NetSuite Simplification for India Localized Tax

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NetSuite Simplification for India Localized Tax Local Tax Accounting

With its extensive knowledge of local accounting systems, Powersoft's plugin streamlines the taxation process in NetSuite to ensure compliance to all statutory norms while providing users the benefits of automation and improved accuracy.

Powersoft has provided simplification for two local taxes as per the rules:

1. TDS (Tax deducted at source)

Under this heading,

  • The Indian tax rule 288B states that the TDS amount to be deducted needs to be rounded off to the nearest Rupee.
    Accordingly, the plugin algorithm ensures that the TDS computed is rounded off to the nearest rupee.
  • TDS is applicable on Advance Payment made to vendors.
    With the help of the Advance Payment app module, advance payment from vendors is subject to TDS deduction.
  • As per TDS act 194c, TDS application tax percentage is derived based on the type of Item (Services) and the type of vendor (company or HUF).
    Complying to section 194c, the app calculates and generates TDS as per the TDS percentage defined for the appropriate combination of Item and Vendor type.
  • TDS deduction is applicable when an advance payment is made for an Invoice.
    The Advance Payment app module ensures that advance payments made to invoices are subject to TDS calculations.
  • TDS payments made to regulatory authorities should match with the calculated tax amount after rounding-off
    The current functionality in Netsuite allows the matching of tax payment to authorities with the generated TDS amount which is not rounded off. The issue here is that not rounding-off generates a difference between the actual paid tax and the generated TDS amount
    Now the app provides an option to match the calculated TDS amount with the rounded-off tax paid to the authorities
  • TDS Payment needs to be paid as per the tax section
    As required by the tax authorities, the app ensures that TDS payment is done as per the applicable tax section

2. GST (Goods and Services Tax)

  • For a more transparent understanding of how GST is applied, the app provides users with a detailed GST ledger which features a single line for each transaction having multiple columns for relevant tax codes.

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