Sale of flat on token money basis

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kunal

kunal (Querist)
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09 January 2013 what is the service tax liability if someone sold flats on token money basis?

Kaushik Vinod

Kaushik Vinod (Expert)
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10 January 2013 Dear Kunal,

Token money is just like advance and if the flat is under construction then Service tax is payable.

Thanks

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kunal

kunal (Querist)
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10 January 2013 sir .. if mr A gives rs 10lakhs as token money to builder to purchase the flat for rs 1 crore and mrA paid service tax on rs 10lakh
as flat is under construction

in the mean while mrA agrees to give this flat to MR.C after obtaining completion certificate for rs 1.2 crore

AND SALE DEED IS EXECUTED DIRECTLY between the builder & MR.C

WHAT IS TREATMENT OF THAT PROFIT(RS 20LAKKS)
DOES THAT PROFIT OF RS 20laks liable to service tax in the hands of MR.A ??

if yes,CAN HE CLAIM INPUT CREDIT OF SERVICE TAX PAID ON RS 10 LAKH???

SIR PLEASE REPLY

Kaushik Vinod

Kaushik Vinod (Expert)
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11 January 2013 Dear Kunal,

The tax paid on 10 lacs is denied by the Rule 2(l) of CCR,2004 excluding part.

In my this 20 lacs seems to be commission on sale of Immovable property and liable to tax in the hand of A.

Crux: No Input on 10 Lacs and Service tax is applicable on 20 Lacs as commission.

Thanks

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kunal

kunal (Querist)
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11 January 2013 thank you sir

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