Purchasing from SEZ

[Former Member]

Hi,

We need to do purchasing from SEZ and need to pay following duties:

1. Custom (3.75%)

2. Custom Ecess (2%)

3. Custom HEcess (1%)

4. CVD (10%)

5. CVD Ecess (2%)

6. CVD HEcess (1%)

7. Ecess under section 93 (2%)

8. Ecess under section 138 (1%)

and

9. Sales Tax (2%)

The duties paid against CVD (point 4, 5 & 6) are cenvatabale while duties paid against Custom, Ecess (under section 93 & 138) and Sales Tax (point 1, 2, 3, 7, 8 & 9) are to be loaded to Inventory.

Can anyone provide some idea in order to handle this scenario?

Thanks in advance

[former_member187989]

Can you tell more about nature of business,type of industry of client/customer is doing ?

[Former Member]

My client belongs to Chemical Industry and in order to make their products they regularly purchase Raw Materials from different Vendors from different locations.

This is a scenario of purchasing Raw Materials from SEZ (Special Economic Zone) which is considered as an Import Purchasing even if the zone is in India (same country) itself. But the duties and taxes are slightly different (as I mentioned earlier) from normal Import or Domestic Purchasing.

Is the information sufficient for more understanding of the scenario?

Please provide some idea in order to handle this.

Thanks in advance

[Former Member]

Hi ,

The scenario seems to be similar to the standard CIN scenario having "Basic Excise Duty + Sales Tax."

1. Custom (3.75%)

2. Custom Ecess (2%)

3. Custom HEcess (1%)

4. CVD (10%)

5. CVD Ecess (2%)

6. CVD HEcess (1%)

7. Ecess under section 93 (2%)

8. Ecess under section 138 (1%)

and

9. Sales Tax (2%)

The duties paid against CVD (point 4, 5 & 6) are cenvatabale : "So it can be Accommodated as "Basic Excise EcessHcess" in Tax Procedure."

And duties paid against Custom, Ecess (under section 93 & 138) and Sales Tax (point 1, 2, 3, 7, 8 & 9) are to be loaded to Inventory : These can be taken care by creating the Condition types in the Pricing Procedure.

But Prior to that the sequence of the Conditions applicable in the pricing should be known & the Base of the Condition,

If you Can provide the same , Will be able to guide further.

Regards

Mascot

[Former Member]

Hi,

Thanks for the reply

Please find the pricing structure as follows

Terms Value Symbol Depends Upon

Basic 100.00 A

Basic Cus. Duty @3.75% 3.75 B

excise CVD @10% 10.38 C A+B

CVD educational cess @2% 0.21 D C

CVD HEC @1% 0.10 E C

Cust Ed. Cess @2% 0.29 F BCD+E

Cust HEC @1% 0.14 G BCD+E

Edu.CESS section-93 @2% 0.30 H BCDEF+G

Edu.CESS section-138 @1% 0.15 I BCDEF+G

Excise Duty @10% 14.13 J B+C

HSE @2% 0.79 K DFH

S.H. Edu. Cess @1% 0.40 L EGI

salestax amt CST@2% 2.31 M AJK+L

Delivered cost (Excluding Frieght) 106.94 N ABFGHIM

The main points are as follows:

1. The Excise (CVD) depends upon Basic Value + Custom Duty (Basic)

2. Values of Custom Cess depend upon Custom Duty (Basic) + Excise (CVD) Duties

3. Ecess under section 93 & 138 depend upon Custom Duties + Excise (CVD) Duties

4. Sales Tax (CST) depends upon Basic Value + Custom Duties + Excise (CVD) Duties + Sum of Values of Ecess under section 93 & 138

Out of all duties only Excise (CVD) Duties are cenvatabale and all other duties are to be loaded to the Inventory.

Please provide some idea in order to get the required result

Thanks in advance

[Former Member]

Hi,

Any answer, please

Thanks in advance