Emaar MGF ordered to pass on profiteered Rs13 cr to home buyers
The National Anti-Profiteering Authority (NAA) has upheld profiteering allegation against Emaar MGF Land for not passing on benefit of input tax credit on GST to home buyers of 'Emerald Floors Premier' at Gurugram and has ordered the company to pass on the benefit within three months.
 
The authority has also issued show cause notice to the company as it is liable to penalty under the CGST Act, 2017.
 
As per the NAA order, the real estate developer profiteered over Rs 13.35 crore, inclusive of GST at 12 per cent on the base amount of over Rs 11.92 crore from over 1,239 home buyers including the complainant.
 
The authority has directed the company to reduce the prices of the flats commensurate with the benefit of ITC received by the company.
 
"The respondent has benefitted from the additional ITC to the extent of 11.90 per cent of the turnover during the period of July 2017 and March 2019 and hence the provisions of Section 171 of the CGST Act, 2017 have been contravened by the respondent as he has not passed on the above benefit to his customers and thus, he has profiteered and amount of Rs 13,35,79,636 inclusive of GST at 12 per cent on the base profiteered amount of Rs 11,92,67,532," said the order copy.
 
The Director General, Anti-Profiteering (DGAP), which investigated the complaint, said that the ITC as a percentage of the total turnover which was available to the developer during the pre-GST period, April 2016 to June 2017 was 9.08 per cent amd rose during the post-GST period, July 2017 to March 2019, to 20.98 per cent.
 
As per DGAP, this increase meant that Emaar MGF benefited from the additional ITC to the tune of 11.9 per cent.
 
The order also said that as the present investigation is only up to March 31, 2019, any benefit which accrues subsequently shall also be passed on to the buyers.
 
Further, the authority directed the developer to pass on an amount of the amount of Rs 13.35 crore and additional realised amount of Rs 1.04 lakh with an interest of 18 per cent per annum.
 
Rajat Mohan, Senior Partner at AMRG & Associates, was of the view that basic principles should be issued to help taxpayers in the calculation of profiteering amount.
 
"NAA has issued plethora of orders in the real-estate sector and all have one thing in common, every taxpayer is confused about the calculation of profiteering. In the wider interest of thebusiness community, tax officers must issue some basic principles to help the taxpayers in the calculation of profiteering amount," Mohan said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 
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    74% say will not visit restaurants even if open: Local Circles
    In not so good news for the dining out industry which is already reeling under losses, 74% people said they will not be visiting their favourite restaurant in the next 30 days even if it was open, according to a survey by Local Circles.
     
    Fear of catching the coronavirus is paramount as 87% citizens said they do not want to visit a restaurant in the next 30 days due to the fear of catching the virus while 61 per cent are reluctant to spend on eating out. Restaurants have still not been allowed to open again. Indians are known to be food lovers and eating out with colleagues, family and friends has been a fond part of our tradition.
     
    But it looks like the coronavirus pandemic has led to people controlling their craving for restaurant food. Local Circles conducted a survey to get a consumer pulse on how they would eat out or order from restaurants post the lockdown relaxations. The 3-poll survey received over 24,000 responses. In the survey, citizens were asked once the lockdown is relaxed and restaurants are open, would they be visiting their favourite restaurant in the area or city for a meal in the next 30 days. 
     
    It was not surprising that 74 per cent respondents answered in ‘no' while only 20 per cent answered in ‘yes'. When asked what the primary reason was for them not wanting to visit their favourite restaurant in their city for a meal in the next 30 days, 38 per cent said they feared catching the virus from restaurant staff, other visitors or via food, while 12 per cent said they do not want to spend on eating out right now. 49 per cent said both of these apply to them for not wanting to visit a restaurant. This means that 87 per cent citizens do not want to visit a restaurant in the next 30 days due to the fear of catching the virus while 61 per cent were also reluctant to spend on eating out.
     
    An earlier LocalCircles survey showed that post the COVID-19 lockdown, people are more inclined to getting things delivered to their doorstep, rather than going out to buy themselves, so that they could prevent themselves from getting infected.
     
    When asked how would they be ordering restaurant food via food delivery apps in the next 30 days, 16 per cent said they would order 1-2 times, 6 per cent said 3-4 times, and 3 per cent said more than 4 times. 65 per cent said they will not order restaurant food for delivery, while 10 per cent respondents were unsure of what they would do. A large section or 65 per cent said they would not order restaurant food even for delivery.
     
    This means that 25 per cent citizens will order restaurant food once or more via food delivery apps in the next 30 days. In the recent relaxations, restaurants have only been allowed to operate delivery services but dine-in options are still prohibited across most parts of India.
     
    Since the lockdown began, the dine in business of restaurant has been zero and food delivery orders from restaurants have seen orders plummet by almost 90 per cent. As per the Federation of Hotel and Restaurant Associations of India, almost 70 per cent hotels and restaurants in India might close down in the next 30 to 45 days due to the strict government regulations and reduced consumer interest, Local Circles said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Etailers welcome move to allow non-essential sales in red zones
    Ecommerce players on Sunday welcomed the government's decision to allow the delivery of non-essential items in the red zones across the country.
     
    The new guidelines for lockdown 4.0 announced by the Ministry of Home Affairs (MHA) paved the way for a broader resumption of economic activities across most parts of the country.
     
    "At Snapdeal, we are ready and equipped to now start serving customers all across India - in red, green and orange zones - by providing them access to the entire selection of millions of products,a a company spokesperson said in a statement.
     
    This would enable lakhs of medium and small online sellers to start rebuilding their businesses as they serve the needs of users in cities and towns across the country.
     
    Srinivas Mothey, Senior Vice President, Paytm Mall said that the move will help them deliver to most of the metro cities which presently fall in the red zones.
     
    "We have received a sizable number of consumer electronics wishlist orders from metro cities where people have been waiting to buy laptops, mobile phones, as well as other daily use items for the last several weeks now," said Mothey.
     
    "The government's decision will also help in opening up supplies of consumer electronics from warehouses which are in the red zones," he added.
     
    The company has had discussions with its merchant and logistics partners and will start taking orders and delivering from Monday.
     
    While some states have supported extension of the lockdown, most have asked for easing restrictions as well as more autonomy in deciding demarcation of areas as red, green, orange zones which as of now is determined by the Centre.
     
    Pankaj Mohindroo, Chairman of India Cellular And Electronics Association (ICEA) said that the nation and industry will now gradually go back to normalcy.
     
    "Ironically our nation's biggest strength of labour availability will now be a challenging factor.
     
    "An all-out effort has to be made to bolster their confidence by ensuring and communicating that all health related measures have more than sufficient capacity and they are at minimal risk," he elaborated.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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