TDS Limitations
- The Tax Deduction at Source (TDS) feature does not support the 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.
**Section 194LBB is a provision in the Income Tax Act of India that deals with the tax deduction at source (TDS) on income received by a unitholder from a specified investment fund12. The rate of tax is 10% for resident unitholders and as per the rates in force for non-resident or foreign unitholders.
*** Section 194LBC provides for the Tax Deducted at Source (TDS) concerning investment in the securitization trust.
TDS calculation does not support bill credit and vendor prepayment. - The India Localization SuiteTax Engine SuiteApp considers only the Fiscal Calendar for calculating the TDS threshold. When the Multiple Calendars feature is enabled, we must set the Fiscal Calendar as India Fiscal Calendar on the subsidiary record. The fiscal calendar must begin in April.
- The value in the Tax Fiscal Calendar does not affect the TDS threshold calculation.
- The effective period of a vendor exemption tax rate rule cannot be less than a year.
GST Limitations
- Kerala flood cess or state-specific cess is not supported.
- GST on vendor prepayment or customer advance receipt is not supported. We can use a journal entry to increase or decrease the tax liability due to these transactions.
- GST on transfer orders is not supported. If we use locations to manage the branches where the shipping and receiving branches have different GSTINs, it will not calculate GST. If we 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 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.
- GST tax during item fulfillment is not supported.
- The SuiteApp does not support tax exemption for Subsidiaries under SEZ (Special Economic Zone).
Electronic Invoicing 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, we 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.
- The India Localization SuiteTax Engine SuiteApp does not support the cancellation of e–invoices. We can cancel an e–invoice from the ClearTax website or the Invoice Registration Portal.
- We cannot delete a transaction with more than 3000 line items if TCS is calculated on the transaction.