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