1. Tax User Guide
  2. Build Tax Components
  3. Tax Component Groups
  4. Define Securities and Derivative Taxation Schemes

1.8.2 Define Securities and Derivative Taxation Schemes

A contract that you enter into could consist of one or more tax components (a Stock Exchange tax, a Local tax, etc.). You can define each of these components as a tax class, and associate each with a tax rule. A tax rule identifies the method in which a tax component is calculated.

A tax scheme is composed of one or more tax classes. For instance, a Transaction Level Tax Scheme would be composed of one or more transaction level tax classes. By associating a Tax Scheme with a product, you can calculate all the tax components for the contracts entered under the product at one stroke. Tax schemes can be built in the Tax Scheme Maintenance screen.

Specify User ID and Password and login to Home screen.
  1. On Home screen, type TADTRSHC in the text box, and click next.
    Treasury Tax Scheme Maintenance for Tax Class screen displays.

    Figure 1-11 Treasury Tax Scheme Maintenance for Tax Class

    Description of Figure 1-11 follows
    Description of "Figure 1-11 Treasury Tax Scheme Maintenance for Tax Class"
  2. On Treasury Tax Scheme Maintenance for Tax Class screen, specify the fields.

    Note:

    The fields which are marked in red asterisk are mandatory.
    For more information on fields, refer to the field description table.

    Table 1-18 Treasury Tax Scheme Maintenance for Tax Class - Field Description

    Field Description
    Tax Scheme Specify the unique code to identify a Tax Scheme.
    Description Specify a brief description about the tax scheme.
    Component Specify the components that you would like to include in the Tax scheme.
    Stop Association Select this option to instruct the system not to calculate tax for a product. The Tax details specified for a product will be automatically applied on all contracts involving the product. However, while processing a contract, you can waive the application of all or specific tax rules for the contract.
  3. Click the Exit button to close the screen.

Parent topic: Tax Component Groups