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

The India Localization SuiteTax Engine SuiteApp has the following limitations for TDS.

The SuiteApp does not support overriding tax details on vendor bills when using the Tax Deduction at Source (TDS) feature. If you check the Tax Details Override box and edit the tax information under the Tax Details subtab of a vendor bill transaction, an error occurs.
The SuiteApp does not support section code 194 LBB and section code 194 LBC.
The SuiteApp does not calculate TDS on bill credit and vendor prepayment transactions.
The 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 SuiteApp does not calculate TDS when the effective period for a vendor exemption tax rate rule is 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 to prevent incorrect tax calculation. After saving the rule, you can approve a bill, preview an approved bill, or save a bill.

The India Localization SuiteTax Engine SuiteApp has the following limitations for GST.

The SuiteApp does not support Kerala flood cess or state specific cess.
The SuiteApp does not calculate GST on vendor prepayment or customer advance receipt. You can use a journal entry to increase or decrease the tax liability due to these transactions.
The SuiteApp does not calculate GST on transfer order transactions.
If you use locations to manage branches where the shipping and receiving branches have different GSTINs, 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.
The SuiteApp does not support GST during item fulfillment.
The SuiteApp does not support tax exemption for subsidiaries under SEZ (Special Economic Zone).
The SuiteApp supports GSTIN by nexus (state level) only in the subsidiary. A subsidiary that has multiple locations and GSTINs in the same nexus is not supported.
HSN and SAC codes for items autopopulates on a transaction record only when creating a transaction through CSV. When you edit a transaction through CSV, the SuiteApp does not autopopulate the codes.

The India Localization SuiteTax Engine SuiteApp has the following limitations for electronic invoicing for India.

The SuiteApp 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.
The SuiteApp does not 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 to generate and certify e-documents.
- Serialized Inventory
- Lot Tracking
  
  To enable the features, go to Set Up > Company > Enable Features and check the check the Serialized Inventory and Lot Tracking boxes on the Items & Inventory subtab.
The SuiteApp allows you to cancel an e–invoice only on the ClearTax website or the Invoice Registration Portal.
If TCS is calculated on the transaction, the SuiteApp does not allow you to delete a transaction with more than 3000 line items.

The India Localization SuiteTax Engine SuiteApp has the following limitations for 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 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 ensures e-document certification is successful when generating e-invoices.