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
Ashok

Hi,
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

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VAT on Custom duty

Hi all,
In TAXINN procedure VAT is calculate on Base value+Excise, but one of our client is required to calculate VAT on Base value + custom duty. He required this only for few import POs. Basically Custom duties are involved in pricing procedure and VAT condition is involved in tax calculation procedure.
Please help to resolve this problem..........

hi sandip
You need ABAP help ,who will write Routing for this
From your side you need to First Create same condition of custom duty in OBQ1
then insert this custom duty condition ( e.g . JBCD ) in Tax procedure just
before VAT condition type so that VAT will be calculated on inclusive of custom
than ABAP will create Routing , Assigen this Routing ( e.g. 950 ) to condition type in tax procedure in colum Alternative formula for condition base value
then in pricing procedure assigen same routing to same condition for Condition formula for alternative calculation type colum
As per your logic for calulation ABAP will write routing
this is the only way for such calculation
thanks

VAT calculation and Customs duty in Import Purchase China

Hi Friends,
I am configuring import pricing procedure for china.
The calculation is mentioned below...
Gross Price - 100
custom duty - 4 (paid to custom agent)
Vat - 17% on (Gross Price + Custom Duty). VAT is deductibleand paid to custom agent.
Please help on the above scenario.
Please find below my pricing procedure (since it is rollout, i cannot change the pricing procedure structure much). Please help me.
Thanks
Prabhu

Hi
I couldn't see your pricing procedure but Condition need to be defined for import pricing procedure....
JCDB- BASIC CUSTOM DUTY
JEDB- ECESS ON CUSTOM DUTY
JSDB- S&HECSS ON CUSTOM DUTY
JCV1- CVD
JVDC- ADDITIONAL CUSTOM DUTY
Add aforesaid conditions in your import pricing procedure and calculation for import process...
1.GROSS PRICE+CIF= ASSES SABLE VALUE
2.CALCULATE CUSTOM DUTY ON ***.VALUE
3.ASSES SABLE VALUE+CUSTOM DUTY
4.CALCULATE CVD ON ***.VALUE+CUSTOM DUTY
5.CALCULATE ECESS AND S&HECESS ON CD+CVD
6.CALCULATE ADD.CUSTOM DUTY ON TOTAL VALUE(up to 5th step)
Regards
Rahul

Cenvat on Custom duty on Imports

Hi All
I am facing Aproblem regrading Import.The problem is as follows:
when I am creating a tax code for imported item all the Tax is calculated properly but when i am adding the AP invoice the party account is get increased by the tax amount. Ex as below.
qty 50 rate 100. The entry should be as follows.
1. Raw Material Dr 5000
                    Party A/c Cr 5000
2. CVD                        Dr 434.00
    ED ON CVD             Dr 8.68
    H & S ON CVD         Dr 4.34
    ADD DUTY               Dr 12.00
              Cenvat Credit               459.00
But in B1 entry is as follows
GRPO:     RM            Dr. 5000
                GRN                       Cr. 5000
IN Excise: CVD                        Dr 434.00
                 ED ON CVD             Dr 8.68
                 H & S ON CVD         Dr 4.34
                 ADD DUTY               Dr 12.00
                                     Cenvat Credit             Cr 459.00
AP Invoice: GRN                        Dr 5000
                  Cenvat Credit           Dr 459.00
                                                 Party A/c Cr. 5469.00
How to solve above..
Thanks & Regards
Edited by: Rui Pereira on May 1, 2009 11:58 AM

hi sandip
You need ABAP help ,who will write Routing for this
From your side you need to First Create same condition of custom duty in OBQ1
then insert this custom duty condition ( e.g . JBCD ) in Tax procedure just
before VAT condition type so that VAT will be calculated on inclusive of custom
than ABAP will create Routing , Assigen this Routing ( e.g. 950 ) to condition type in tax procedure in colum Alternative formula for condition base value
then in pricing procedure assigen same routing to same condition for Condition formula for alternative calculation type colum
As per your logic for calulation ABAP will write routing
this is the only way for such calculation
thanks

Basic Custom duty,CVD and Cess on CVD flows into Excise Invoice instate of BED, ECess on BED and SecECes on BED

