What is Price Control and Anti-Profiteering Act 2011?

The Price Control Anti-Profiteering Act 2011 (“PCAP”) was passed to protect consumers in Malaysia against unreasonable increase in prices of goods and services following the introduction of the Goods and Services Tax (“GST”) regime in Malaysia. Under the PCAP, profiteering is an offence.

What is Anti-Profiteering Act?

The crux of the anti-profiteering rules is- If there is reduction in rate of tax on the supply of goods or services or. Benefit of input tax credit is now available under GST, then a registered person must pass on the benefit by reduction in prices.

Can the government set prices?

Price controls are government-mandated minimum or maximum prices set for specific goods and services. Over the long term, price controls can lead to problems such as shortages, rationing, inferior product quality, and black markets.

What is AAR in GST?

An advance ruling helps the applicant in planning his activities which are liable for payment of GST, well in advance. A legally constituted body called Authority for Advance Ruling (AAR) can give a binding ruling to an applicant who is a registered taxable person or is liable to be registered.

How demand and recovery is done in GST?

GST is payable on a self-assessment basis. If the assessee pays the tax on self-assessment correctly then there will not be any problem. If there is any short payment or wrong utilisation of input tax credit, then the GST authorities will initiate demand and recovery provisions against the assessee.

What are the price control of the government?

Price controls are government-mandated minimum or maximum prices set for specific goods and services. Price controls are put in place to manage the affordability of goods and services on the market. Minimums are called price floors while maximums are called price ceilings.

Why market price is not determined by the government?

There arises a shortage of goods which in turn increases the price to equilibrium price. However, the prices are not determined only by the forces of demand and supply. Other factors such as the price of substitute goods, price of related goods, government policies, competition in the market, etc.

Who can apply for AAR?

The application for advance ruling can be made by an applicant as defined in section 245N(b). As per section 245N an ‘applicant’ would mean the following: A non-resident who has undertaken or proposes to undertake a transaction in India.

Who can file AAR?

An applicant or jurisdictional officer can bring to the attention of AAR or AAAR any rectification required for an order passed by it. The time limit allowed is within six months from the date of the order.

What is the maximum penalty leviable 74?

When can a Demand Under GST be Raised by the Tax Authorities?

Particulars	When there is no fraud (Section 73)	When there is a fraud (Section 74)
Show cause notice	Yes	Yes
Max. time limit	3 years	5 years
The time limit for SCN	3 months before the expiry of 3 years	6 months before the expiry of 5 years
Penalty	10% of tax	25% of tax

What are examples of price control?

Some of the most common examples of price controls include rent control (where governments impose a maximum amount of rent that a property owner can charge and the limit by how much rent can be increased each year), prices on drugs (to make medication and health care more affordable), and minimum wages (the lowest …

What is Price Control and Anti-Profiteering Act 2011? The Price Control Anti-Profiteering Act 2011 (“PCAP”) was passed to protect consumers in Malaysia against unreasonable increase in prices of goods and services following the introduction of the Goods and Services Tax (“GST”) regime in Malaysia. Under the PCAP, profiteering is an offence. What is Anti-Profiteering Act?…