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        <title>Tax Updates - Daily Update</title>
        <link>https://www.taxtmi.com</link>
        <description>One stop solution for Direct Taxes and Indirect Taxes and Corporate Laws in India</description>
        <category>Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services</category>
        <copyright>TaxTMI.Com / MS Knowledge Processing Pvt. Ltd. All rights reserved.</copyright>
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        <ttl>60</ttl>
        <item>
<title>Can GST Authorities Demand Full ERP/Tally Backup During Audit u/s 65 ?</title>
<link>/forum/issue?id=121097</link>
<guid isPermaLink="true">/forum/issue?id=121097</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[The expressed views maintain that audit powers are confined to verification of tax compliance and do not extend to an unrestricted raw backup of accounting systems. They distinguish books and data needed for audit from broader commercial information, including payroll, cost structures and trade secrets. No specific Section 65 precedent is identified, although search-related decisions are generally referred to as supporting limits on demands for commercial data.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Treatment of ITC on Power Plant on Discontinuation of Taxable Manufacturing Activity</title>
<link>/forum/issue?id=121096</link>
<guid isPermaLink="true">/forum/issue?id=121096</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Where a power plant initially used for taxable manufacturing and limited exempt electricity sales is subsequently used solely for exempt electricity generation, ITC attributable to its remaining useful life may require reversal. Rather than reversing the entire original credit, the conservative approach identifies residual credit after giving effect to Rule 43 reversals already made during common use. The residual amount may be calculated capital-goods-wise using the 60-month useful life, subject to verification of the applicable statutory mechanism.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Whether tax audit is required when opting for section 44AD and simultaneously reporting separate commission income in PL?</title>
<link>/forum/issue?id=121095</link>
<guid isPermaLink="true">/forum/issue?id=121095</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Tax audit under section 44AB applies independently of a presumptive-income declaration under section 44AD. Where cash receipts and cash payments exceed 5%, the enhanced audit threshold is unavailable and the normal Rs. 1 crore business-turnover threshold applies. Turnover of approximately Rs. 1.37 crore therefore requires tax audit under section 44AB(a), even where profit is declared above the section 44AD presumptive rate. Separate commission income does not alter the audit consequence arising from business turnover.]]></description>
<category>Income Tax</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>GST implication on cross charge/mortgage provided for related party borrowing</title>
<link>/forum/issue?id=121094</link>
<guid isPermaLink="true">/forum/issue?id=121094</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST treatment of a cross charge or mortgage securing related-party borrowings depends on whether the company has independently undertaken to discharge the borrower's debt. Where the arrangement only creates collateral security over company assets, without a corporate guarantee or equivalent payment obligation, it is security rather than a corporate guarantee. The valuation provisions specifically applicable to corporate guarantees, including Rule 28(2), do not apply merely because a charge or mortgage exists. Executed facility, security and guarantee arrangements require examination for any such undertaking.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Normal business under section 44ad and FNO loss reporting</title>
<link>/forum/issue?id=121093</link>
<guid isPermaLink="true">/forum/issue?id=121093</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Presumptive taxation under section 44AD may apply to an eligible main business with qualifying digital receipts, while futures and options activity may be reported separately as normal business income in ITR-3. Tax-audit exposure for futures and options depends on turnover computed under applicable audit principles, rather than broker-reported figures. Eligibility for presumptive taxation, the nature of the principal business, cash-receipt conditions, and correct computation of derivatives turnover require verification.]]></description>
<category>Income Tax</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Form 140 Gross Amount Reporting When Aggregate TDS Threshold Is Crossed</title>
<link>/forum/issue?id=121087</link>
<guid isPermaLink="true">/forum/issue?id=121087</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Quarterly Form 140 reporting is considered separately from cumulative TDS computation where an aggregate threshold is crossed during the quarter. One view supports reporting only current-quarter payments or credits in Form 140, while reporting catch-up TDS calculated on cumulative payments. Earlier-quarter payments would reconcile through their respective quarterly figures rather than by cumulative re-reporting. The unresolved issue is whether official Form 140 or RPU/FVU instructions expressly permit cumulative-basis TDS to be reported against current-quarter gross payments, creating an apparent higher effective deduction rate.]]></description>
