banner_ad

Service tax on flat booking cancellation charges collected

This query is : Resolved 
Profile Image

Profile Image

(Querist)
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...
Profile Image

Annu Agarwal

Profile Image

Annu Agarwal (Expert)
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details