The NetSuite India Localization bundle provides functionality to associate TDS section codes with section-specific Chart of Accounts (COA).
In Setup > Tax > Tax Types, NetSuite allows mapping a default TDS account for the Tax Type “Tax Deducted at Source” by selecting the nexus and TDS account.
In Setup > India Localization > Configuration, under the Tax Deducted at Source subtab, we can select the nexus, section code, and section-specific COA.
Observed Behavior:
When creating vendor bills using sections and nexus as per the Configuration page setup, the posting is happening against the TDS account defined in the Tax Type page instead of the section-specific account defined in the Configuration page.
Previously, the Account Support team suggested enabling the India Custom GL Plugin. However, we are now facing two issues across different NetSuite accounts:
1. In some accounts, even after enabling the Custom GL Plugin, postings still do not go to the section-specific account from the Configuration page.
2. In accounts where postings do occur correctly, the GL impact includes unnecessary lines:
First, a posting to the Tax Type account
Then, a reversal of that posting
Finally, the correct posting to the section-specific account from the Configuration page
Example:
We have 1000 TDS Payable account mapped in the Tax Type page and 1001 TDS Payable – 194J account mapped in the Configuration page for TDS section 194J.
The GL lines in the approved bill show:
Item Expense Account 100 Dr
GST Accounts 20 Dr
1000 TDS Payable Account 10 Cr
1000 TDS Payable Account 10 Dr
1001 TDS Payable - 194J 10 Cr
AP Account 110 Cr
This behavior is confusing because NetSuite documentation states:
“The Tax Type page allows you to map all supported TDS tax types, while the Configuration page is used specifically for mapping the Tax Deduction at Source tax type and lets you include a section code.”
Please clarify why the system is not consistently posting directly to the section-specific account and why additional GL lines are generated in some cases. Additionally, how do we resolve this issue?