<category>Income Tax</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Goods and Service Tax under Sec-73 and 74</title>
<link>/forum/issue?id=121091</link>
<guid isPermaLink="true">/forum/issue?id=121091</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST rate liability for government civil works turns on the time of supply, rather than solely on delayed payment of a work bill. Completion, measurement, invoicing, return filing and payment dates require examination. A demand for 18% instead of 12% must be tested against the rate applicable when the supply became taxable. Disclosure of turnover in GST returns, GSTR-7 tax-deduction details and income-tax returns is material to any allegation of suppression. A rate dispute alone does not establish the fraud, wilful misstatement or suppression required for Section 74 proceedings, and limitation must also be verified.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Sale of Residential Buildings under Sec-44AD</title>
<link>/forum/issue?id=121092</link>
<guid isPermaLink="true">/forum/issue?id=121092</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Residential property development involving purchase of sites, construction of houses and sale to customers is ordinarily business activity. Where properties are acquired, developed and held for sale, they generally constitute stock-in-trade and the profit is taxable as business income rather than capital gains. Registration in the developer's own name is not determinative. Section 44AD may be considered where eligibility conditions are met, subject to verification of the assessee's status, nature and regularity of activity, holding intention, accounting treatment, and receipt details. GST turnover supports business activity but does not determine the income-tax head.]]></description>
<category>Income Tax</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Limitation under the GST Act. applicability of Suo Motu extension of Supreme Court</title>
<link>/forum/issue?id=121090</link>
<guid isPermaLink="true">/forum/issue?id=121090</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST limitation and the applicability of the Supreme Court's suo motu COVID-19 extension are examined in relation to tax-demand proceedings. Tata Steel Limited v. Union of India considered annual-return extensions and the COVID-19 exclusion in determining the limitation date under Section 73. The discussion distinguishes default-bail protection in S. Kasi from tax-demand limitation, and considers the view in Sahaj Constructions that the extension applied to proceedings before courts and tribunals rather than assessments, reassessments, show-cause notices, or similar tax-authority actions.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Need for registration under CGST Act</title>
<link>/forum/issue?id=121069</link>
<guid isPermaLink="true">/forum/issue?id=121069</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST registration depends on whether personal bank fixed-deposit interest is outside the scope of supply or is an exempt supply includible in aggregate turnover. If the deposits are personal investments and commercial renting is the only GST supply, with tax wholly payable by the registered tenant under reverse charge, the exemption for exclusive reverse-charge supplies supports non-registration. The contrary view includes deposit interest in aggregate turnover, requires registration on crossing the threshold, and treats commercial rent as taxable under forward charge after registration.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Unclaimed TDS Credit - AY 2025-26</title>
<link>/forum/issue?id=121089</link>
<guid isPermaLink="true">/forum/issue?id=121089</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Unclaimed TDS credit relating to professional receipts already offered to tax may be sought through rectification under Section 154 where a return processed under Section 143(1) omitted TDS reflected in Form 26AS or AIS. TDS credit is linked to assessment of the corresponding income under Section 199 read with Rule 37BA. The rectification request should provide a TDS-wise reconciliation showing the deductor, corresponding professional receipt, inclusion in presumptive turnover, income offered, and credit claimed.]]></description>
<category>Income Tax</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Limitation for GSTAT appeal filing</title>
<link>/forum/issue?id=121088</link>
<guid isPermaLink="true">/forum/issue?id=121088</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[COVID-period exclusion from limitation may apply to GST appellate proceedings and requires a complete calculation of the order date, communication date, residual filing period, condonable delay, filing date, and appellate rejection date. An appeal rejected on limitation without considering the exclusion may be within time, condonably delayed, wrongly computed, or time-barred. The appropriate course may be a further statutory appeal or constitutional writ remedy, depending on the chronology and the appellate order.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>GST query related to Section 15 (3) of CGST Act, 2017</title>
<link>/forum/issue?id=121083</link>
