TAXATION
Features of Indian Taxation
- Tax Deduction at Source (TDS)
- India Goods and Services Tax (GST)
Tax deduction at source
TDS is a means of collecting tax under the Indian Income Tax Act of 1961. The government of India introduced this concept to collect tax from the very source of income. It also aims to deduct tax at the time of issuing an invoice or actual payment, whichever happens first.
India Goods and Services Tax (GST)
GST is an indirect tax imposed on the supply of goods and services right from the manufacturer to the consumer.
The India Localization Suite Tax Engine provides the following features that are specific to India business tax requirements:
- Manage and calculate Tax Deduction at Source (TDS)
The TDS feature of the SuiteApp lets you to perform the following processes:
- Automated creation of tax records for TDS calculation such as tax codes (Section Code and Challan Code) and tax types.
- Calculation of TDS when processing Vendor Bills based on your preferred set of TDS tax rate rules.
- View and prepare TDS tax details in preparation for submission to tax authorities and for tax return filing purposes.
- Generation of TDS challan voucher.
- Manage and calculate India Goods and Services
The India GST feature of the SuiteApp lets you to perform the following processes:
- Automated creation of tax records for India GST calculation such as tax codes (HSN and SAC Codes) and tax types.
- Calculation of GST when processing sales and purchase transactions based on your preferred set of India GST tax rate rules.
- View and prepare GST tax details in preparation for submission to tax authorities and for tax return filing purposes.
- Support export and import of goods and services under GST regulations.
- Support E-Way Bill processing for India.
- Ability to create statutory adjustment journal.
Generate, certify, and send electronic invoices
The India electronic invoicing feature of the SuiteApp lets you to perform the following processes:
- Connect NetSuite with the GST Suvidha Providers (GSPs).
- Generate outbound e-invoices that comply with the electronic invoicing schema prescribed by the government.
- Submit e-invoices for certification (register) on the Invoice Registration Portal (IRP).
- Send certified e-documents to customers.
- Store and print Invoice Registration Number (IRN) and QR Code.
Setting Up the India Localization Suite Tax Engine
To enable the Suite Tax feature, go to Setup > Company > Enable Features. Check the Suite Tax box on the
Tax subtab
| Feature | Enable Features Subtab |
| Suite Tax | Tax |
| Custom Records | Suite Cloud |
| Custom Transactions | Suite Cloud |
To install the India Localization Suite Tax Engine:
1. Go to Customization > Suite Bundler > Search & Install Bundles.
2. In the Keywords field, enter India Localization Suite Tax Engine.
3. Click Search.
4. Click the link of the SuiteApp with the following details:
■ Name – India Localization Suite Tax Engine
■ Bundle ID – 400562
5. On the Bundle Details page, click Install
NetSuite does not recommend uninstalling the India Localization Suite Tax Engine SuiteApp. When you uninstall a customization SuiteApp, all objects included in that SuiteApp, including any data in these objects, are deleted. Additionally, any custom records you created from the custom record types in the SuiteApp are deleted. To avoid potential data loss, do not uninstall the SuiteApp.
India Localization Suite Tax Engine Limitations
Tax Deduction at Source (TDS) Limitations
- The Tax Deduction at Source (TDS) feature does not support overriding of tax details on vendor bills. Checking the Tax Details Override box and editing tax information under the Tax Details subtab of a vendor bill transaction will result in an error.
- Section codes 194 LBB and 194 LBC are not supported.
- TDS calculation does not support bill credit and vendor prepayment.
- The India Localization Suite Tax Engine SuiteApp considers only the Fiscal Calendar for calculating 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.
Electronic Invoicing for India Limitations
- E-document generation is applicable only for transactions having a maximum of 829-line items.
- E-document generation is not supported 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. - Currently, the India Localization Suite Tax Engine SuiteApp does not support Tax Collected Source (TCS). To generate and certify an e-document, you may use the item type Payments to add TCS to an invoice
Charge tax on advances and prepayments
- The Tax Deduction at Source (TDS) feature does not support overriding of tax details on vendor bills. Checking the Tax Details Override box and editing tax information under the Tax Details subtab of a vendor bill transaction will result in an error.
- TDS calculation does not support bill credit and vendor prepayment.
- GST on vendor prepayment or customer advance receipt is not supported. You can use a journal entry to increase or decrease the tax liability due to these transactions.
Charge tax when you transfer stock between branches or locations
- GST on transfer order is not supported. If you use locations to manage the branches where shipping and receiving branch have different GSTIN, it will not calculate GST. If you use subsidiaries to manage the branches, it will be treated as a sales and purchase transaction and only then will it calculate tax.
- The India Localization Suite Tax 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.
- GST tax during item fulfilment is not supported.
Charge Cess on GST
Goods and Services Tax (GST) Limitations
- Kerala flood cess or state specific cess is not supported.
- GST on vendor prepayment or customer advance receipt is not supported. You can use a journal entry to increase or decrease the tax liability due to these transactions.
- GST on transfer order is not supported. If you use locations to manage the branches where shipping and receiving branch have different GSTIN, it will not calculate GST. If you use subsidiaries to manage the branches, it will be treated as a sales and purchase transaction and only then will it calculate tax.
- The India Localization Suite Tax 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.
- GST tax during item fulfilment is not supported.
- The SuiteApp does not support tax exemption for Subsidiaries under SEZ (Special Economic Zone).
Operation from SEZ
- The SuiteApp does not support tax exemption for Subsidiaries under SEZ (Special Economic Zone).
- SEZ customers under regular subsidiaries will have a subtype export for invoice and cash sale, and subtype of import for bill.
- SEZ vendor registration type under regular subsidiary will have a doctype of bill of entry. Composite dealer subsidiary will have a doctype of bill of supply.
- SEZWP – Regular supplies made to entities with registration type SEZ and with payment of tax and when total GST in transaction is non-zero. If subsidiary nexus and place of supply are same and customer registration type is SEZ, populated with the value Y.