https://www.taxtmi.com/forum/issue?id=120950 Service tax on advance booking amounts is discussed where a flat booking is cancelled and the entire consideration is refunded. The commentary states that, once the transaction is rescinded and no service is ultimately rendered, the amount no longer has the character of taxable value and the levy on the cancelled booking does not survive. It further notes that, even if tax was initially payable on receipt of the advance, adjustment or credit may be available under Rule 6(3) of the Service Tax Rules, 1994 when the service is not provided and the amount is refunded. en-us Fri, 05 Jun 2026 13:47:12 +0530 Mon, 22 Jun 2026 12:59:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=120950 Service tax on advance booking amounts is discussed where a flat booking is cancelled and the entire consideration is refunded. The commentary states that, once the transaction is rescinded and no service is ultimately rendered, the amount no longer has the character of taxable value and the levy on the cancelled booking does not survive. It further notes that, even if tax was initially payable on receipt of the advance, adjustment or credit may be available under Rule 6(3) of the Service Tax Rules, 1994 when the service is not provided and the amount is refunded. Discussion-Forum Service Tax Fri, 05 Jun 2026 13:47:12 +0530 https://www.taxtmi.com/forum/issue?id=120950