<guid isPermaLink="true">/forum/issue?id=121083</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST valuation depends on whether a referral fee is a genuine reduction in consideration for restaurant supplies or consideration for a distinct referral service. A referral payment cannot be treated as a trade discount merely by contractual relabelling. The agreement, customer invoice, commercial records and accounting treatment must consistently reflect an actual reduction in selling price. Payment flow, contractual obligations and invoice structure determine whether the amount qualifies under Section 15(3) or constitutes consideration for a separate supply.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>MOOWR Scheme Registration through ICEGATE - Whether Any Further Action Required After Online Application Submission?</title>
<link>/forum/issue?id=121082</link>
<guid isPermaLink="true">/forum/issue?id=121082</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[MOOWR registration through ICEGATE requires post-filing monitoring and readiness for departmental scrutiny; successful online submission does not itself constitute approval. No duplicate physical application is ordinarily required solely because an online application has been filed, but supporting materials and originals should remain available. Premises should be prepared for possible physical verification, and duty-deferred MOOWR operations should not commence until requisite permission or licensing and associated formalities have been completed.]]></description>
<category>Customs</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Taxability under GST of a Shareholder's Right to Require Purchase of Shares (Put Option)</title>
<link>/forum/issue?id=121085</link>
<guid isPermaLink="true">/forum/issue?id=121085</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Grant of a contractual put option allows specified holders of economic-rights equity shares to require another shareholder group to purchase their shares on stipulated terms, without separate consideration payable to the company. GST taxability depends on whether this right to sell is a supply of services. The transaction is characterised as non-taxable because it concerns securities, which are excluded from the definitions of both goods and services.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Whether Interest is Payable on ITC Reversal under Rule 37 when Sufficient Balance Exists in Electronic Credit Ledger?</title>
<link>/forum/issue?id=121081</link>
<guid isPermaLink="true">/forum/issue?id=121081</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Interest on ITC reversal for non-payment to vendors within 180 days is not considered payable where the credit was availed but never utilised for output tax payment and sufficient balance remained in the Electronic Credit Ledger. Interest for wrongly availed ITC is treated as arising only where the credit is both wrongly availed and utilised. Rule 88B prescribes the methodology for interest computation.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Supply to SEZ unit WITH PAYMENT OF TAX</title>
<link>/forum/issue?id=121077</link>
<guid isPermaLink="true">/forum/issue?id=121077</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Zero-rated supplies to an SEZ Unit or SEZ Developer for authorised operations may be made under a letter of undertaking without payment of integrated tax, with refund of eligible unutilised input tax credit, or on payment of integrated tax followed by supplier-side refund. The discussion contrasts a view that tax is separately charged and subject to the Rule 89(2)(f) non-collection declaration with a view that the SEZ pays only the agreed supply value. Both approaches require authorised operations and prescribed SEZ endorsement.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Interest on non-compliance with Rule 86B</title>
<link>/forum/issue?id=121078</link>
<guid isPermaLink="true">/forum/issue?id=121078</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Rule 86B non-compliance raises whether use of eligible ITC for the entire output tax liability creates unpaid tax for Section 50 interest. One view treats the breach as a mode-of-utilisation restriction rather than delayed tax payment, unless a statutory basis deems the cash portion unpaid. Sufficient Electronic Cash Ledger funds credited before the due date and continuously available may support a defence against compensatory interest, subject to ledger chronology and jurisdictional views. A contrary view distinguishes cash-ledger deposits from actual tax payment and treats the prescribed cash portion as payable.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>RoDTEP / Duty Drawback Benefits for Exports to Nepal  Bhutan Should be Governed by FTP or Respective Customs Notifications in Case of Inconsistency?</title>
<link>/forum/issue?id=121080</link>
<guid isPermaLink="true">/forum/issue?id=121080</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Eligibility for Duty Drawback and RoDTEP on exports to Nepal and Bhutan is governed by the respective Customs notifications where specific conditions differ from amended FTP provisions. INR-denominated settlement permitted under the FTP does not itself confer export-incentive entitlement. Drawback and RoDTEP conditions operate independently under the Customs framework and continue unless the relevant notifications are amended. The FTP governs the permissibility and manner of export and payment, whereas Customs notifications determine admissibility of fiscal benefits.]]></description>
