11 February 2015
One of my client booked flat in under construction building in the year 2009 payment was made by us 50 lakhs, agreement value is 1.20 crores balance is payable
now due to new D.C.rules builder is not able to complete the building and insisting on cancellation, he is executing deed of cancellation and will give 80 lakhs (50 lakhs paid by us plus 30 lakhs towards compensation)
my query is
1)whether this can be treated as long term capital gain 2)there is deed of cancellation. Is this amounts to transfer of capital assets 3) Is this amt. is liable for service tax. 4) any other suggestion to take benefit of long term capital gain
CAclubindia
