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 the SuiteTax feature, see Known Limitations of SuiteTax.

Tax Deduction at Source (TDS) Limitations

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

The SuiteApp doesn’t let you override tax details on vendor bills when using TDS. If you check the Tax Details Override box and edit tax information under the Tax Details subtab of a vendor bill, you’ll get an error.
The SuiteApp doesn’t support section codes 194 LBB and 194 LBC.
The SuiteApp doesn’t calculate TDS on bill credits or vendor prepayments.
The SuiteApp only uses the fiscal calendar to calculate the TDS threshold. If you enable the Multiple Calendars feature, set the fiscal calendar as India Fiscal Calendar on the subsidiary record. The fiscal year must start in April.

The value in the Tax Fiscal Calendar doesn’t affect TDS threshold calculation.
The SuiteApp doesn't calculate TDS if the effective period for a vendor exemption tax rate rule is less than a year.
If you change the date format in your user preferences, open a TDS tax rule and save it again to avoid incorrect tax calculation. After saving the rule, you can approve, preview, and save a bill.

Goods and Services Tax (GST) Limitations

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

The SuiteApp doesn’t support Kerala flood cess or any state-specific cess.
The SuiteApp doesn’t calculate GST on vendor prepayments or customer advance receipts. You’ll need to use a journal entry to adjust tax liability for these transactions.
The SuiteApp doesn’t calculate GST on transfer order transactions.
If you use locations to manage branches and the shipping and receiving locations have different GSTINs, GST won’t be calculated on a transfer order. If you use subsidiaries for branches, a transfer order is treated as a sales or purchase transaction, and only then will GST be calculated.
The SuiteApp doesn't support GST during item fulfillment.
The SuiteApp doesn't support tax exemption for subsidiaries under SEZ (Special Economic Zone).
The SuiteApp only supports GSTIN by nexus (state level) in the subsidiary. Subsidiaries with multiple locations and GSTINs in the same nexus aren’t supported.
HSN and SAC codes for items only autopopulate on a transaction when you create it through CSV. If you edit a transaction through CSV, the SuiteApp won’t autopopulate the codes.
If you’re customizing the India localization tax engine to update transactions, ensure the India UE GST Transaction user event (UE) script gets triggered with the correct context (Create/Edit/Approve/Cancel). The UE script processes and caches the required data so the tax engine can complete the action successfully.

If you update transactions through a workflow or UE script, the SuiteApp doesn’t trigger the India UE GST Transaction script. For more information, see How User Event Scripts are Executed.

When you use the N/record submitFields function, the SuiteApp triggers the India UE GST Transaction script with XEDIT context.

Electronic Invoicing for India Limitations

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

The SuiteApp generates an e-document based on the number of line items in a transaction. If the transaction line items contains inventory details, you can generate an e-document for only 700-750 line items. In addition, the total number of characters in an e-document can’t be more than 1,000,000. E-document generation works only for transactions with up to 829 line items.
The SuiteApp doesn't generate an e-document for payment and kit items.
If an invoice has lot-numbered or serialized inventory items, you must enable the following features to generate and certify e-documents.
- Serialized Inventory
- Lot Tracking
  
  To enable these features, go to Set Up > Company > Enable Features and check the Serialized Inventory and Lot Tracking boxes on the Items & Inventory subtab.
You can only cancel an e-invoice on the ClearTax website or the Invoice Registration Portal.
If TCS is calculated on a transaction, the SuiteApp won’t let you delete it if it has more than 3,000 line items.

Tax Calculation Limitations for Kit and Package Items

The India Localization SuiteTax Engine SuiteApp has the following limitations for kit and package items.

The following type of transactions don't display kit and package items:
- Purchase Order
- Inventory Transfer
- Inventory Worksheet
- Inventory Adjustment
- Transfer Order
The SuiteApp doesn’t support UQC for kit and package items. Since UQC isn’t available for these, select Services in the India Tax Nature field for those transaction lines. This helps ensure e-document certification works when you generate e-invoices.