<category>Customs</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>DTA removal of duty paid goods by SEZ Developer after exit of Unit</title>
<link>/forum/issue?id=121065</link>
<guid isPermaLink="true">/forum/issue?id=121065</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[DTA removal of identifiable goods taken over by an SEZ Developer after payment of applicable customs duty and IGST through a Bill of Entry for home consumption may not create a second customs-duty or customs-IGST incidence if the goods were not processed or transformed in the SEZ. Rule 49(4)(a) permits removal of already-duty-paid goods without duty where identity is established, and relevant Unit procedures apply to Developers. Depreciation need not apply if this relief is available. A later sale or supply may independently attract GST, and clearance requires permission, records and applicable DTA documentation.]]></description>
<category>Customs</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Interstate Sale by Composition Dealer</title>
<link>/forum/issue?id=121066</link>
<guid isPermaLink="true">/forum/issue?id=121066</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST composition dealers cannot directly make inter-State outward sales of goods while remaining under the composition scheme. Movement of goods from one State to another pursuant to sale attracts the restriction, and payment or invoicing arrangements cannot cure it. A customer or payment originating in another State does not itself make a supply inter-State; actual delivery, movement and place-of-supply facts govern. A genuine independent reseller may separately make an inter-State sale, while businesses undertaking direct inter-State sales should operate under the regular GST scheme.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Applicability of GST exemption under Entry 66(a) to clinical postings provided by a specialised hospital/educational institution to students of another educational institution</title>
<link>/forum/issue?id=121067</link>
<guid isPermaLink="true">/forum/issue?id=121067</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST exemption under Entry 66(a) for mandatory clinical postings may apply where the posting is part of a curriculum leading to a qualification recognised by law and the training institution is approved for that component. The further requirement that services be provided "to its students" is significant. Exemption is more defensible if students are formally posted, attached or registered with the institution and receive structured training, supervision, attendance monitoring or assessment. Mere clinical exposure for students of another institution without a formal academic or regulatory relationship creates a litigation-prone position.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Duty Drawback  RoDTEP claim on post export with Free shipping Bill</title>
<link>/forum/issue?id=121068</link>
<guid isPermaLink="true">/forum/issue?id=121068</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Post-export amendment of a Free Shipping Bill may be pursued under section 149 of the Customs Act, 1962, where documentary evidence supporting eligibility existed at export. Duty Drawback claims have comparatively stronger support for conversion or processing of Free Shipping Bills, although departmental time limits may be raised. RoDTEP is more fact-sensitive because its declaration is ordinarily required in the Shipping Bill. Lack of AD Code registration is not necessarily a substantive disqualification, and contemporaneous records should support the reasons for filing under a Free Shipping Bill.]]></description>
<category>Customs</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Generating response Copilot said: GST Advance Received - Rule 50(ii) Inter-State Supply but Place of Supply Unknown for GSTR-1 Reporting</title>
<link>/forum/issue?id=121079</link>
<guid isPermaLink="true">/forum/issue?id=121079</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Advances received where the nature of supply is indeterminable are treated as inter-State supplies and liable to IGST, but no deemed State is prescribed for the place of supply. GSTR-1 nevertheless requires a State selection. Where identifiable, the recipient's State may be reported if the prospective supply can reasonably be linked to it, subject to applicable PoS provisions and facts. If no actual or reasonably connected State can be identified, no express default State exists; the advance should later be reconciled with the actual PoS.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>GST | Refund or Adjustment of Tax Paid Pursuant to Favourable Advance Ruling</title>
<link>/forum/issue?id=121063</link>
<guid isPermaLink="true">/forum/issue?id=121063</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST paid on transactions subsequently found exempt or non-taxable under a favourable advance ruling may generally be recovered through a refund claim under Section 54, subject to the two-year limitation period and unjust-enrichment requirements. Historical GST should not ordinarily be adjusted by reducing liability in a later GSTR-3B, as this does not generally substitute for the statutory refund process. Where limitation has expired, constitutional or writ remedies may require fact- and jurisdiction-specific examination.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Applicability of GST under RCM on CFO renewal fees paid to KSPCB</title>
<link>/forum/issue?id=121074</link>
