News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
General »
 Government to revamp procedure for tax assessment
 I filed my ITR for AY 2019-20 but made a mistake. How can I rectify it?
 Stricter rules on dealing with tax evasion kicks in from today
 New income tax rules from today, no escape just by paying penalty
 How to link your Aadhaar Card with Income Tax Return?
 Got a tax notice? Here’s what you should do
 How tax efficiency varies across states
 Follow deadline or you may face these consequences Income Tax Return filing
 How to make full use of section 80D to save tax on health insurance?
 Concessional income tax rate in traders' list of demands for Modi govt
 GST Council may consider national bench of AAAR next month

Lifestyle to refund profiteered amount
September, 28th 2018

Fashion retailer Lifestyle International Pvt Ltd. has got entangled in the crosshairs of anti-profiteering authority for allegedly not passing on the benefit of the goods and services tax rate cut to consumers.

In an order that sets an important precedent for such cases, the National Anti-Profiteering Authority directed Lifestyle to refund the profiteered amount, ordered the issuance of showcause notice to the company and asked the Director General of Anti-Profiteering to initiate a detailed investigation.

The authority directed the company to refund Rs 41, equivalent to the price reduction for one product that was not passed on, along with interest at 18% to the complainant and asked the Director General of Anti-Profiteering to investigate whether the company withheld such benefit for other products.

The DGAP will collect any such excess profit derived from other products and deposit the amount with the consumer fund. The show-cause to be issued to Lifestyle will ask why the company should not be penalised for violating the GST law. Tax experts said this was another important ruling that indicates how the authorities are considering the anti-profiteering concept.

“This case decides on the complaint but also issues order for investigation on other products sold. Further, a clear message that price reduction is required for each product and general reduction in prices does not make the business compliant,” said Anita Rastogi, a partner at PwC.

The complainant had alleged that the price of ‘Maybelline Fit Me Foundation’ sold by Lifestyle was not reduced after GST on the product was cut to 18% from 28% on November 15 last year. Lifestyle took the plea that the maximum retail price of a product was decided by the brand owner, which, in this case, was outside India.

The company submitted it could not be held non-compliant in absence of guidelines from the authority on how the benefit should be computed and passed on. It also argued that the scope of the investigation should not be extended on a pan-India basis and should be restricted to the complaint.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions