We are currently working with Dynamics 365 Finance & Operations, and we've identified a requirement to enable India-specific tax functionalities—specifically Withholding Tax (TDS/TCS) forms and fields—for one of our non-India legal entities.
🎯 Objective:
We want to use the India localization tax functionality (TDS/TCS fields in the Withholding Tax forms) in our specific legal entity, even though it is not registered under the India localization (Country/Region ≠ IN).
📝 Requirement:
Use existing India-specific fields in the Withholding Tax setup form.
Ensure these are available during invoice posting and tax calculation.
Apply this only to our targeted legal entity, not globally.
⚠️ Current Limitation:
D365 F&O restricts these localization features to entities with Country/Region = IN.
As a result, the TDS/TCS fields and logic do not appear in our required legal entity.
⚠️ Technical Note:
We have attempted to implement this through backend changes and standard extension patterns, but the system is not allowing extensions on this form or its underlying tables. We are currently unable to customize or extend it using supported development approaches.
📌 Request:
Is there a supported workaround, feature flag, or config option to enable India tax features in a non-India entity?
Can this be achieved via a localization override, custom feature, or Microsoft-provided hotfix?
If not, should we raise a support ticket or log this as a feature enhancement request?
What is the country of your non India legal entity? Are there localizations for that country that you need to use? If not, you can go to the Legal entity form and change the field Localized functionality region to India. You can only change it when there are no transactions posted.
In case you depend on other localizations, it will require a customization to extend the India tax features for an additional Country.
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