Sir,
1) if one has paid some amount of money as booking amount to some builder for some pre launch property in march 2014 and registration of property is not done. will the builder has to pay the Service tax at the time of receiving of money or builder has to pay the service tax at the time of registration.
in case if builder has paid the Service tax to govt at the time of receiving of money, if construction of property is not started till today that is October 2015 and so the registration is not done. and both parties Builder and purchaser agree to refund the money to purchaser. is the builder able to apply for refund of service tax as the service which was promised to give to the purchaser is not provided and agreement stands cancelled
2) if the builder recives the Booking amount from purchaser in year 2013-14 and refund the full amount to the purchaser in year 2015-16. will this booking amount be considered as income for builder in year 2013-14. and is he have to pay income tax on such transaction. if he has paid ncome tax on such income , can he apply for refund in such case as builder has refunded back the entire money to purchaser
3) If builder is refunding the entire money with some 8.6 % interest, and interest is more than 70,000 Rs. is builder eligible to deduct TDS on such interest money. and if purchaser furnished form 15 G what should the builder do. Purchaser's income falls under 30% slab.
CAclubindia