<guid isPermaLink="true">/forum/issue?id=121074</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[CFO renewal fees may be treated as exempt where the Pollution Control Board's consent-related regulatory service is linked to environmental protection, a municipal function under Article 243W; on that view, reverse charge does not apply and the taxpayer should preserve payment, consent and fee records supporting the exemption. A contrary interpretation treats CFO as an authorisation rather than registration, making GST payable under reverse charge with self-invoice and payment-voucher compliance. Treatment depends on the statutory nexus, characterisation of the service and relevant tax period.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Section 132 proceedings needs to be quashed after Closure of Peoceedings Recorded by GST department</title>
<link>/forum/issue?id=121073</link>
<guid isPermaLink="true">/forum/issue?id=121073</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Closure or dropping of GST adjudication under Section 74 does not automatically end prosecution under Section 132, since the proceedings are legally distinct. A separate judicial order is generally required to terminate the criminal case. Where the closure order exonerates the assessee on merits and rejects the factual basis of alleged evasion, fraud, or suppression, it may be produced with DRC-03, payment evidence, and departmental communications to seek discharge or closure, followed by quashing if necessary. Compounding under Section 138 is an alternative settlement mechanism, not an automatic requirement.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Interest on gst penality refund</title>
<link>/forum/issue?id=121071</link>
<guid isPermaLink="true">/forum/issue?id=121071</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Interest is payable from the date of payment to the date of refund where an amount paid as appellate pre-deposit becomes refundable following an appellate order. Form GST RFD-01 may be filed electronically with the relevant orders, payment details and a computation that separately identifies the refund, appellate pre-deposit and interest claimed. Interest on other appellate-order refunds may apply where the refund is delayed beyond the prescribed period after receipt of the refund application. Refund-processing jurisdiction should be verified before pursuing the claim.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Section 130 invoked after tax, interest and penalty paid under section 74a</title>
<link>/forum/issue?id=121072</link>
<guid isPermaLink="true">/forum/issue?id=121072</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST confiscation proceedings under Section 130 may be challenged where excess or unaccounted stock has already been investigated, valued, subjected to tax, interest and penalty under Section 74A, and released. Mere excess stock is insufficient by itself to support confiscation, and an alleged intent to evade tax requires supporting evidence. A subsequent confiscation notice requires an independent statutory basis where no fresh material has emerged. Any additional penalty for non-recording of stock must identify the precise contravention and supporting evidence.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Depreciation Treatment on assets received in kind for specific purpose (Corpus donation)</title>
<link>/forum/issue?id=121070</link>
<guid isPermaLink="true">/forum/issue?id=121070</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Depreciation on an asset received in kind through a corpus or specific-purpose donation should ordinarily be charged to the Income  Expenditure Account, with accumulated depreciation reducing the asset's carrying value. The corpus or specific-purpose fund should remain separately presented according to donor terms and accounting policy. Direct adjustment of depreciation against that fund is appropriate only where donor restrictions, governing terms and the applicable accounting framework specifically permit it. Tax restrictions on depreciation as application of income remain distinct from book accounting treatment.]]></description>
<category>Corporate Laws</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>sec 44ad and sec 44ab inter change</title>
<link>/forum/issue?id=121062</link>
<guid isPermaLink="true">/forum/issue?id=121062</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Section 44AD may be adopted where its eligibility conditions and turnover threshold are satisfied, notwithstanding tax audits in earlier years. Section 44AD eligibility and section 44AB audit liability are separate tests. If later turnover exceeds the presumptive-tax threshold, normal computation and audit may apply without that statutory exit itself attracting the five-year restriction. The restriction may apply where an otherwise eligible assessee declares profit below presumptive income. The corresponding provision under the Income-tax Act, 2025 retains this restriction.]]></description>
<category>Income Tax</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Refund arising due to Inverted Duty Structure</title>
<link>/forum/issue?id=121058</link>
