27 June 2012
During flat booking a developer collected 2 monthly instalment from its customer, all instalment were inclusive of Service Tax later on the booking was cancelled & the developer returned all the instalment to its customer exclusive of Service Tax.
The Service Tax amount collected by the developer till date was not deposited to the Govt A/C and Service Tax return filing was also pending pertaining to that period.
Therefore in this case I want to know whether the developer is liable to return Service Tax amount to its customers or the developer has to deposit all the Service Tax to the Govt A/C.
28 June 2012
Yes, the Developer has to return the Service TAx amount back to you. Otherwise, he has to deposit the said Service Tax amount to the Govt Exchequer without fail. In case of failure, he is liable for penal action with equal amount of penalty and interest @ 18%. Even for failure to file return also, he is liable to penal action.
CAclubindia
