Whether refund of tax paid towards booking of a flat is allowed if the same has subsequently got cancelled ?
TRT-2026-825

Issue Favourable to Tax Payer ?:- yes

Held - As per Rule 66E(b), Service Tax Rules, 1994 in construction service, service tax is required to be paid on amount received from buyers towards booking of flat before the issuance of completion certificate by the competent authority and the booking can be cancelled by the buyer any time before taking possession of the flat.

Once the buyer cancelled the booking and the consideration for service was returned, the service contract got.....