Tax Deduction at Source
The tax deduction at source is the obligation of organizations and businesses to reduce the tax from payment and pay it to the tax authorities. In face, this obligation is applied to the beneficiary, but the business has to reduce this tax from the payment.
Hyper calculates the the Tax Deduction according to the Clients / Suppliers cards as follows:
- In order to be a part of the Taxation process, the client must have a real trading account, which defined as "Locked Name & ID = 1" (YES), in the hyp_Clients table. Also, the handling status of the client must be "Real Client" or "Relal Client + Club / Contract" (handling status 5/6).
- The value of the "Skip this account on TDS reports" field (hyp_Clients table) must be 0 (NO).
- The system executes a query on the on the close trades and on the Bookkeeping Entries of the "Tax deduction at Source", from the beginning of the calendar year.
- The system calculates the toal Tax Deduction at Source for each trade, in the local currency. The conversion is done from the bookkeeping currency and according to the exchange rate of the same day. Each trade has a "TDS Rate %" field, which is copied from the client card when calculating the daily Total P&L (by the automation).
- The system counts the new trades for each trading account and saves the highest Trade ID and the highest TDS Rate %.
- The system will merge the accounts with the same account number (Client Number). These accounts will be joined to the one with the highest Equity.
- The bookkeeping entry of the tax (Debit or Credit), is done in the account with highest value.
- For follow up and monitoring purposes, the trades from the Tax Deduction at Source report get the last day of the report for the "TDS Import Date" field (hyp_Client Trade Log table).
- These actions of the system can be defined to be done on a daily basis (for the night of the last trading date) or an a monthly basis (for the last trading month). These definitions are defined in the INI file of the automation.