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SAP Note 910681 - Legal changes on Additional Duty ofCustom
Note Language: English Version: 7 Validity: Valid Since 14.03.2007
Summary
Symptom This is a legal change. Additional duty of Customs(ADC) levied under
section 3(5) of customs tariff Act.The Government has imposed a
countervailing duty of 4% to compensate for sales taxes/VAT that would be
applicable if such goods were manufactured and sold in India.
A CVD of 4% is levied on all imports. credit for the CVD to be available
for payment of excise duty on finished products alone .
Other termsAdditional duty of Customs, ADC, Custom duty,Budget 2005-06, Budget
2006-07, CVD
Reason and Prerequisites
Legal changes.Budget 2005-06,Budget 2006-07, Indian Government has imposed a new duty of
4% levied on all imports .
Prerequisites
1 user should have CIN installed.
2 Close all open purchase orders before applying this note.
SolutionKindly go through this note for the solution being provided.
DDIC ChangesPlease refer to the attachment 'DDIC_ADC.zip' and make the DDIC changes
accordingly.This document provides the details to create a new field in the table
J_1IEXCDEF.
Procedure for regenerating the viewsAfter this, run transaction SE11, select database table and input the
table name as J_1IEXCDEF. In the change mode, select Utilities -> Table
maintenance
generator from the menu bar. Click on the change icon. In reason for
change, select 'New field/sec.table in structure'. Click on 'Expert
mode' in the pop-up that appears. Select the entire list of entries and
press enter. The view is regenerated with the new field.
ConfigurationsPlease refer to the attachment 'Configurations_ADC.zip'and make the
Configurations accordingly.
Overview - Logic
o This Additional duty of Customs will be captured against the field
specified for AED.
o The Additional Duty of Customs value will flow into a new G/L
Account.
o This G/L account is the account maintained against AED for a new
sub-transaction type (predefined and delivered, which can be
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SAP Note 910681 - Legal changes on Additional Duty ofCustom
overwritten with the help of a user exit that has been provided).
This will ensure that AED credit and Additional Duty of Customs
credit are separated.
o Account determination logic triggers determining this new account
if the excise invoice is flagged as CVD relevant and has a non-zero
AED value (which means it is Additional Duty of Customs).
Note : To differentiate the G/L account of Additional duty ofCustoms a new subtransaction type ('IP') is introduced .This has to be maintained as mentioned in the above ZIPfile.An user exit 'J_1I7_USEREXIT_UPDATE_STYPE' is provided tooverwrite the subtransaction type from 'IP' to customerspecific requirement.
Create the user exit J_1I7_USEREXIT_UPDATE_STYPE
o Execute the transaction SE37
o Enter the Function module name as 'J_1I7_USEREXIT_UPDATE_STYPE'
o Function group = 'J1I7'
o Short text = Update subtransaction type
o Maintain the following in the IMPORT tab
Parameter name Type Associated type OptionalIS_EXHEAD LIKE J_1IEXHEAD Checked
o Maintain the following in the Changing tab
Parameter name Type Associated type OptionalL_STRTYP LIKE J_1IEXHEAD-STRTYP Checked
Credit Rules
o A manufacturer can take credit of ADC
o A service provider can not take credit of ADC
o 100% credit can be taken for capital goods in first year itself.
Utilization Rules
o ADC can be utilized against any excise duties except Service tax
and ECS on service tax.
Changes in Monthly Utilization(J2IUN)A new field 'ADC Subtransaction Type' is added in the selection screen.This
field is required to get the ADC credit in utilization screen.
o Sub transaction type has to be entered manually
o Since the ADC credit flows into a new G/L account, it makes it
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SAP Note 910681 - Legal changes on Additional Duty ofCustom
possible to separately display the ADC credits and its subsequent
utilization. As per the legal requirement, ADC credit cannot be
utilized to pay Service tax or the Education Cess on Service tax.
Code CorrectionsKindly apply the following code corrections.
Header Data
Release Status: Released for Customer
Released on: 07.07.2006 10:54:32
Master Language: English
Priority: Correction with high priority
Category: Legal change
Primary Component: XX-CSC-IN-MM Materials Management
Secondary Components:
MM-PUR Purchasing
Valid Releases
Software Component Release From
Release
To
Release
and
Subsequent
SAP_APPL 470 470 470
SAP_APPL 500 500 500
SAP_APPL 600 600 600
CIN 2.2 22B 22B
CIN 3.0 30A 30A
CIN 4.0 40A 40A
Support Packages
Support Packages Release Package Name
CIN 22B SAPKIPNBD3
CIN 30A SAPKIPNE19
CIN 40A SAPKIPNG10
SAP_APPL 470 SAPKH47026
SAP_APPL 500 SAPKH50012
SAP_APPL 600 SAPKH60004
Related Notes
Number Short Text
1014870 Incorrect Excise Base defaulted in J1IEX for ADC process
1002766 Addition of excise duties, ECS and ADC, in Report J2I9
989708 Corrections to note 964190 - Additional duty of customs
964190 ADC on domestic purchase of imported goods
960566 Incorrect excise base in capture EI for imports having ADC
945692 CVD indicator not selectable in J1IG for stock tranfer.
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SAP Note 910681 - Legal changes on Additional Duty ofCustom
Number Short Text
943767 ADC changes for purchase of imported goods from traders
941387 Available credit amount incorrect in J2I8 for Release 46B
934265 J2IUN modifications for ADC
930947 Corrections of ADC in CIN 3.0A and 4.0A
930939 In J1IX,incorrect Part2 entries for capital goods having AD
930756 In MIGO,incorrect Part2 entries for capital goods having ADC
930735 Incorrect updation of ADC in part1 and grxref tables
929681 Subtransaction type not picked up for ADC in MIGO C&P EI
929440 Additional Duty of Customs changes for sales processes
928789 Incorrect GL a/c picked for imported capital goods in J1IX
927558 Budget 2006 - Legal implications
914034 ADC code corrections for ERP 2004 and 2005 customers
Attachments
File
Type
File Name Language Size
ZIP Configurations_ADC.zip E 73 KB
ZIP DDIC_ADC.zip E 3 KB
Correction Instructions
Correcti
on
Instruct
ions
Valid
from
Valid
to
Software
Component
Typ
e
*)
Reference
Correction
Last
Changed
761634 470 470 SAP_APPL C P6BK210861 28.12.2005
13:45:23
761670 500 500 SAP_APPL C P6DK067482 18.04.2006
09:13:53
761672 600 600 SAP_APPL C P7DK018691 28.12.2005
14:01:57
761632 30A 30A CIN C WSDK006848 28.12.2005
13:39:12
761633 40A 40A CIN C CVDK002796 28.12.2005
13:42:31
805025 22B 22B CIN C PJ4K018107 07.07.2006
15:26:38
*) C Correction, B Preprocessing, A Postprocessing, M Undefined Work