Vendor Exemption – Things to Note

Vendor Exemption

The Vendor Exemption tax rate rule is used to calculate the tax exemption for a vendor on the basis of their Certificate Number. All tax rules under Vendor Exemption uses the default Vendor Exemption tax type and tax codes sourced from the India Localization SuiteTax Engine SuiteApp. 

Things to note when you are using vendor exemption using the India localization bundle:

1. We configure the vendor exemption rules in Setup > India Localization > TDS Tax Rate Rules and click on Vendor Exemption subtab.
2.  The effective period of a vendor exemption tax rate rule cannot be less than one year due to TDS limitations in NetSuite.
3. To apply a vendor exemption rule to transactions falling under the exemption criteria, you should create the rule before creating transactions in an accounting period. By doing so, the rule is applied to all applicable transactions in an accounting period.
4. TIjournal record for TDS is automatically created when the accumulated bill value exceeds vendor exemption, year level, and document level thresholds.