on 11-11-2008 8:36 AM
Hi,
I have to map a typical scenario.Company A is situated in Russia and having no plant. Another company B is situated in india having manf. plant. when custsomer x based in Russia orders material to compant A. Company A sends the requirement to company B in india. Now. I plant to map this with intercompany sales .
My problem is how to consider factors like tax, currency conversion, documents involved in cross-border transfer like Cert.of origin, BOL etc.
Please suggest.
Thanks,
Pramod
First of all be clear whether this is agency sales or third party.
If its agency sales then the company which sends you the requirement directly on the company in india will be eligible for an agency commission and this needs to be handled so. IN this case the company in india will direclty invoice the customer
If its intercompany sales the delivery will be to customer and the commerical invoice to the company giving the order.
In this case an invoice will go with the shipping docs which need not be for the full value. The ctual commerical invoice will go to the orderer.
Third scenario will be where the materal is supplied to the russian copany placing the order and the company supplies to the customer in Russia.
In case of all three scenarios, it needs to be handled as exports. Therfe will be no taxes or dutes applicable in this case. But for sales tax reporting you need to use tax codes to extract the data and also for excise you need to maintain a record of this transactions as well.
regds
Jude
Jude
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Hi there,
Yes this scenario is mapped as Inter company sale since it involves 2 different company codes.
Reg the currency, I beleive you maintain all the currencies in USD (US $). As far as tax is concerned, you include the customs, sales tax etc in the Intercompany pricing procedure that is assigned to Plant in India.
Reg any Cert of Origin, if they need any physical docs, then define them as an O/p type for your intercompany replenishment delivery.
In the Bill of Lading, update it with the num that is generated as per your company policy. Each company has its own policy of what data they update in the BOL.
Regards,
Sivanand
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