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How to: Set Up Countervailing Duty

  • Article

Countervailing Duty (CVD) is levied on goods that are:

  • Manufactured in India

  • Imported to India

  • Listed under the Central Excise Tariff Act of India

To set up CVD, you must do the following:

To set up structure for countervailing duty

  1. In the Search box, enter Structure, and then choose the related link.

  2. In the Home tab, choose New.

  3. On the General FastTab, fill in the fields as described in the following table.

    Field Description

    Code

    The unique structure code.

    Description

    The structure code description.

  4. On the Structure Details FastTab, fill in the required fields as described in the following table.

    Field Description

    Type

    Select Excise as the type of tax or charge.

    CVD

    Select to specify that the structure is used for calculating CVD and ADC VAT.

    CVD Payable to Third Party

    Select to transfer the CVD and ADC VAT amounts to the third party automatically.

    CVD Third Party Code

    The general ledger account code representing the third party.

    Header/Line

    Select Line to indicate that the defined tax or charge is applicable for the order lines.

  5. Choose the OK button.

See Also

Tasks

How to: Calculate Countervailing Duty and Additional Duty of Customs VAT Using Purchase Orders
How to: Set Up Tax or Charge Groups and Structures
How to: Set Up Excise Tax for India
How to: Set Up Excise Tax in the General Ledger and as a Payment Structure
How to: Create Excise Entries Using Purchase Orders, Sales Orders, and Transfer Orders

Concepts

Excise Tax Overview
Calculating Taxes and Duties

Other Resources

Excise Business Posting Groups Window
Excise Product Posting Groups Window
Excise Posting Setup Window
Setting up G/L Accounts in the Chart of Accounts Window
Creating Purchase Orders Manually
Posting Purchase Orders