Service Tax on Forfeiture of Flat Booking Amount

Share This Thread
  1. R V S MANI

    R V S MANI New Member

    I pay 10% booking advance to buy a new flat. But I cancel my booking. As per the terms, builder says I have to forfeit the advance amount. Builder says I have to pay service tax on the amount I forfeit.
    Question: Will service tax be applicable for the forfeited advance amount on cancellation?
  2. Yes. because it is income to him by virtue of his service. you have to pay service tax.
  3. rudrabose

    rudrabose Active Member

    Yes, Service Tax would be applicable in this case
Draft saved Draft deleted