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Calculate stamp duty

Stamp duty in LPF is a tax levied on principal portfolio and interest income arising from portfolio that needs to be collected and handed to the tax body/ authority.

  • Note that before you can be able to compute stamp duty on principal portfolio and interest, you need to have defined the GL accounts where the stamp duty on principal, interest and tax liability account will be booked under System/Configuration/Loan Product Settings/Fees

  • How to calculate stamp duty

    To calculate loan provision you go to Account/Calculate stamp duty and a screen will be displayed as follows:

    Note that:
    1. The booking to the GL will only happen when you print the report generated at calculation of Stamp Duty.

    2. Also ensure that you have selected the option "Do update accounts" for the system to prompt you to print and hence post the transactions and save the changes.

    3. The statutory percentages of stamp duty are defined under System/Configuration/Loan Product Settings/Fees.

    The system will thus post the Stamp duty transactions as below:

    1. Stamp duty on principle (Expenses)

    Debit

     

     
    2. Stamp duty on accrued interest (Expenses)

    Debit

     

     
           3. Stamp duty liability account

     

     

    Credit

     

     

    Debit

    Credit
    1. Stamp duty on principle (Expenses)

    1,575,000

     

     
    2. Stamp duty on accrued interest (Expenses)

    15,000

     

     
           3. Stamp duty liability account

     

     

    1,590,000

     

    Click on the Close button to exit.

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