Vendor Exemption Limitations

The India Localization SuiteTax Engine SuiteApp has the following limitations for vendor exemption rules.

Vendor Exemption Rule	Vendor Exemption Reconciliation Script	Vendor Exemption Recovery Script
If a customer uses a financial period other than April-March (the India Fiscal Calendar), TDS may be calculated incorrectly.	The Vendor Exemption Reconciliation script is triggered upon creation of a vendor exemption rule. All bills created before the vendor exemption rule are adjusted according to the vendor exemption rule. If this script fails and the customer does not correct the errors, TDS will be incorrect.	Running the recovery script after a period closed or Tax Details Override banner may cause errors when saving records, leading to incorrect TDS calculations.
If a customer uses a financial period other than April-March (the India Fiscal Calendar), TDS may be calculated incorrectly.	The Vendor Exemption Reconciliation script, when triggered by the creation of a vendor exemption rule, will resave existing bills to correct the tax according to the vendor exemption rule. After the script is run, all fields on the vendor exemption rule will be disabled and can't be edited, as their transactions fall under the vendor exemption rule or corresponding TDS rule.	Exceeding usage limits (by using the page without reloading) will halt further processing.
Multiple TDS rate rules are out of scope. If a vendor exemption period overlaps more than one TDS rule, TDS calculations will be incorrect. Examples: Incorrect Calculation: Rule 1: April-August TDS1 (FY2026) Rule 2: September-March TDS2 (FY2026) Vendor Exemption: June-December. Overlaps both rules so calculation will be incorrect. Correct Calculation: Rule: April-March TDS1 (FY2024–2026) Vendor Exemption: June-December (FY2025). Calculation will be correct.	Overridden tax details on transactions may result in incorrect TDS calculations.	Manual intervention is required if there are calculation errors, incorrect rules, or errors caused by other custom scripts on Vendor Bill records.
In a fiscal year, a TDS rule can have multiple vendor exemption rules for different vendors with the same section code, but a vendor exemption rule should be linked to only one TDS rule.	After triggering the Vendor Exemption Reconciliation script, you must wait until script is fully ran before creating another vendor exemption rule or creating, modifying, or deleting transactions under the affected vendor exemption TDS rule.	For older financial year transactions, TDS may be affected; ensure a corresponding TDS rule exists for vendor exemption cases.
If multiple TDS rules are present in a financial year, you can't create a rule.	Script running status can be checked through email or by going to Customizations > Scripting > Map/Reduce Script Status > IN MR TDS Recovery (customdeploy_in_mr_tds_recovery).	After clicking the update button on the Verify TDS Amount page, wait for the script to finish running before performing further updates or modifying related transactions. Check script status through email or at Customizations > Scripting > Map/Reduce Script Status > IN MR TDS Recovery (customdeploy_in_mr_tds_recovery).
Multiple period slab rates in a period range vendor exemption rule are out of scope. For vendor exemption rules created with type Period Ranges, if multiple lines are added, only the first line’s tax rate, effective from, and valid until will be considered. Vendor exemption with period ranges should contain only one line.	The Vendor Exemption Reconciliation script is triggered only in the UI context.	Minor decimal discrepancies may occur if tax rates include decimals.
If a vendor has multiple Indian subsidiaries with different financial year periods (other than April-March), the primary subsidiary’s financial year is given first priority. If the primary subsidiary is not India, the financial year period of the first-added subsidiary is considered.		The recovery tool applies only to TDS and VE calculations; it does not support Surcharge, Education Cess, or Secondary Education Cess.
If a vendor exemption rule is created with incorrect details, it should be inactivated. You must then create a new rule with correct data and, after that, can delete the inactivated rule.
For vendor exemption bills, when the user resaves the transaction, the tax rate will be updated according to the latest tax rate.

