India Localization SuiteTax Engine Limitations

Read the following limitations of using the India Localization SuiteTax Engine SuiteApp.

Important:

To know more information about the current limitations of the SuiteTax feature, see Known Limitations of SuiteTax.

Tax Deduction at Source (TDS) Limitations

The India Localization SuiteTax Engine SuiteApp has the following TDS limitations.

• The SuiteApp doesn’t let you override tax details on vendor bills when using TDS. If you check the Tax Details Override box and edit tax information under the Tax Details subtab of a vendor bill, you’ll get an error.

• The SuiteApp doesn’t support section codes 194 LBB and 194 LBC.

• The SuiteApp doesn’t calculate TDS on bill credits or vendor prepayments.

• The SuiteApp only uses the fiscal calendar to calculate the TDS threshold. If you enable the Multiple Calendars feature, set the fiscal calendar as India Fiscal Calendar on the subsidiary record. The fiscal year must start in April.

  The value in the Tax Fiscal Calendar doesn’t affect TDS threshold calculation.

• The SuiteApp doesn't calculate TDS if the effective period for a vendor exemption tax rate rule is less than a year.

• If you change the date format in your user preferences, open a TDS tax rule and save it again to avoid incorrect tax calculation. After saving the rule, you can approve, preview, and save a bill.

Goods and Services Tax (GST) Limitations

The India Localization SuiteTax Engine SuiteApp has the following GST limitations.

• The SuiteApp doesn’t support Kerala flood cess or any state-specific cess.

• The SuiteApp doesn’t calculate GST on vendor prepayments or customer advance receipts. You’ll need to use a journal entry to adjust tax liability for these transactions.

• The SuiteApp doesn’t calculate GST on transfer order transactions.

• If you use locations to manage branches and the shipping and receiving locations have different GSTINs, GST won’t be calculated on a transfer order. If you use subsidiaries for branches, a transfer order is treated as a sales or purchase transaction, and only then will GST be calculated.

• The SuiteApp doesn't support GST during item fulfillment.

• The SuiteApp doesn't support tax exemption for subsidiaries under SEZ (Special Economic Zone).

• The SuiteApp only supports GSTIN by nexus (state level) in the subsidiary. Subsidiaries with multiple locations and GSTINs in the same nexus aren’t supported.

• HSN and SAC codes for items only autopopulate on a transaction when you create it through CSV. If you edit a transaction through CSV, the SuiteApp won’t autopopulate the codes.

• If you’re customizing the India localization tax engine to update transactions, ensure the India UE GST Transaction user event (UE) script gets triggered with the correct context (Create/Edit/Approve/Cancel). The UE script processes and caches the required data so the tax engine can complete the action successfully.

  If you update transactions through a workflow or UE script, the SuiteApp doesn’t trigger the India UE GST Transaction script. For more information, see How User Event Scripts are Executed.

  When you use the N/record submitFields function, the SuiteApp triggers the India UE GST Transaction script with XEDIT context.

Electronic Invoicing for India Limitations

The India Localization SuiteTax Engine SuiteApp has the following electronic invoicing limitations.

• The SuiteApp generates an e-document based on the number of line items in a transaction. If the transaction line items contains inventory details, you can generate an e-document for only 700-750 line items. In addition, the total number of characters in an e-document can’t be more than 1,000,000. E-document generation works only for transactions with up to 829 line items.

• The SuiteApp doesn't generate an e-document for payment and kit items.

• If an invoice has lot-numbered or serialized inventory items, you must enable the following features to generate and certify e-documents.

  • Serialized Inventory

  • Lot Tracking

    To enable these features, go to Set Up > Company > Enable Features and check the Serialized Inventory and Lot Tracking boxes on the Items & Inventory subtab.

• You can only cancel an e-invoice on the ClearTax website or the Invoice Registration Portal.

• If TCS is calculated on a transaction, the SuiteApp won’t let you delete it if it has more than 3,000 line items.

Tax Calculation Limitations for Kit and Package Items

The India Localization SuiteTax Engine SuiteApp has the following limitations for kit and package items.

• The following type of transactions don't display kit and package items:

  • Purchase Order

  • Inventory Transfer

  • Inventory Worksheet

  • Inventory Adjustment

  • Transfer Order

• The SuiteApp doesn’t support UQC for kit and package items. Since UQC isn’t available for these, select Services in the India Tax Nature field for those transaction lines. This helps ensure e-document certification works when you generate e-invoices.

Related Topics

• Setting Up the India Localization SuiteTax Engine
• Tax Deduction at Source
• Tax Collection at Source
• Goods and Services Tax
• Electronic Invoicing for India
• Sending Customized Notifications
• Voiding Transactions for India
• Generating Invoices with QR Codes for India

General Notices