Value of land deemed as 1/3rd only when its not ascertainable by taxpayer
In the case of MUNJAAL MANISHBHAI BHATT Versus UNION OF INDIA, the Hon'ble Gujarat Hight court given a landmark judgement that 1/3rd of total consideration paid for real-estate transactions deemed as value of Land at the option of the taxable person in cases where the actual value of land or undivided share in land is not ascertainable . the extract of concluding notes from the order is given below: The impugned Paragraph 2 of the Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 and identical notification under the Gujarat Goods and Services Tax Act, 2017, which provide for a mandatory fixed rate of deduction of 1/3rd of total consideration towards the value of land is ultra-vires the provisions as well as the scheme of the GST Acts. Application of such mandatory uniform rate of deduction is discriminatory, arbitrary and violative of Article 14 of the Constitution of India While we so conclude, the question is whether the impugned paragraph 2 needs to be struck do...