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SED is getting inventorized in MIGO which is required as creditable component similar CVD

We are working on a scenario where Special custom duty (SED) should not be inventorized at the time of MIGO & should be available for credit availment similar to CVD in case of external import procurement.

Current Accounting entries at the time of MIGO as:

1000 1 89 208022 INV. STORE (IMP) 1.158,48 USD 1100 1100 BSX 208022 S
1000 2 96 106901 GR/IR Clg. Account 1.000,00- USD 1100 1100 WRX 106901 H
1000 3 96 107904 CUSTOM CLEARING(BCD) 101,00- USD 1100 1100 FR3 107904 H
1000 4 96 107904 CUSTOM CLEARING (ECESS)4,80- USD 1100 1100 FR3 107904 H
1000 5 96 107904 CUSTOM CLEARING (HECESS)2,40- USD 1100 1100 FR3 107904 H
1000 6 50 107902 Cenvat Clearing-SED 50,28- USD 1100 1100 ZSD 107902 H

Required Accounting entries at the time of MIGO as:

1000 1 89 208022 INV. STORE (IMP) 1.108,20 USD 1100 1100 BSX 208022 S
1000 2 96 106901 GR/IR Clg. Account 1.000,00- USD 1100 1100 WRX 106901 H
1000 3 96 107904 CUSTOM CLEARING(BCD) 101,00- USD 1100 1100 FR3 107904 H
1000 4 96 107904 CUSTOM CLEARING (ECESS)4,80- USD 1100 1100 FR3 107904 H
1000 5 96 107904 CUSTOM CLEARING (HECESS)2,40- USD 1100 1100 FR3 107904 H

To summarize the requirement for external import procrement:

1. SED Should not inventorized in MIGO

2. SED amount should be available in J1IEX for duty credit

3. SED amount should be available for credit availment

Please suggest a solution/work around to achieve this.

Regards

Rohit

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3 Answers

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    Former Member
    Jan 06, 2017 at 05:03 AM

    Hello Experts,

    Please help by suggesting a solution.

    Regards

    RPA

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    Former Member
    Jan 10, 2017 at 12:21 PM

    Hi,

    What is the condition type used for SED in pricing procedure? Kindly use standard condition type as few conditions are hard coded in CIN program.

    Regards

    Ranjjini

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    Former Member
    Jan 13, 2017 at 03:55 PM

      Hi,

      • Please check the condition type assigned to SED in you Tax Procedure (T-code OBQ3) and see the Account Key assigned to the condition type.
      • Enter T-code: OBCN and search for the Account Key and go to details. Ensure that Non deductible is unchecked as shown in below image.
      • Let me know if this helps.

      Regards,

      VK

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