1.4.2 Currency in which the Tax has to be Calculated

This can be the local currency or the currency of the contract. When a rule for which the tax should be calculated in local currency is applied on a contract involving a foreign currency, the local currency equivalent of the contract amount is considered.

1. On Tax Rule Maintenance screen, click the Currency Details button and specify the fields.
   For more information on fields, refer to the field description table.

   Table 1-5 Currency Details - Field Description

   Field	Description
   Currency	Specify the currency from the adjoining option list provided.
   Reference Currency	Specify the currency from the adjoining option list provided.
   Calculation Currency Basis	Calculation currency is the currency in which the Basis Amounts slabs are defined. You need to specify whether the calculation currency for the Basis Amount should be Specific or Deal. Specific indicates that the Basis Amount will be defined as per the currency selected in the Currency field. Deal indicates that the Basis Amount will be defined in the currency of the transaction.
   Currency for Calculation Currency	You need to specify the currency to be used for conversion of the taxable amount. This option is enabled only if the Calculation Currency Basis is selected as Specific.
   Tax Currency Basis	You need to specify the currency in which the final tax should be computed by the tax subsystem. This could either be Specific, Deal or Local currency. Specific indicates that the final tax would be reported in the currency defined in the Tax Currency field of Tax Rule Maintenance. Deal indicates that the final tax reported by the tax subsystem would be in the currency of the transaction. Local Currency indicates that the final tax would be computed in the local currency of the Branch.
   Currency for Tax Currency	This is enabled only if the basis for the Tax Currency is selected as Specific.

2. Click the Exit button to close the screen.