Hello Gurus,
One of client having two plants one is DTA Plant and Another one is EHTP Plant(100 % EOU) having 100% EOU licence.Any customer buying from EHTP plant , client is charging Basic custome duty , CVD and CVD Cess .(i.e customer is buying from 100% EOU plant means nothing but importing from different country).
They want all the amounts should hit the BED (Basic Excise Duty) G/L Account and those amounts should flow to excise invoice also.
So can you please help me out how to map this scenario?
@ Please find the below duty structure for more clarification.
Basic Customs duty @
3.75%
CVD @
12.00%
Educatoin Cess on CVD @
2.00%
Secondary & Higher Ed. Cess on CVD @
1.00%
Add:Education Cess on Aggregate duty @
2.00%
Add:Secondary & Higher Ed. Cess on Agg. Duty @
1.00%
Total Duty
Duty Payable @ 100% of the Customs duties
Total :
Additional Duty @2% on all customs duties
Cess @ 1% on all customs duties
Total :
Add VAT @
14.50%
Thanks & Regards
Sujit Mahanty

Hello Lakshmipathi,
Thanks for the reply
i made a pricing procedure where i maintained all the condition types for all the above excise duties.
As i mentioned that all the above duties like Basic custom duty, CVD, Edu cess on CVD , Scnd Higher Edu Cess on CVD will hit to Basis Excise duty (BED) GL account,so to achieve this i maintained same (EXD) account Key what i used for BED.
But i problem is that i am not getting all the duties in the excise invoice document, how to get all the duties in the Excise invoice.
Kindly let me know what to do, to achieve all the duties in the excise invoice document.
Regards
Sujit Mahanty

SCE not updated customs duty,cess,hcess, eventhough in material inforecord

Hi,
We have maintained Standard cost for all materials and material ledger is not active. Due to this freight,clearing charges,cst,VAT non deductable,packing and forwarding and customs all these amounts were going into purchase price variance account. But our requirement is to post materials account.
Our standar cost estimate is based on inforecord. So we have created separate condition type for all the above charges and entered with % in inforecord. And also we have included all these conditions in OKKN valuation startegy under deliver cost tab. Based on this setting we have runned the standard cost estimate. System is calculating all the condition type values except Customs duty,cess and higher education cess. So all the calculated values were posted in materials account and customs duty.cess and higher education cess amount are still going to purchase price varience account.
Cany anybody suggest, how this amount also to be included in material cost.
govind.

Dear Govindraj,
Please check in the pricing procedure (M/08) for all non-deductable customs duty, cess and She cess whether the statics field has tick mark.
Regards
Chandu

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

ADC (Additional custom duty)

Hi all,
I am facing one issue regarding additional custom duty at the time of import procurement.
my client is in trading business and do not take any modvat of custom duty,counterveiling duty and all so that i had not maintained any CIN setting.
But my client is taking the refund of additional custom duty that is 4 % on assessable valueBCDCVD+Ecess.
how can i map this scenario when i do the GRN my additional custom duty amounts also goes into stock value.
but client wants to take it into separate GL so that he can take the refund after sale of the material he can take refunds from the custom dept.
pls tell me how can i map this scenario.
pls do the needful.
regards,
dinesh

Hi,
In your Import Pricing use condition type as JADC
And maintain this in SPRO > Logistics - General > Tax on Goods Movements > India > Basic Settings > Determination of Excise Duty > Maintain Excise Defaults > Hera maintain condition type JADC under column "ADC cond" for Tax Procedure
Also in SPRO > Logistics - General > Tax on Goods Movements > India > Basic Settings > Maintain Company Code Settings > Here assign CVD Clearing A/c in field "CVD account" for Company Code
Also do account determination in SPRO > Logistics - General > Tax on Goods Movements > India > Account Determination > Specify Excise Accounts per Excise Transaction > Here maintain ETT "GRPO" with Subtransacion type "IP"
And in SPRO > Logistics - General > Tax on Goods Movements > India > Account Determination > Specify G/L Accounts per Excise Transaction > here do account determination for combination of ETT "GRPO", Excise Group with Subtransacion type "IP"
Keep this condition type as following in M/06;
Cond. class A Discount or surcharge
Calculat.type A Percentage
Cond.category B Delivery costs
Activate "Accrual"
Now during transactions;
When you capture and post BOE, it will debit the ADC Input A/c and credit the CVD Clearing A/c And during MIRO, it will debit CVD Clearing A/c and credit Vendor A/c.

