17 December 2010
Dear All, my company is engaged in real estate business. we collect booking amount from our customer who want to book a house in our residential project. but some times customer need to cancel that booking and want to refund his booking amount. now i want to know that if i refund the booking amount to customer, am i liable to pay S.T. on that amount.
19 December 2010
it may happen that certain assessees pay the service tax on advances received from their customers but due to any unavoidable reasons, the contract with customer may come to end abruptly. in such situation,the service tax has been paid for the service not rendered, now practial aspect is: sub rule (3) of rule 6 clarifies that in such case situation, the assesse are permited to adjust the excess service tax paid, calculated on pro-rata basis, against future liability.
CAclubindia
