TaxTMI 
TaxTMI 
DEDUCTION TOWARDS ANTI-PROFITEERING.
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....EDUCTION TOWARDS ANTI-PROFITEERING.<br> Query (Issue) Started By: - Sadanand Bulbule Dated:- 28-6-2020 Last Reply Date:- 29-6-2020 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Dear Sir Here is one interesting fact and academic question prevailing in some business areas. A is a registered taxable person under the CGST Act and engaged in the supply of Ready Mix Concrete(RMC) to B, a hig....
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....hly reputed construction company under the support of valid Tax Invoice. B accepts RMC in goods condition, quantity and while making payments to A, B has been deducting 5% of amount in Tax Invoice towards " Anti Profiteering". On insisting, B is not willing to disclose any reasons for such deduction. In some places RMC is buyers' market and buyers dictate monopoly over the vendors. S....
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....uch amount deducted is very huge. Here one clear thing emerges. B is not one of the authorities notified under Section 51 or 52 of the CGST Act nor there is any provision under Section 171 of the Act authorising taxable person to deduct any amount towards ' Anti Profiteering'. The concept of Anti Profiteering is all together different issue and nothing to do with A, unless there is verifi....
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....able/quality evidence to indicate the non passing of benefit of reduction of rate of tax etc by the vendor. In this case there is no reduction in the rate of GST on RMC, which 18%. Fact being so, under what unforeseen situation B has been deducting such amount without the authority of law is the moot query, besides keeping the vendor in dark about this. Kindly demystify the query and suggest the....
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.... effective solution to stop further deduction and to get back the deducted amount. Respects. Reply By Rajagopalan Ranganathan: The Reply: Sir, If, in the contract between the supplier and receiver there is no condition for deduction towards Anti-profiteering then you can move the civil court against the receiver who has deducted Anti-profiteering charges without authority of law. such deductio....
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....n invites civil consequence. GST Act is not authorising any person other than the competent authority to demand and recover the said sum. Reply By Sadanand Bulbule: The Reply: Thank you very much Sir for your quick response. Regards. Reply By PAWAN KUMAR: The Reply: Rightly explained by Sh. Rajgopalan sir. NAA (National Anti-Profiteering Authority) under section 171 is the final authority who ....
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....can order if it is evidenced that anti-profiteering has been done, to return back to customer with interest, reduction in prices, impose of penalty and cancelleation of registration. Other authority has not given to any body such as a taxpayer. The amount deducted may be some kind of LD which the buyer is liable to pay GST. Reply By Sadanand Bulbule: The Reply: Ok Pawan Sir. Thank you so much.<b....
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