Resolving TDS Calculation Error on Bill

Scenario: When trying to calculate TDS after creating and approving a bill, the following error occurs:

“Tax Calculation Plugin error due to no applicable tax deduction at source rule was found for this bill. Please go to Setup > Accounting > India Tax Rate Rules for TDS to set up a new tax rate rule record.“

Even though the related TDS tax rate rule was already in place, the error occurred because the vendor’s PAN number was missing in the vendor record, even though PAN Availability was marked as “Available.”

Steps to Resolve:

• Add the Vendor’s PAN:

1. Go to the vendor’s record used in the bill.
2. Ensure the PAN Number field is filled in.
3. After adding the PAN, approve the bill again.
4. Once approved, the TDS calculation should process correctly.

Alternate Solution (Vendor Without PAN):

If the vendor does not have a PAN, you need to create a new TDS rule:

• Create a TDS Rule for Vendors Without PAN:

1. Go to Setup > Accounting > India Tax Rate Rules for TDS.
2. Create a new TDS Rule or update an existing one.
3. Check the Resident Vendor Without PAN checkbox, which applies to vendors without a PAN.

Note:

Initially, TDS calculation can only be seen after the bill has been approved. With the NetSuite 2024.2 Release, the Preview Tax button allows you to check the TDS calculation before approval.