A country-specific update is available for tax thresholds and concession certificates in India in Microsoft Dynamics AX 2012 R2

The direct tax concept is based on the tax threshold. The tax threshold is a level of income where a certain tax percentage or exemption is applied.

In India, the tax threshold is defined as the method of tracking income that is generated from transactions between a buyer and a seller and the income falls under a certain income category that is called "section codes" (for example, Rent; Professional services). The tax threshold determines the tax eligibility and reporting requirements for such transactions.

Certain vendors/customers can present the certificate of lower/nil deduction that is issued by Income Tax Department. This means that up to a certain turnover, the direct tax rate that is applied to the seller for the withholding tax will be lower as specified in the certificate.

To comply with this feature, a country-specific update is available in India in Microsoft Dynamics AX 2012 R2. After you apply this update, you can model different thresholds that include the turnover threshold under a certificate of lower/nil deduction in a tree structure and store the certificate information for different vendors/customers.

Hotfix information

A supported hotfix is available from Microsoft. There is a "Hotfix download available" section at the top of this Knowledge Base article. If you are encountering an issue downloading, installing this hotfix, or have other technical support questions, contact your partner or, if enrolled in a support plan directly with Microsoft, you can contact technical support for Microsoft Dynamics and create a new support request. To do this, visit the following Microsoft website:

https://mbs.microsoft.com/support/newstart.aspx

You can also contact technical support for Microsoft Dynamics by phone using these links for country specific phone numbers. To do this, visit one of the following Microsoft websites:

Partners

https://mbs.microsoft.com/partnersource/support/

Customers

https://mbs.microsoft.com/customersource/support/information/SupportInformation/global_support_contacts_eng.htm

In special cases, charges that are ordinarily incurred for support calls may be canceled if a Technical Support Professional for Microsoft Dynamics and related products determines that a specific update will resolve your problem. The usual support costs will apply to any additional support questions and issues that do not qualify for the specific update in question.