Import-Customs Duty

in my import procedure,
i've made basic customs, ecs & SEces on customs as
delivery costs and checked for accruals
but,only basic customs is getting inventorised not the cess components on customs

hi
check following configuration
in ur pricing u have to create following
JCDB IN: Basic Custom Duty
JCV1 IN : CVD
JECV IN : Ed Cess on CVD
J1CV IN : H&SECess on CVD
JEDB IN : Ed Cess on BCD
JSDB IN : H&SECess on BCD
JADC Additional Duty of Custom
JCV1, JECV, J1CV and JADC will go to Excise MODVAT Accounts and JCDB, JEDB and JSDB will get loaded on inventory.
In M/06, for all above conditions, keep following controls;
Cond. class A (Discount or surcharge) Plus/minus A (Positive)
Calculat.type A (Percentage)
Cond.category B (Delivery costs)
Activate "Currency Conversion" and "Accrual"
now for setoff
maintain the following conditions in excise default settings.
JCV1, JECV, JADC
path: spro>logistic general >tax on goods movements>india >basic settings>determination of excise duty >maintain excise defaults >
along with ur taxprocedure maintain these conditons in the specified fields
JCV1 in CVD condition field.
JECV in ECS conditon field.
JADC in ACD conditon field.
in case of secess on CVD, no need to maintain.
it is hardcodded in the standard
Vendor in GR 2 (Entry always possible)
Import scenario
1.Create material master of import goods.
2.Create vendor master record of import vendor and Customs clearing vendor.
3.Maintain CIN settings.
4.Maintain J1id.
5.Maintain Pricing procedure SAP standard JIMPOR..,maintain required conditions..JCDB,JCV1...
6.Assign the schema to respective import vendor in Purchasing view of VMR.
7.Create import PO ,check in conditions of JCDB, JCV1 the customs clearing vendor(Indian vendor) and percentage is assigned..This can be done by In condition tab select condtion then click on display,then enter.
Save the PO.
8.MIRO --Capture Bill Of Entry.(Commercial Invoice No.,).Customs clearing first .Here CVD will b converted to BED.
9.Capture Excisse invoice--j1iex.
10.MIGO.
12.Post Excise Invoice.
13.MIRO...Payment to vendor(import vendor)
regards
kunal
award if helpful

Custom duty for free goods

Hi Gurus,
In case of free goods for purchase order i.e. free items system doesn't take price or any pricing conditions.
But custom duty is applicable on those goods based on their actual MRP.
How to tackle this scenario?
Kindly suggest solution for CIN applicable as well as without CIN.
Regards,
Krishna

Yes,that will take care only take care of clearing customs vendor payments.But how can I have custom's bill of entry processing or map it for pricing conditions?

GR/IR Key manditory in PO...How can i clear customs duty befor GR

Hi All,
As per the business requirement, i made GR based IR manditory in PO. Now for Import Pos, how can i clear the customs duty before doing GR.]
Regards,
Naidu.

Hi
Custom duty is a delivery cost. You can process the delivery cost before GR even with activation of "GR Based IV".
Control due to "GR Based IV" is applicable for goods item invoice.
warm regards
sairam akundi

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 USER

Hi,
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

Free goods with customs duty

hi sap gurus,
my issues is we are received free goods from the vendor, but this is the import material. we need to pay the customs duty for these free goods. pls explain the process for this
regrads
sap mm

YOU CREATE A PO WITH FREE GOODS, BY UNTICKING INVOICE RECEIPT,
THEN U PASS CUSTOMS BY FB60
DO ONLY GR, DONT DO MIRO
YOUR STOCKS WILL GET UPDATED. WITH ZERO VALUE.
ENJOY
KRIS

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 Rander

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]

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 Oberoi

Fonzie,
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

VAT on Customs duty & surcharge

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