2.5.3 Exchange Rate Type
For more information on the fields, refer the Field Description table given below:
Table 2-6 Exchange Rate Type - Field Description
| Field | Description |
|---|---|
| Rate Code Type | When maintaining a tax rule, you must specify the type of exchange rate that you would like to use to compute tax. At your bank, you may have defined different types of exchange rates. For example, you may have defined a ‘Central Bank Rate’, a ‘Standard Rate’, a ‘Cash Rate’, a Travelers Check Rate, etc. In Oracle Banking Trade Finance, these rates are referred to as ‘Rate Types’. |
| Rate Code |
If you have specified that tax is to be computed as a percentage of the taxable amount, you should also specify if the rate to be used is:
|
| Basis Percentage | You need to specify the factor for computation of the taxable amount. The basis percentage should be greater than 0 and less than or equal to 100. The basis amount would first be multiplied by this percentage to arrive at the actual basis amount on which tax needs to be computed. The reciprocal of the same factor would then be applied to the calculated tax amount to arrive at the actual tax amount. |
Parent topic: Tax Rules