<guid isPermaLink="true">/forum/issue?id=121058</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Inverted duty structure refunds may cover eligible unutilised SGST input tax credit under section 54(3) and Rule 89(5), without conversion into IGST or CGST. However, an SGST ledger balance is not automatically refundable: entitlement must be calculated period-wise under the prescribed formula after deducting refunds already claimed. For pending RFD-01 applications, verify tax-head-wise ledger debits, refund amounts and processing status before filing another claim, withdrawing or refiling. Claims for subsequent periods may include eligible SGST, while duplicate claims for the same period may face procedural restrictions.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Query Regarding ITR 3 for NRI's</title>
<link>/forum/issue?id=121064</link>
<guid isPermaLink="true">/forum/issue?id=121064</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Permanent-establishment disclosure in ITR-3 for a non-resident independent consultant working from India is fact-sensitive. Working from a residence does not automatically create a PE. Relevant factors include dedicated premises, use of the address for GST or invoicing, client access, authority to conclude contracts, employees or subcontractors, separate office premises, business continuity and home-office expenses. PE and the India-US DTAA fixed-base concept for independent professional services are distinct. Section 92F should not be mechanically applied outside its transfer-pricing context. The position should be supported by contemporaneous documentation and treaty-residence analysis where relevant.]]></description>
<category>Income Tax</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Export of Services - Remittance recieved on personal Savings account.</title>
<link>/forum/issue?id=121047</link>
<guid isPermaLink="true">/forum/issue?id=121047</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Export proceeds for software services must be realised and routed through an Authorised Dealer bank, but no identified RBI/FEMA provision expressly requires a sole proprietor to use a Current Account. No identified FEMA provision or RBI notification expressly prohibits correction of an erroneous purpose code where supporting evidence establishes that the remittance relates to software export services. A mismatch between family-maintenance and software-services classification may affect export documentation and compliance. The bank should be asked in writing to record the correct purpose and cite any regulatory basis for refusing correction.]]></description>
<category>Corporate Laws</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Classification of gst for our shop</title>
<link>/forum/issue?id=121061</link>
<guid isPermaLink="true">/forum/issue?id=121061</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST classification may treat an outlet preparing juices and ice cream in-house and serving customers for immediate on-premises consumption as restaurant service under SAC 9963. The position is supported by seating, direct service on order, and absence of sealed products, wholesale supplies, online deliveries, or packaged takeaway sales. Restaurant service is described as taxable at 5 per cent without input tax credit. Classification may change where sealed takeaway containers, packaged retail products, distributor supplies, or wholesale sales are involved. In-house manufacture may distinguish the activity from an ice cream parlour selling already manufactured ice cream, but interpretational risk remains.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>GST applicability on leased out property for residential purpose</title>
<link>/forum/issue?id=121057</link>
<guid isPermaLink="true">/forum/issue?id=121057</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Residential property leased to a GST-registered business entity as contractual lessee is subject to reverse charge, notwithstanding residential occupation by its consultant and family. The landlords' GST registration status does not change this treatment. Input tax credit on reverse-charge tax is uncertain where the accommodation is used personally, unless a documented business necessity under the consultancy arrangement establishes a sufficient business nexus. A direct lease to the consultant personally for family residence may ordinarily remain exempt if the business entity is not the actual recipient and the contractual and payment arrangements support that position.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>GST taxability in case of supply of security gaurd services--Reverse charge or forward charge</title>
<link>/forum/issue?id=121054</link>
<guid isPermaLink="true">/forum/issue?id=121054</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST treatment of security personnel services depends on the supplier's status and the recipient's registration. A private limited company, as a body corporate, is liable to charge and pay GST under forward charge. A proprietorship firm supplying security personnel services to a registered person is covered by reverse charge, with GST payable by the recipient. If the proprietorship supplies to an unregistered recipient, GST applies under forward charge and is payable by the supplier.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>GST on recovery of electricity charges under lease and PPA</title>
<link>/forum/issue?id=121048</link>
