Service tax on flat booking cancellation charges collected
This query is : Resolved
14 December 2013
Dear All
We are a real estate/construction company dealing in developement of group housing societies. When customer cancel their booking then we charges a damange compensation against their booking cancellation.
My query is that, are we liable to pay service tax on such amount forfeited on cancellation.
We are not collecting S. TAX from customers on the view that it is not any kind of service provided.
Thanx in anticipation...
We are a real estate/construction company dealing in developement of group housing societies. When customer cancel their booking then we charges a damange compensation against their booking cancellation.
My query is that, are we liable to pay service tax on such amount forfeited on cancellation.
We are not collecting S. TAX from customers on the view that it is not any kind of service provided.
Thanx in anticipation...
15 December 2013
As per my view,you are correct in not collecting service tax from customers.
Firstly,you are not providing any services against these charges.
Secondly,service tax is levied on consideration not on compensation charges.
Firstly,you are not providing any services against these charges.
Secondly,service tax is levied on consideration not on compensation charges.
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
- Itr 1 processing
- Reporting Income under Section 44ADA
- Building and other construction workers welfare cess act 1996
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Bank Accounts in Balance Sheet for ITR 3
- TDS ON CASH WITHDRAWALS...
- Article ship defecit
- Form 10BD Filling
- Registration as Authorised Representative of minor
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Annual return of gst limit
- Delisted shares sold in off market/ Rebate u/s87A
- Error whiling application of GST REFUND (ANNEXURE B)
- While filing GSTR9 accountant couldn't entered the ITC values in Table 6, in 9C it is not accepting
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
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
