1.6.1 Tax Class Maintenance

This topic describes the systematic instructions to maintain the Tax Class.

You can define the attributes of a transaction level tax under the corresponding section of the ‘Treasury Tax Class Maintenance’ screen. Before defining the attributes of a Transaction Tax Class, assign the class a unique identifier, called the Class Code, and briefly describe the class. A description would help easily identify a class.

1. On the Homepage, enter TADTRTXC in the text field and then click the next arrow.
   The Treasury Tax Class Maintenance screen is displayed.

   Figure 1-9 Treasury Tax Class Maintenance

   
   Description of "Figure 1-9 Treasury Tax Class Maintenance"
2. On the Treasury Tax Class Maintenance screen, specify the fields.
   For field details and description, refer to the below table.

   Table 1-8 Treasury Tax Class Maintenance - Field Description

   Field	Description
   Class Code	Specify a unique code to identify the class.
   Description	Specify a brief description for the class.
   Module	A tax class is built for use in a specific module. This is because the basis amounts on which the tax is applied could vary with the modules. In the Foreign Exchange module, for instance, you might want to levy tax on the brokerage paid. In the Securities module, you might have to pay a tax on the value of a security that you purchase. The basis on which the tax component is calculated is different in these two cases. Note: The Basis Amount Tags available, in this screen, would depend on the module for which you build the class.
   Description	The system displays description of the module.
   Tax Type	Select the Tax Type from the drop-down list. The available options are: Withholding Others Withholding type tax is borne by the beneficiary on an income (either the bank or the customer). For example, the tax on the brokerage paid would be borne by the broker. You withhold this component in a Tax Payable account, by debiting the customer account (since brokers are defined as Customers in Oracle Banking Treasury Management) and later paying the tax to the government on behalf of the broker.
   Borne By	Select the Borne by from the drop-down list. The available options are: Bank Customer
   Cash Outflow	Select the Cash Outflow check box.
   Event For Association	Select the code of Event for Association from the displayed list of values.
   Event For Application	Select the code of Event for Application from the displayed list of values.
   Event For Liquidation	Select the code of Event for Liquidation from the displayed list of values.
   Allow Rule Amendment	Specify the event at which collection of the charge should be triggered, The adjoining option list displays all events available in the system for the module specified. You can choose the appropriate one.
   Amend After Association	Check this box to indicate that charge should be collected for dispatching the customer advice.
   External Pricing	Check this box to indicate that external charges can be fetched from external pricing and billing engine for contracts created under this product.
   Debit Customer as part of Billing	Check this box to indicate that the configured charge will be debited from customer account as part of billing feed from external pricing and billing engine.