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X company booked 50 Flats in ABC Project. The Flats has not been registered yet. Now the company wants to cancel the said flats. The builder pays to the company over and above the amount paid at the time of booking. What will be the tax implication of the amount received over and above the amount booked as per the Income Tax act? Will this be treated as interest paid? Is service tax applicable on the same? If income tax department treat the same as interest, can service tax department treat the same amount received as compensation and charge service tax on the same? Can there can be different treatment for the same amount under income tax and Service tax? |