<guid isPermaLink="true">/forum/issue?id=121048</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Electricity charges recovered by a lessor may be treated as part of a composite supply of renting where electricity is incidental to use of leased premises, particularly where no separate electricity agreement exists or a markup is charged. Separate contracting, billing and dedicated metering may support an independent exempt supply of electrical energy, though this remains disputed where the lessor procures electricity onward. Recovery at actual cost does not automatically qualify for pure-agent treatment, which requires satisfaction of prescribed conditions and may be difficult where the lessor is the contractual recipient.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Reclaim of ITC (through TRAN-1) after reversal - redrafted issue id 121043</title>
<link>/forum/issue?id=121046</link>
<guid isPermaLink="true">/forum/issue?id=121046</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Restoration of eligible transitional ITC through accepted TRAN-1 filing, after an earlier book reversal caused by a technical glitch, may be credited to the Statement of Profit and Loss as reinstatement of a previously written-off asset. Its presentation as "Other Income" can produce a GSTR-9C reconciliation difference but does not itself make the amount taxable turnover. GST liability requires a taxable supply; the accounting restoration, absent goods or services, consideration, or deemed supply, is characterised as an accounting adjustment. Separate allegations concerning wrongful availment or excess utilisation require independent examination.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Foreign exchange fluctuation income booked</title>
<link>/forum/issue?id=121044</link>
<guid isPermaLink="true">/forum/issue?id=121044</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Unrealised foreign exchange translation gains recognised on year-end restatement under AS-11 or Ind AS 21 are described as notional accounting adjustments, not consideration for a supply. Their disclosure in GSTR-9C serves reconciliation between financial statements and GST returns and does not itself establish taxability. The discussion distinguishes such unrealised gains from realised gains on settlement of an underlying taxable supply, which may affect that supply's value. A response should explain the accounting treatment and demonstrate that the reported amount is a non-supply reconciliation item.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Reclaim of ITC (through TRAN-1) after reversal</title>
<link>/forum/issue?id=121043</link>
<guid isPermaLink="true">/forum/issue?id=121043</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[A credit to the profit and loss account arising from reclaimed transitional input tax credit, after its approved availment through TRAN-1, does not by itself constitute a supply liable to GST. GST liability requires a taxable supply, and the accounting entry should be established as an input tax credit reclaim rather than consideration arising from a supply. The clarification states that the credit availed through TRAN-1 received departmental approval.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Delayed LUT Application and Filing of Pending GST Returns for Export of Services</title>
<link>/forum/issue?id=121042</link>
<guid isPermaLink="true">/forum/issue?id=121042</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Delayed LUT filing for genuine export of services is presented as a condonable procedural lapse where export proceeds comply with applicable FEMA/RBI requirements. Pending GSTR-1 and GSTR-3B returns may report the invoices as zero-rated supplies without IGST payment, subject to acceptance or regularisation of the delayed LUT. Export and remittance records, including foreign inward remittance or bank realisation evidence, should be retained for refund processing, assessment, audit, or scrutiny.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>TRANSFERRING CASES TO THE PRINCIPAL BENCH</title>
<link>/forum/issue?id=121060</link>
<guid isPermaLink="true">/forum/issue?id=121060</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Pending GST appeals before two or more State Benches may be placed before the Principal Bench where an identical question of law arises and the President of GSTAT is satisfied of that condition. Transfer is not automatic and should be sought through an application or representation to the President, rather than by withdrawal and re-filing. The request should provide appeal details, identify the common legal issue, and explain why uniform adjudication is required. Applications may also be filed or mentioned before the respective pending State Benches or Registries.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Taxability on Issue of Right Issue of Shares by Unlisted Public Company</title>
<link>/forum/issue?id=121056</link>
<guid isPermaLink="true">/forum/issue?id=121056</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[A bona fide proportionate rights issue to existing shareholders, even at a price below prescribed fair market value, is presented as generally outside Section 92 where no real economic accretion arises. The shareholder's proportionate interest remains substantially unchanged, and the apparent benefit in newly allotted shares is offset by dilution in the existing holding. This position does not automatically extend to disproportionate allotments, subscriptions following renunciation or non-exercise of rights, or arrangements transferring economic value to selected shareholders.]]></description>
<category>Income Tax</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>TDS on land property purchase Form-141 related query</title>
