Service tax on booking of flats

construction of residential complex has been brought to tax net from 1/7/10.

whether service tax is applicable on cancellation of booking refund is an issue not free from debate. In my view, there is actually no rendition of service. But difficult to prove in departmental proceedings -- the acse is indeed litigation prone. Is it, by the way, business auxiliary service ?

Although it is refundable, since developers paid the tax to government, normally tax amount may not be refunded. For subsequent booking, tax will have to be paid afresh.