Regarding refund of service tax on cancellation of flat booking

[Sunil Singhania]

Dear Professionals,

One of our real estate client is charging service tax on demand notice issued time to time to customers who has booked flat and paying according to their payment schedule.
My question is Mr. A (customer) who has booked flat in last year and paid service tax time to time to us wants to cancel his booking as well as refund of amount including service tax he paid, how we can refund him the service tax which has been already paid and corresponding return filed time to time?
Can we adjust the service tax paid against the subsequent booking or we have to claim the refund from service tax department?
If yes then how we can claim the refund?

CA SUNIL KUMAR SINGHANIA
9830177150
30024014
30024005

[naik...@indiatimes.com]

Dear Professional

In my view service tax portion can not be refund to the
customer or can not be backed from the department
However he has cancelled the booking of the flat but utilised the service of real estate

Siddhartha naik
9830045352

Dear Professionals,

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[MANISH AGARWAL]

Service tax portion should be refunf to customer and is very much adjustable with subsequent booking.

Regards

Manish Kumar Agarwal

9830210005

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[avik raha]

Dear Sunil,

 

After paying advance fees for services to be consumed in future, if the Consumer wants to cancel the provision of service & demands the advance fees paid; then, the Service provider is not required to refund the Service Tax already deposited in Govt. Treasury. Service provider has to refund only Fees received in advance Less Service tax deposited.

 

2nd issue is how the Consumer can get the refund of Service tax paid. For refund, the Consumer directly has to apply to the Service Tax Department with the clarification & copy of tax submission challan from the Service Provider. That is the only way of having refund.

 

CA Avik Raha <avik....@gmail.com>
B.Com.(H), ACA, DFA,
Associate Consultant, Risk Advisory Serivces, Ernst & Young

Mumbai

Date : 7th July 2011
Warm Regards

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[bhawna singhal]

Kindly refer to Rule 6(3) of Service Tax Rules 1994. The said rule  refers to the case for adjustment of Service tax paid where Taxable service is not provided either wholly or partially due to any reason.
 
The study of your case also refers to the similar case. Hence, the service tax paid to the Government can be adjusted subsequently PROVIDED the full amount along with the SERVICE TAx is REFUNDED back to the customer.
 
Also an inimation in this regard to the department would substantiate your adjustments for future reference.
 
Thanks & Regards
CA Bhawna Singhal
9831439188
 

> Date: Wed, 6 Jul 2011 18:23:06 +0530
> From: naik...@indiatimes.com
> To: foru...@googlegroups.com
> Subject: Re: [PDRUNGTA] Regarding refund of service tax on cancellation of flat booking