Service tax on cancellation of a flat booking

[Anand Nahar]

My client sold a flat and received a cheque for advance booking amounts on 27.05.2016. He did not pay service tax on this amount. Subsequently, a flat booking was cancelled, and my client returned the advance booking amounts on 29.03.2019. Kindly suggestions grounds, cases for filing appeal.

AI Summary

Service tax on flat booking advance after cancellation and refund raises questions on taxability of the disputed consideration. Service tax treatment of advance booking amounts received for a flat sale, where the buyer's booking was later cancelled and the advance was returned, raises the issue of whether tax liability can be sustained on the receipt of the advance despite subsequent cancellation and refund. The subject matter concerns the tax consequences of advance consideration in a real estate transaction, the effect of cancellation on the service tax position, and the basis on which appeal grounds and supporting case law may be considered in relation to the disputed tax demand.