diff --git a/controllers/accounts_controller.py b/controllers/accounts_controller.py
index 6d4a6ad53bd..d6bf392861b 100644
--- a/controllers/accounts_controller.py
+++ b/controllers/accounts_controller.py
@@ -265,7 +265,7 @@ class AccountsController(TransactionBase):
 					tax.grand_total_for_current_item = \
 						flt(self.tax_doclist[i-1].grand_total_for_current_item +
 							current_tax_amount, self.precision("total", tax))
-							
+				
 				# in tax.total, accumulate grand total of each item
 				tax.total += tax.grand_total_for_current_item
 				
diff --git a/public/js/transaction.js b/public/js/transaction.js
index e460982f704..118594c8160 100644
--- a/public/js/transaction.js
+++ b/public/js/transaction.js
@@ -312,7 +312,8 @@ erpnext.TransactionController = erpnext.stock.StockController.extend({
 					if(!item_tax[item_code]) item_tax[item_code] = {};
 					if($.isArray(tax_data)) {
 						var tax_rate = tax_data[0] == null ? "" : (flt(tax_data[0], tax_rate_precision) + "%"),
-							tax_amount = format_currency(flt(tax_data[1], tax_amount_precision), company_currency);
+							tax_amount = format_currency(flt(tax_data[1], tax_amount_precision), company_currency,
+								tax_amount_precision);
 						
 						item_tax[item_code][tax.name] = [tax_rate, tax_amount];
 					} else {