Social Welfare Surcharge on Bill of Entry - Issue in Calculation and Impact on IGST

ERPNext India Compliance
,
1

The surcharge ( SWC) is supposed to be calculated only on Basic Custom duty ,

The flow of Taxes is as follow - BCD = Assessable Value × BCD Rate, SWS = BCD × 10%, IGST Value = Assessable Value + BCD + SWS

Issues

  1. If we manually add surcharge in Tax child Table - IGST Calculation is incorrect (This isssue is already raised in Git Hub , have taken screeshot from there)

    image
    image1276×316 21.5 KB

  2. If we Use Item Tax Template in Purchase Invoice to book the Surcharge , the calculation of surcharge is incorrect , suchareg is getting calculated on Assessable value rather than BCD.

image
image2048×520 54.7 KB

2

The way this is designed in Bill of entry is all taxes are divided into two components:

  • Credit not available (Total Customs Duty)
  • Credit available (IGST)

Assessable value is editable if customs choose to have one different from your books.
SWS, BCD etc should all be added to total total customs duty. There is no added benefit of accounting it separately AFAIK.