Q. WHETHER A GST DEALER REGISTERED UNDER COMPOSITION SCHEME HAS TO PAY RCM ON SHOP RENT AND SECURITY SERVICES
Ans.
RCM on Rent: Composition taxpayers are excluded from RCM on renting of immovable property effective January 16, 2025, under Notification No. 07/2025-Central Tax (Rate).
RCM on security: Not applicable. Entry in itself exempt dealers registered u/s 10.
Q. For Example Client has received notice for 26qb filing .However same is not applicable as registrar has inadvertently shown the registered lease deed transaction as Purchase of immovable property.However form 26qc will be applicable and tds is not deducted by client.please suggest how to reply
Ans.
In such a case, the reply should clearly explain that the notice under Section 194-IA (Form 26QB) is misconceived because the transaction is not a purchase of immovable property, but a lease transaction, which is covered by Section 194-IB/194-I, as applicable, requiring Form 26QC instead of Form 26QB.
Q. Wheather long term capital gain on sale of shares by daughter in law (of shares gifted by father in law to daughter in law ) be taxed in the hands of father in law or daughter in law. as per Explanation 3 of section 64 only interest from business / profit from business should be taxed in the hands of father in law .
Pl. clearify.
Ans.
LTCG should be computed on sale of shares and clubbed in father-in-law’s return. Gift itself is not taxable if received from a relative.
Q. In case of salaried person, if ITR filed before 31july 2024 but verified on 22 september 2024. In form 16 I opted old regime and paid taxes accordingly after deduction claimed.
Ans.
ITR filed before 31 July 2024 but verified on 22 September 2024
Since verification was done after 30 days, the date of furnishing of return will be treated as 22 September 2024, not the original upload date. The Income-tax portal FAQ states that if return is uploaded within due date but verified after 30 days, the verification date is treated as the filing date and late-filing consequences follow.
Therefore, for AY 2024-25, it may be treated as a belated return. If old regime option/deductions were claimed in the original filing, CPC may deny/adjust deductions if the system treats the return as filed after due date. However, since Form 16/TDS was under old regime and return was uploaded before 31 July 2024, a rectification/condonation representation may be explored if demand arises.
Q. Is there any high court judgement favouring department in case where the assesse has not produced any document in front of adjudicating authority but has taken relief by submitting the documents directly to the appeal authority
Ans.
There is no such judgment were it had been mentioned specifically that taxpayer had not given reply and submitted documents in front of the AA and got relief from court to submit before the Appeal authority. From professional point of view, file an appeal and quote: no opportunity of being heard was provided and appellate authority are listening to cases where there is expartee order.
Q. WE MISTAKENLY EXCESS CLAIMED IGST ON IMPORT IN FY 2025-26 NOW IN FY 2026-27, HOW TO REVERSE THAT IGST ON IMPORT? PLEASE GUIDE STEP BY STEP
Ans.
The excess claimed IGST in case of import can be reversed via filing of DRC 03 u/s 74A(8) and in remarks mentioned the reversal of ITC on account of import of goods.
Q. Show cause Notice receive REG-17 reason is six months gstr-3b nil filed
Kya GST no ko cancelled ho gye Ga Kya
Ans.
As per our opinion, filing of nil returns means that business has not commenced. Now you need to check the type of registration. If the RC taken is voluntary, in that case as per the Section 29(2)(d), GST RC can be cancelled. However if you have the proper justification that the reason for filing of nil return, the cancellation SCN can be dropped.
