• Recovery of Service Tax after cancellation of Under-construction Apartment.

I purchased apartment in Saffron Hillscape from Shree Keshariya Developers in 2015. They did not start construction of the D building untill 2018. But I had already paid 24 lacs to the builder and done registration. The builder had collected 1.25 lacs as service tax untill then. On cancellation Builder returned 24 lacs and I got refund of stamp duty and Registration minus some arrears from PMC.

Now the issue remains of service tax recovery. Builder has not given me any account or receipts of service tax of 1.25 Lacs. He claims that he has paid service tax everytime we made a payment and it is not possible to give me any revord of his service tax payment records . and that he pays lumpsome service tax to the government. His CA will not assist in this regards. He will provide me his service tax registration number and his GST registration number. and his ledger details pertaining to my transactions.
I want to now pursue with the service tax retrieval from government.
Asked 5 years ago in Service Tax

Dear Sir,

 

Hope you are doing well !!

 

You may file refund application with the required documents in support of the cancellation of the invoice and also the payment of service tax by you, the date of payment etc. within the limitation period in the prescribed form.

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

Only he can provide you refund of such service tax as consumer can't ask for service tax refund.

However you can try and go to the service tax department along with his service tax registration number and your accounts that this person had collected service tax from you and now when you are cancelling the transaction he is not refunding the amount.

 

The refund process was once launched where buyer were allowed to fill a form and claim refund of excess service tax collected by developers for part of land and that was also allowed within 1 year of payment of service tax.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4276 Answers
97 Consultations

5.0 on 5.0

Hi,

 

Builder should pay you back your service tax amount. I. Not sure whether service tax department can help you in this.

 

You should reach out to a lawyer.

Lakshita Bhandari
CA, Mumbai
5687 Answers
911 Consultations

5.0 on 5.0

service tax was deposited by the builder therefore only he can claim the refund from the government and refund to you. It is not possible that you collect it from the government but for builder also it is difficult to get it back.

Vivek Kumar Arora
CA, Delhi
4851 Answers
1046 Consultations

5.0 on 5.0

Yes you can meet officer of service tax and ask what are the possible solutions.

There are no such laws highlighted. The law just says that if someone wrongfully charged Service tax from customer then service tax department will collect it from such supplier and if no client claim for refund they will deposit it in consumer welfare fund.

You need to go and meet the officer personally to know what you can do.

Naman Maloo
CA, Jaipur
4276 Answers
97 Consultations

5.0 on 5.0

HI,

 

Yes, you can meet service tax officer personally and explain everything.

 

You may get a chance of refund.

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

Hello,

 

Builder is required to refund you the service tax paid by you.

You can't claim it form the Government. But if the builder isn't helping you, you should reach out to the service tax department.

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

Yes, you should reach out to the service tax department.

 

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

1. It is not valid.

2. You van visit the department and cross-check it.

Vivek Kumar Arora
CA, Delhi
4851 Answers
1046 Consultations

5.0 on 5.0

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