Vendor Exemption Rule

Vendor Exemption Reconciliation Script

Vendor Exemption Recovery Script

If a customer uses a financial period other than April-March (the India Fiscal Calendar), TDS may be calculated incorrectly.

The Vendor Exemption Reconciliation script is triggered upon creation of a vendor exemption rule.

All bills created before the vendor exemption rule are adjusted according to the vendor exemption rule.

If this script fails and the customer does not correct the errors, TDS will be incorrect.

Running the recovery script after a period closed or Tax Details Override banner may cause errors when saving records, leading to incorrect TDS calculations.

If a customer uses a financial period other than April-March (the India Fiscal Calendar), TDS may be calculated incorrectly.

The Vendor Exemption Reconciliation script, when triggered by the creation of a vendor exemption rule, will resave existing bills to correct the tax according to the vendor exemption rule.

After the script is run, all fields on the vendor exemption rule will be disabled and can't be edited, as their transactions fall under the vendor exemption rule or corresponding TDS rule.

Exceeding usage limits (by using the page without reloading) will halt further processing.

Multiple TDS rate rules are out of scope. If a vendor exemption period overlaps more than one TDS rule, TDS calculations will be incorrect.

Examples:

Incorrect Calculation:
- Rule 1: April-August TDS1 (FY2026)
- Rule 2: September-March TDS2 (FY2026)
- Vendor Exemption: June-December. Overlaps both rules so calculation will be incorrect.
Correct Calculation:
- Rule: April-March TDS1 (FY2024–2026)
- Vendor Exemption: June-December (FY2025).
  
  Calculation will be correct.

Overridden tax details on transactions may result in incorrect TDS calculations.

Manual intervention is required if there are calculation errors, incorrect rules, or errors caused by other custom scripts on Vendor Bill records.

In a fiscal year, a TDS rule can have multiple vendor exemption rules for different vendors with the same section code, but a vendor exemption rule should be linked to only one TDS rule.

After triggering the Vendor Exemption Reconciliation script, you must wait until script is fully ran before creating another vendor exemption rule or creating, modifying, or deleting transactions under the affected vendor exemption TDS rule.

For older financial year transactions, TDS may be affected; ensure a corresponding TDS rule exists for vendor exemption cases.

If multiple TDS rules are present in a financial year, you can't create a rule.

Script running status can be checked through email or by going to Customizations > Scripting > Map/Reduce Script Status > IN MR TDS Recovery (customdeploy_in_mr_tds_recovery).

After clicking the update button on the Verify TDS Amount page, wait for the script to finish running before performing further updates or modifying related transactions.

Check script status through email or at Customizations > Scripting > Map/Reduce Script Status > IN MR TDS Recovery (customdeploy_in_mr_tds_recovery).

Multiple period slab rates in a period range vendor exemption rule are out of scope.

For vendor exemption rules created with type Period Ranges, if multiple lines are added, only the first line’s tax rate, effective from, and valid until will be considered.

Vendor exemption with period ranges should contain only one line.

The Vendor Exemption Reconciliation script is triggered only in the UI context.

Minor decimal discrepancies may occur if tax rates include decimals.

If a vendor has multiple Indian subsidiaries with different financial year periods (other than April-March), the primary subsidiary’s financial year is given first priority.

If the primary subsidiary is not India, the financial year period of the first-added subsidiary is considered.

The recovery tool applies only to TDS and VE calculations; it does not support Surcharge, Education Cess, or Secondary Education Cess.

If a vendor exemption rule is created with incorrect details, it should be inactivated. You must then create a new rule with correct data and, after that, can delete the inactivated rule.

For vendor exemption bills, when the user resaves the transaction, the tax rate will be updated according to the latest tax rate.

Tax Deduction at Source (TDS) Limitations

Goods and Services Tax (GST) Limitations

Electronic Invoicing for India Limitations

Tax Calculation Limitations for Kit and Package Items

Vendor Exemption Limitations

Related Topics