<link>/forum/issue?id=121055</link>
<guid isPermaLink="true">/forum/issue?id=121055</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Form 141 reporting for joint property purchases requires total stamp-duty value and total sale consideration to be entered for the entire property. Proportionate stamp-duty value is calculated using both the buyer's and seller's ownership shares. The amount paid or credited must reflect the actual payment made by the relevant buyer to the relevant seller. Buyer-seller combinations should not be automatically allocated equally where the sale deed records a different payment or credit arrangement.]]></description>
<category>Income Tax</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>IMS Utility Error in Json structure validation</title>
<link>/forum/issue?id=121034</link>
<guid isPermaLink="true">/forum/issue?id=121034</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST IMS JSON upload validation issues may occur when a large volume of line items is processed through the offline utility and the portal reports a JSON-structure error without an error file. Suggested measures include uploading only entries proposed for rejection or pending treatment, testing a reduced set of line items, and downloading the JSON file and offline utility together before input tax credit verification. The process was ultimately completed using software.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Notice issued by SGST against DRC-01A u/s 74.</title>
<link>/forum/issue?id=121052</link>
<guid isPermaLink="true">/forum/issue?id=121052</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Input tax credit following retrospective cancellation of a supplier's GST registration depends on whether the recipient can establish a genuine transaction and compliance with credit conditions. Original invoices, e-way bills and timely bank payment may support the claim but may not alone prove actual receipt of goods. The recipient should provide stock records, purchase ledgers, goods-receipt notes, consumption or sale records, and delivery evidence. Cancellation from the supplier's initial registration date may invite stricter scrutiny, with inadequate proof creating exposure to reversal of credit, interest and penalty.]]></description>
<category>VAT</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Renewal of application or Fresh Registration - Delay in filing Form 10AB</title>
<link>/forum/issue?id=121053</link>
<guid isPermaLink="true">/forum/issue?id=121053</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[Delayed charitable-trust registration renewal may be filed as an application with delay, supported by a condonation petition, founder's death certificate, trustee-appointment resolution, and evidence of administrative disruption. The commentary identifies Form 105 as the replacement for Form 10AB after transition to the Income-tax Act, 2025, while noting continued relevance of legacy condonation mechanisms through transitional provisions. Death and consequential management change may support condonation, but relief is discretionary and requires proper documentation.]]></description>
<category>Income Tax</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>INCOME TAX TDS ON GOODS SECTION: 393(1) SI.NO. 8(ii)</title>
<link>/forum/issue?id=121045</link>
<guid isPermaLink="true">/forum/issue?id=121045</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[TDS on purchase of goods applies only where the purchaser meets the prescribed turnover or gross-receipts threshold in the immediately preceding financial year. A newly incorporated company with no prior-year turnover does not qualify as an eligible buyer in its first financial year. Purchases exceeding the applicable threshold, including fixed assets or capital goods, do not independently trigger TDS. The possible inclusion of fixed assets within "goods" becomes relevant only after buyer eligibility is established.]]></description>
<category>Income Tax</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
        <item>
<title>Classification of Printing of Content in Public Domain - Whether goods or services?</title>
<link>/forum/issue?id=121041</link>
<guid isPermaLink="true">/forum/issue?id=121041</guid>
<pubDate>Thu, 03 Sep 2026 04:01:42 +0530</pubDate>
<description><![CDATA[GST classification of printing public-domain content depends on whether the arrangement is outsourced printing using customer-supplied intangible inputs or a supply of finished books. One view is that public-domain content involves no transfer of proprietary intellectual property or exclusive usage rights; where the printer supplies all physical inputs and finished books, Heading 4901 may apply. An alternative view treats custom-made books supplied solely to a customer as printing services under Heading 9989. Contractual terms, supply arrangements and composite-supply considerations remain material.]]></description>
<category>GST</category>
<category>Discussion-Forum</category>
<category>TaxLaws</category>
<category>TaxTMI</category>
        </item>
<item>
<title>TMI Updates - Newsletter dated: September 03, 2026</title>
<link>https://www.taxtmi.com/newsletter?id=09/03/2026</link>
<guid isPermaLink="true">https://www.taxtmi.com/newsletter?id=09/03/2026</guid>
<description><![CDATA[Newsletter for tax updates and legal information]]></description>
<category>Daily Updates</category>
<category>Tax</category>
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