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Service tax

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Jiten

91 Points Posted on 01 August 2012

1) From customer A we have recd advance collection agst flat booking on which we have deposit the service tax element. This transaction happens before 31.3.12. Now on 30.7.12 customer A want to transfer the flat to customer B for which A needs his whole money back & customer B is giving the same amount.

What about the service tax element which we had deposited at the time of collection from customer A. While depositing the service tax on amt collected from B, can we adjust the service tax paid on amt collected from A??

regards

jitendra

Replies (1)

Rohan

Consultant

111 Points Posted on 01 August 2012

Sir,

What is being proposed is being, shifting of incidence of tax. Let is keep is simple.

For a Flat No. 123, X amount of service tax needs to be charged for any amount received before OC or BUC.

Now Cust. A cancels the Flat No. 123, which is given to B, assuming for the same price and before the OC or BUC. Simply give back the whole amount along with the Service Tax to A and take it from B.

Please Note, the scenario changes when the same flat is given after the OC or BUC.