3.5.16 Tax Details

Specify Tax Details

With every market place that you define, you can associate a Tax scheme. When you specify the market code, at the time of defining security, the details of the tax scheme associated with the market code are automatically associated with the security.

Note:

At the market definition level, you can only maintain the Issuer tax details. You can, however, change these details at the security definition level.

To invoke this screen, click the Tax button in the Market Definition screen. The Tax Definition screen will be displayed.

Associate Scheme with Issuer Tax

To associate a tax scheme with an issuer class, click the Default From Class’ button. The Default from the Class screen will be displayed. In it is available a list of tax classes specific to the Securities module. Select the tax scheme to be associated with the issuer tax. All the components linked to the particular scheme will be associated with the market code you are defining. To change the tax scheme which has already been linked to a market code, in the Market Definition screen, click on the unlock button in the toolbar.

Indicate Stop Association

The tax components linked to a tax scheme will be automatically applied to all deals involving the security associated with the particular market code. However, if you want to stop applying one or more of these components to new contracts that are initiated, you can do so by checking the Stop Association field. Stopping the application, of a tax component for a market code would be equivalent to deleting the component for all deals involving the security. However, you have the option of using the definition made for the component, once again. To do so, Uncheck this field. Deals that are subsequently input, will pick up the components.

Note:

Entry to certain fields in the Market Definition screen is mandatory. If you try to save the record without inputs to all these fields, the record will not be saved. You will be prompted to give all the mandatory inputs before attempting to save it again.