments against GRPO transaction type)
Post Excise invoice.
In MIRO if u simulate entries will be
vendor cr.
Gr/IR dr
Cenvat clearing bed dr,
cenvat clearing ecess dr,
cenvat clearing hecess
Goto Gl account tab and give cenvat clearing a/c dr and amount (AED)
Post the MIRO document.
REgards,
Rajeswari -
Credit of Add Custom Duty in capital purchases at the time of J1iex
Hello,
As you all are aware that Indian law allows taking the 100 % credit of additional customs duty in case of capital procurement and only 50 % credit of CVD, Cess on CVD and S Ces s on CVD at the time of J1iex in first year itself
We are facing the problem in PRD client that, we are not able to take the 100 % credit of Additional Customs duty at the time of posting the J1iex. System considering only 50 % for all duties.
I have tried the same scnerio in development client and observed that it is working ok there.
Request you all to give your inputs on the above.
Thanks,
Vikas RanderCheck 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] -
MIRO of Custom duty in case of Assets
Dear Sir,
While posting of MIRO for custom duty i(Planned delivery cost(n account assigned assets for non valuated material sytem is posting value as
Vendor account credit
Asset account debit
my asset is debited by total custom duty including CVD ,ECS and SEcess. but I am taking credit of it in excise.
At the time of taking 'CVD credit system is passing following entries
Cenvat clearing Cr
RG23C BED DR
RG23CECS DR
Cenvat on hold DR
Please advice how my cenvat clearing account is nullify
Best regards,
Jeewan OberoiFonzie,
You would add the Custom Trigger server behavior. Under the Developer Toolbox>Forms>Custom Trigger.
The Custom Trigger Wizard has 2 tabs, Basic and Advanced. I usually leave the box in the basic tab blank. You can add your php code here, but I prefer to add my Custom Trigger code to the Dreamweaver Code View directly.
The Advanced Tab allows you to name your Trigger/function and you can set the execution order. Trigger's are registered to transactions Update, Insert, and/or Delete. You specify wether you want the Trigger to execute BEFORE or AFTER the Update/Insert/Delete transaction. By default this is set to AFTER.
Priority allows you to control execution order of the transactions and triggers. You can have multiple triggers and control the order they execute.
So I usually start the Custom Trigger Wizard and go right to the Advanced tab. I name my Trigger, and set the execution order. Then I close the Wizard. Then I go to the Dreamweaver Code View, and you will see something like this:
//start Trigger_Custom trigger
function Trigger_Custom(&$tNG) {
//end Trigger_Custom trigger
Add your code between the { } and add
header("Location: error_page.php");
exit;
for the redirecting.
Shane -
Doubts in Accounting scenario of Custom Duty in SAP
hi,
can anybody give me the journal entries for material and capital goods being imported and duty paid and Cenvat taken in sap and its relavance with MM.(considering CIN)
also i want to clarify my doubts regarding the custom duty(10%+Custom cess) which is a cost to company its effects in SAP.(whether charged to inventory).
thanks in advance.
regards,
AnandHi,
>>><i>when in SLD .... you have buttons for creation of "new product" and "new software version component" ..... when SLD is set to show all the products/Software version components automatically by SAP.... what is the need of these two buttons?</i>
SLD shows all the products and SWCV of SAP. The button you have specified allow us to create our own software component versions and products.
One of the reasons as to why we create software component versions,is for modularity.
Moreover, each of the namespaces under a SWCV has some commonality.
>>><i>when my XI server is connected to R/3 systems i am not able to see this product (R/3 system) in SLD .... but i am able to import the IDOC/RFC to XI server.... why is that happening?</i>
You will find an entry for R/3 in the technical system list.
>>><i>Well! it also said by one of our gurus that R/3 systems should be defined in SLD of XI to be seen in SLD of XI... as your basis guy is quite busy to answer ... can some one me help to answer my curiousity?</i>
Yes! If this is not done, how will xi know where the R/3 system is? You will have to tell xi, that r/3 is at this IP right? This is what you do in SLD.
Regards,
Smitha. -
Wrong Calculation of Custom Duty for Import PO
Dear Experts,
We have made one PO for Import and after that we have made custom duty for the same PO and then we have captured the excise invoice through J1iex T.code. But when we have posted the MIGO it is calculating wrong custom duty that particular G/l. In this particular Vendor all other PO is ok but in one PO it is creating a problem
Regards,
Pankaj RanaHello Pankaj,
I believe our MM colleagues could better help you (or consultant from component XX-CSC-IN-MM), but I'll try to as well.
These notes seem promising
1319544 Validation for commercial invoice MIGO ref note : 1303077
1303077 Validation for commercial invoice entered in MIGO for import
1368698 No validation for reversed Commercial Invoice in J1IEX
1345945 MIGO doesn't consider Year to pick Commercial Invoice Number
Hope this helps somehow.
Maybe you are looking for
-
Hi, everyone, I need help here. Apple MacBook Pro 13" early 2011 preinstall Lion version, EFI 2.2, Boot Camp 4.0. suddenly black screen in Windows 7 SP1 (black screen and also no sound at all, need to press power button to off). What happen?? Please
-
How can I update my Mac from OS X 10.5.8 to OS X 10.7?
I am trying to update my kids Mac so that they can get I tunes to work on a brand new Ipod touch and I must have atleast OS X 10.7 to get the Itunes update - how do I do this??
-
Error - "Message Interface does not exist in any software components"
HI This is an Idoc sender - SOAP receiver scenario. When I try to create the receiver determination, I get a warning message - " Message interface does not exist in any software components installed on this business system" I checked all the usual th
-
Firefox updated and my new page tiles are now gone how do I get them back?
I update Firefox, and in the process Norton became my automatic search engine and new page. I have tried everything but have not be able to revert back to the new page tiles. Can you help me resolve this problem? I have attached a photo of what my ne
-
Hi, I'm running web applications and there is performance issue is most probably caused by the fact that IE can not handle such amount of requests that are forwarded to the server at the same time. Data: On IE(10) – search variety 11- it takes a long