4.8.2 Pay Tax

When there are taxes charged on the interest, etc., the payment of the component will always include the corresponding tax amount. If the payment does not include the full amount due, the proportional tax amount is liquidated. You should input the total amount applied to the component. The system then calculates the corresponding tax amount (based on the tax rate) and distributes the amount paid between the component and the tax.

For example, if a customer owes USD 1000 in interest (tax inclusive), the tax rate is 10%, and he pays you USD 1000, the payment is automatically distributed into USD 909.09 (interest) and USD 90.91 (the tax component).

The customer will still owe you USD 90.91 in interest and USD 9.09 tax in tax. Total tax is always calculated on the full schedule. Therefore, if there is a rounding difference, it will be adjusted in the last liquidation.

In the above example, the tax component has come to USD 90.91 for that schedule. Suppose the total tax component is USD 273. If this is paid in three schedules the total will come to USD 272.73 (90.91 + 90.91 + 90.91 = 272.73). During the last liquidation, the system will round off the total of such schedules for the tax to the nearest decimal point, i.e., USD 273.