Lawstreet Journal

Delhi High Court Asks Builders To Deposit 50 Percent Of Profiteered Amount For Not Passing Benefits Of GST To Homebuyers

Lawstreet Journal 8 Mar 2020 3:33am

Image courtesy: Lawstreet Journal Judiciary Delhi High Court Asks Builders To Deposit 50 Percent Of Profiteered Amount For Not Passing Benefits Of GST To Homebuyers

Two- real estate companies have been asked by the Delhi High Court to deposit 50% of the alleged profiteered amount in separate funds and the order given by the National Anti-profiteering Agency (NAA) was stayed by the Delhi High Court till the final ruling. 

The bench stated that “The petitioner is directed to deposit 50 per cent of the principal profiteered amount. The said amount shall be deposited in two equal monthly instalments”

The court further stated that the deposits need to be kept in an interest-bearing fixed deposit receipt. The matter involves the projects of two builder companies, whose construction is based in Gurugram and Noida. The NAA had imposed a penalty of rupees five crores each on both the companies for allegedly not passing the benefits of the Goods and Services Tax (GST) regime to the home buyers. 

It was reported that the project started before the implementation of GST but continued even after the implementation of GST. The input tax credit calculation was used by the NAA and calculated the profiteered amount that is available in the GST system and companies’ gross turnover. 

The Counsel representing petitioner before the bench of Delhi High Court - Abhishek Rastogi stated that, “Any real estate project requires substantial investment towards the land cost at the beginning of the project and hence the ratio of the input tax credit to the total turnover may give absurd and inconsistent results and in absence of a declared methodology determining the quantum of profiteering and this issue requires a detailed… Continue Reading...


Tagged: Delhi High Court  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0
New Members view all

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com