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Table of Contents (Online Help)

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:

Loans disbursed between: Select the date range of loans disbursed that the system will have to compute the stamp duty e.g., "01/01/2019" and "08/11/2019".
Loan product: From the drop down, select the loan product the stamp duty tax shall be computed on or you can tick for all so the report will display stamp duty computed for all loan products.
Accrued interest as of: When you tick this option, stamp duty shall be computed on accrued interest upto the date displayed / selected e.g. accrued interest as of "08/11/2019".
Loan product: From the drop down box, select a loan product that you want to levy the stamp duty on the interest generated. You may tick the Check for all option to have a report on all loan products that are available in the system.

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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www.loanperformer.com

Table of Contents (Online Help)

Calculate stamp duty

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

Contact LPF live support for more informationThis service requires an Internet connection.

Contact LPF live support for more information
This service requires an Internet connection.