https://www.taxtmi.com/caselaws?id=796218 Security deposit retention requires the employer to establish the contractor's default, resulting loss and contractual authority for any deduction after completion and expiry of the retention period. Alleged input tax credit loss from defective VAT invoices cannot support withholding without evidence of actual denial, causation and reliable quantification, particularly where invoices were accepted and processed. Contractual clauses permitting recovery of loss or compensation do not authorise unproved statutory adjustments. Although the contract excluded interest during valid retention, continued withholding after expiry of the performance guarantee period attracted interest at a commercially equitable rate rather than the higher rate claimed. en-us Tue, 28 Jul 2026 00:00:00 +0530 Mon, 03 Aug 2026 08:20:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796218 Security deposit retention requires the employer to establish the contractor's default, resulting loss and contractual authority for any deduction after completion and expiry of the retention period. Alleged input tax credit loss from defective VAT invoices cannot support withholding without evidence of actual denial, causation and reliable quantification, particularly where invoices were accepted and processed. Contractual clauses permitting recovery of loss or compensation do not authorise unproved statutory adjustments. Although the contract excluded interest during valid retention, continued withholding after expiry of the performance guarantee period attracted interest at a commercially equitable rate rather than the higher rate claimed. Case-Laws VAT / Sales Tax Tue, 28 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796218