How to capture ADC in India for trading company

[Former Member]

Dear gurus in India

My client (trading company) plans to implement ECC to India.

- All goods are imported from outside India. So, custom duty has to paid.

- Standard cost is CIF, so custom duty is not included in standard cost.

- All duty will be paid by forwarder first as temporaly and billed by them later on.

- ADC(Additional Duty Custom) which is 4% of all cost including BCD/CVD/Cess

  should be refunded later by claiming state VAT as offset.

According to SAP 964190 - ADC on domestic purchase of imported items,

the solution seems to include ADC’s tax rate(4%) as new condition type for Invoice Verification process.

However, in my client’s case, they cannot know BCD or CVD or Cess until actual custom duty

is informed and billed by forwarder later on. (maybe monthly basis)

So, calculation of ADC by condition type seems impossible in SAP.

In this case, how ADC should be captured in SAP to claim for refund later on?

Just create new G/L account for ADC and posting on FI?

(But, if so, there is no original information such as base amount like CIF or BCD.

So, it seems to be difficult to claim for refund)

BR

Yoshi

[m_madhu]

Hi ,

Please refer the below note 1669512.

also refer the FAQ no 1559435

Madhu M

[Vijayendra]

Dear Yoshi,

Please refer to the below notes for ADC in trader process. Note 943767 seem useful in your case as it is from trader’s perspective only. As you will not be aware of the duties, make use of the MRP indicator at GR and change the duties accordingly at MIGO.

929440: Additional Duty of Customs changes for sales processes

943767: ADC changes for purchase of imported goods from traders

960537: Cancellation of EI having domestic ADC from Traders

If my assumption is wrong, by chance please clarify and provide the example so that I can check it in much better way. You are not aware of the duties like BCD, CVD, ADC, ECS and SECS at the time of purchasing?

Few other notes with respect to capital goods import:

1669512: 100% ADC credit for dealer purchase of imported material

1394771: ADC Credit always taken as 100% for Capital Goods in Imports

Best Regards,

Vijayendra