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 using the SuiteTax feature, see Known Limitations of SuiteTax.

Tax Deduction at Source (TDS) Limitations

TDS includes the following limitations:

The India Localization SuiteTax Engine SuiteApp does not support:
- Overriding tax details on vendor bills when using the Tax Deduction at Source (TDS) feature. The SuiteApp throws an error if you check the Tax Details Override box and edit the tax information under the Tax Details subtab of a vendor bill transaction.
- Section code 194 LBB and Section code 194 LBC.
- TDS calculation on bill credit and vendor prepayment transactions.
The India Localization SuiteTax Engine SuiteApp considers only the fiscal calendar to calculate TDS threshold.

When the Multiple Calendars feature is enabled, you must set the Fiscal Calendar as India Fiscal Calendar on the subsidiary record. The fiscal calendar must begin from April.

The value in the Tax Fiscal Calendar does not affect TDS threshold calculation.
The effective period for a vendor exemption tax rate rule cannot be less than a year.
If you change the date format when setting user preferences, you must open a TDS tax rule and save it again. After doing this action, you can continue to approve a bill, preview an approved bill, or save a bill without affecting tax calculation.

GST includes the following limitations:

The India Localization SuiteTax Engine SuiteApp does not support:
- Kerala flood cess or state specific cess.
- GST calculation on vendor prepayment or customer advance receipt. You can use a journal entry to increase or decrease the tax liability due to these transactions.
- GST calculation on transfer order transactions.
  
  If you use locations to manage branches where the shipping and receiving branches have different GSTIN, GST will not be calculated on a transfer order. If you use subsidiaries to manage branches, a transfer order will be treated as a sales or purchase transaction and only then GST will be calculated.
- GST tax during item fulfillment.
- tax exemption for Subsidiaries under SEZ (Special Economic Zone).
The India Localization SuiteTax Engine SuiteApp only supports GSTIN by nexus (state level) in the subsidiary. A subsidiary that has multiple locations and GSTINs in the same nexus is not supported.

Electronic invoicing for India includes the following limitations:

You can generate an e-document successfully depending on the number of lines item included in a transaction. If a transaction contains line items with inventory details, an e-document can be generated for 700 – 750 line items only. In addition, the number or characters in an e-document must not exceed 10,00,000 characters.
You cannot generate an e-document for payment and kit item types.
If an invoice contains lot numbered or serialized inventory item types, you must enable the following features for e-document generation and certification.
- Serialized Inventory
- Lot Tracking
  
  To enable, go to Set Up > Company > Enable Features. On the Items & Inventory subtab, check the Serialized Inventory and Lot Tracking boxes.
You can cancel an e–invoice only from the ClearTax website or the Invoice Registration Portal.
You cannot delete a transaction with more than 3000 line items if TCS is calculated on the transaction.

Following are the limitations related to kit and package type of items.

The following type of transactions do not display kit and package type of items:
- Purchase Order
- Inventory Transfer
- Inventory Worksheet
- Inventory Adjustment
- Transfer Order
The India Localization SuiteTax Engine SuiteApp does not support UQC for kit and package items. As UQC is not available for these items, select Services in the India Tax Nature field in the transaction lines for kit and package items. This action will ensure successful certification of an e-document when generating electronic invoices.