What is additional duty of customs in SAP FI-LOC - Localization?

SAP Term: additional duty of customs

• Component: FI-LOC

• Component Name: Localization

• Description: Financial Accounting FI Imports duty in India, over and above the countervailing duty, basic customs duty and price of the product. This duty is applicable on all products and is charged at 4% on the aggregate price plus duties. Education Cess is not calculated on ADC.

Smart SAP Assistant

• Key Concepts: 
  Additional duty of customs is a type of tax imposed by a country on imported goods. It is a form of protectionism, which is the practice of shielding domestic industries from foreign competition by imposing tariffs or other restrictions on imported goods. In SAP, additional duty of customs is managed through the FI-LOC Localization component. 
  
  How to use it: 
  The FI-LOC Localization component in SAP allows users to manage additional duty of customs. This includes setting up the tax rate, calculating the tax amount, and posting the tax to the general ledger. The component also provides reporting capabilities to track and analyze the taxes collected. 
  
  Tips & Tricks: 
  When setting up additional duty of customs in SAP, it is important to ensure that all relevant information is entered correctly. This includes the tax rate, the tax amount, and any other relevant details. Additionally, it is important to regularly review and update the tax rate to ensure accuracy. 
  
  Related Information: 
  Additional duty of customs is just one type of tax that can be managed in SAP. Other taxes that can be managed include value-added tax (VAT), goods and services tax (GST), and sales tax. Additionally, SAP provides a range of other localization components that can be used to manage taxes in different countries or regions.