In Reply To :

GST QUERY RELATED TO REFUND APPLICATION

Yes, branch transfer value must be included in “Adjusted Total Turnover” for refund calculation under Rule 89(4), since it qualifies as taxable supply forming part of Turnover in State under Section 2(112).

Relevant provisions:

Section 54(3) CGST Act

Rule 89(4) CGST Rules

Section 2(112) CGST Act

Section 7 read with Schedule I (distinct persons)

GST QUERY RELATED TO REFUND APPLICATION

WE HAVE A BRANCH TRANSFER AND EXPORT SALES DURING THE RELEVANT PERIOD. NOW WE WANT TO APPLY FOR THE REFUND OF ACCUMULATED INPUT TAX CREDIT AS PER RULE 89(4) FOR THE RELEVANT PERIOD. WHETHER ADJUSTED TURNOVER DEFINITION INCLUDE THE BRANCH TRANSFER AMOUNT OR NOT??.
PLEASE GUIDE US AND IF POSSIBLE THEN PROVIDE THE SECTION REFERENCE FOR OUR BETTER UNDERSTANDING

In Reply To :

Form 26QB and TDS

This is a classic Section 194-IA (TDS on purchase of immovable property) timing issue.

Let us analyse transaction-wise and correct the exposure properly.

1️⃣ Legal Position – Section 194-IA

Applicable when:

Sale consideration ≥ ₹50 lakh

Buyer is any person (individual also covered)

Seller is resident

TDS Rate: 1% of consideration
Time of deduction: At time of payment or credit, whichever earlier
Form: 26QB
Due date: Within 30 days from end of month of deduction

2️⃣ Your Facts Chronologically
First Agreement

Date: 05.06.2024
Total Value: ₹55 lakh

Instalments paid:

₹17 lakh (02–04 July 2024)

₹16.5 lakh (03–04 Aug 2024)

Since total consideration was ₹55 lakh (> ₹50 lakh),
TDS obligation arose from first instalment itself.

TDS should have been deducted on each payment.

Second Agreement (Upgraded Plot)

Date: 31.12.2024
Revised Value: ₹90 lakh

This becomes a fresh transaction.

So TDS must be recalculated on total ₹90 lakh (not only incremental difference).

3️⃣ Your Question 1

Can you club both instalments and pay ₹33,500 (1% of 33.5L)?

Technically:

❌ TDS should have been deducted at time of each instalment.
✔ However, practically you can now deduct total pending TDS and file delayed 26QB.

For first 2 instalments:

TDS required = 1% × 33.5L = ₹33,500

But interest will apply (explained below).

After revised agreement of ₹90 lakh:

Total TDS required = ₹90,000

You must ensure total TDS deposited = ₹90,000 (adjusting earlier 33,500).

4️⃣ Interest & Late Fee Exposure
A. Interest (Section 201(1A))

If TDS not deducted:

1% per month from date tax was deductible till date actually deducted

If deducted but not deposited:

1.5% per month from date deducted till date paid

Since you neither deducted nor deposited,
interest @1% per month applies from:

July 2024 (for ₹17L portion)

August 2024 (for ₹16.5L portion)

Till date of actual deduction/payment.

B. Late Fee u/s 234E

₹200 per day
From due date of 26QB till date of filing
(Maximum = TDS amount)

C. Penalty u/s 271H

May be levied (₹10,000 to ₹1,00,000), but generally not imposed if:

TDS + interest + late fee paid voluntarily before notice.

5️⃣ Aadhaar-PAN Linking – Is It Mandatory?

Yes.

If seller’s PAN is inoperative (Aadhaar not linked):

TDS rate becomes 20% under Section 206AA.

Even if seller is Government Authority (e.g., HMDA):

PAN must be quoted in 26QB.

Aadhaar not required if seller is Government / local authority.

Government bodies do not require Aadhaar linking like individuals.

If HMDA is statutory authority, 20% provision generally does not apply.

6️⃣ How To Regularise Now (Step-by-Step)
Step 1

Compute total TDS liability = ₹90,000

Step 2

Compute interest month-wise separately for:

July 2024 portion

August 2024 portion

Future instalments (if any)

Step 3

File separate 26QB for each payment date ideally
(Though practically some professionals consolidate by payment month)

Step 4

Pay:

TDS

Interest u/s 201(1A)

Late fee u/s 234E

Step 5

Generate Form 16B and issue to seller.

7️⃣ Important Clarification About Revised Agreement

If first agreement cancelled and new agreement executed for ₹90L:

TDS applies on entire ₹90L,
not just difference (₹35L extra).

