Applicability of service tax on advances or deposits received from the prospective buyers of complexes from the contractors cum owner- Whether advance or deposits

[samiuddin ansari]

Applicability of service tax on advances or deposits received from the prospective buyers of complexes from the contractor cum owner- Whether advance or deposits received from the buyers are to be included in the taxable value?

AI Summary

Service Tax on Advances: Included in Taxable Value Only if Adjusted Against Provided Services; Refunds Possible if Service Not Rendered. The discussion addresses whether service tax applies to advances or deposits received from prospective buyers of complexes by contractors or owners. The query concerns whether these amounts should be included in the taxable value. The response clarifies that advances are included in the taxable value only if they are adjusted against taxable services provided in parts. If an advance is taken and service tax is paid but the service is not provided, a refund can be claimed. Advances form part of the taxable value only if the service is to be provided.