Service tax exemption for fully occupied flat
This query is : Resolved
05 April 2017
Sir,
A Builder has two under Construction Projects, say Tower A and Tower B.
A party has booked a flat in Tower A on 01/04/2016 and paid Rs.10 Lakhs to Builder. Builder has paid Service Tax and VAT on the amount to Govt.
Later, the Builder has got Completion Certificate for Tower B on 01/10/2016. So the party has cancelled his flat in Tower A on 15/10/2016 and booked a new flat in Tower B for which Service Tax and VAT is not applicable. The party told to transfer the amount paid for Under Construction flat to the fully occupied flat.
My query is, in the above situation,
1. Whether the party will be exempted from paying tax on fully completed flat? Or whether it will be treated as an attempt of tax evasion?
Expecting your valuable reply.
A Builder has two under Construction Projects, say Tower A and Tower B.
A party has booked a flat in Tower A on 01/04/2016 and paid Rs.10 Lakhs to Builder. Builder has paid Service Tax and VAT on the amount to Govt.
Later, the Builder has got Completion Certificate for Tower B on 01/10/2016. So the party has cancelled his flat in Tower A on 15/10/2016 and booked a new flat in Tower B for which Service Tax and VAT is not applicable. The party told to transfer the amount paid for Under Construction flat to the fully occupied flat.
My query is, in the above situation,
1. Whether the party will be exempted from paying tax on fully completed flat? Or whether it will be treated as an attempt of tax evasion?
Expecting your valuable reply.
08 April 2017
The first service was not provided. Service Tax paid on the first transaction should be claimed by the builder as refund for services not provided.
No service tax is payable on the second transaction.
No service tax is payable on the second transaction.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- Taxable or Tax exempt
- ADVANCE PAYMENT OF ADVOCATE
- TDS Deducted AY-2013-14 Not Reflected in 26as
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- NRI starting business in India
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- REGARDING ANNUAL RETURNS FILLINGS OF A COMPANY INCORPORATED ON 28.03.2025
- TDS Return Q1 FY 2026-27
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