Ensure total deposited equals 1% of ₹90L.

8️⃣ Professional Suggestion to Minimise Exposure

✔ Pay immediately (do not wait for registration)
✔ Pay interest correctly (department system calculates automatically when filing 26QB)
✔ File before notice to avoid penalty
✔ Keep documentation of revised agreement

📌 Final Answers

1️⃣ Yes, you can now deposit ₹33,500 for earlier instalments, but interest & late fee will apply.
Total TDS must ultimately be ₹90,000 (1% of ₹90L).

2️⃣ PAN is mandatory in 26QB. Aadhaar linking is relevant only if seller is individual. For government authority like HMDA, 20% provision generally not applicable.

3️⃣ To avoid penalty:
Pay TDS + interest + late fee immediately before any notice is issued.

In Reply To :

Draft trust deed for school

Yes:
Two settlors are legally valid.


Two Managing Trustees are also legally valid.


https://docs.google.com/document/d/1pTYvvlTu-nix2YkrI-y_XFfbGwkTNEWeSxAFTPG0WHU/edit?usp=sharing

In Reply To :

Sec 393(1) SI.No.2 of Income Tax Act 2025

No, 2% is not applicable irrespective of asset classification merely because payer is Individual/HUF. The asset must fall within the scope of Section 393(1), Sl. No. 2.

For payers other than Individual/HUF, the applicable TDS rate is determined based on the relevant asset classification under the section.

In Reply To :

PRE DEPOSIT

Under Service Tax law:

Pre-deposit = 7.5% (first appeal) or 10% (second appeal)

Calculated only on tax amount (not interest or penalty)

Mandatory and cannot be waived on humanitarian grounds

Form 26QB and TDS

Hi Experts - Regarding 26QB (TDS property), request you to please the resolve below queries
Date of agreement: 05.06.2024
Total sale consideration: 55L INR
1st installement paid without TDS :17L (02.07.2024 - 04.07.2024)
2nd Installement paid without TDS: 16.5L (03.08.2024- 04.08.2024)
Date of agreement: 31.12.2024 (choosen higher end plot) and value: 90L
1. Now my query is that can I club both installements and pay the TDS 33.5K (1% of 33.5L)..?
2. Is aadhar and Pan link is manadatory, since it it government auctioned property I dont think so HMDA will provide aadhar..?
3. Please provide your valuble suggestions to avoid interest, lat fees and penality.
thank you in advance, your support is highly appreciated.

PRE DEPOSIT

HOW MUCH PRE- DEPOSIT TO BE PAID UNDER SERVICE ACT, ON WHICH ELEMENT I.E., TAX + INTEREST + PENALTY AND ON THE BASIS OF HUMANITY GROUND DEMAND CAN BE WAIVED?

Sec 393(1) SI.No.2 of Income Tax Act 2025

I would like to clarify whether, as per section 393(1) SI.No.2 of Income Tax Act 2025, in case the payer is an Individual or HUF, TDS is required to be deducted at 2% irrespective of the nature or classification of the asset. Further, in cases where the payer is other than an Individual or HUF, whether the applicable TDS rate should be determined based on the classification of the asset.

Please reply, welcome your response.

Draft trust deed for school

Looking for draft of trust deed for school. Further looking forward to know can there be two settlor in trust deed. Similarly can there be two managing trusties in a trust for school.

In Reply To :

E- invoice-2

Shall I put Rs.1 as taxable value while preparing E invoice of sale of motor car in loss?

In Reply To :

Professional Tax Refund

To claim refund of Professional Tax (Maharashtra) paid during appeal:

File formal refund application with jurisdictional Professional Tax Officer.

Attach appellate order and payment challans.

Provide bank details for refund.

Follow up for verification and sanction.

Refund is not automatic; formal claim is required.

In Reply To :

Rectification and notice

You must compute HRA exemption separately for each employer for their respective employment period and then claim total exemption under Section 10(13A) in Schedule S.

Most likely CPC disallowed it due to computation mismatch or presentation error.

File rectification with proper employer-wise HRA working.

In Reply To :

TDS ON MAKEUP ARTISTS FEES AND COSTUME DESIGNERS FEES

Makeup artists fees and costume designers fees are treated as professional services under Section 194J.

Applicable TDS rate = 10%

They do not fall under technical services (2%).

In Reply To :

Gst.......

Yes, interest under Section 50 is mandatory.

Interest is payable:

From 21st May (due date of April 3B)
Till actual date of tax payment in September 3B

Voluntary payment avoids penalty but does not remove interest liability.

Buyer’s ITC claim timing does not affect interest.

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