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Service tax on cancellation charge

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Querist : Anonymous

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Querist : Anonymous (Querist)
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
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TKKKKKK

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TKKKKKK (Expert)
12 February 2015 Yes, it is long term capital gain as here right in property is transferred and you can as per section 54EC or 54F.
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