Case Law Details
In re Rites Limited (GST AAR Haryana)
No GST on recoveries on account of Notice Pay, Bond Forfeiture, Canteen Charges, ID Cards replacement Liquidated Damages etc.
The AAR, Haryana in the matter of M/s Rites Ltd. [Advance Ruling No. HR/ARL/19/2022-23 dated October 18, 2022], Re has passed a ruling on the taxability of amount collected or received or forfeited as Notice Pay Recovery, Bond forfeiture of contractual employees, canteen charges, recovery on account of loss or replacement of ID Cards, Liquidated damages due to delay in completion, Forfeiture of earnest money and security deposit and bank guarantee by applicant, and Amount written off as creditors balance in the books of accounts of the applicant.
Facts:
M/s RITES Ltd. (“the Applicant”) was established in 1974 and was incorporated as a Public Ltd. company under the Companies Act, 1956. It is a multi-disciplinary consultancy organization, which deals in the field of transport, infrastructure and other related technologies. The nature of various amounts received or forfeited are as follows:
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