Dear Members,
We are in the construction industry, wherein we have taken advances for provision of commercial space in our project. But, due to some unforseeable circumstances, our clients cancelled the contract and thereby we refunded the advance received in full.
We didn't deposit service tax on the advance received and so we refunded the amount in full.
In light of the above matter, are we liable to pay service tax on the advances received and later on refunded in full?
Also, if there is any relevant case law, please cite the same.
Thanking you in advance for your valuable advice.
CAclubindia
