2018 (1) TMI 1430 - AT - Service Tax

Levy of Service Tax - amount of security deposit, by the builder-appellant, who has constructed residential flats - Held that - The amount in dispute, is not towards providing of any service provided or to be provided. Further, for the said amount is received by a builder as a pure agent and/or trustee of the flat holders and/or owners, is not liable to service tax - appeal allowed - decided in favor of appellant.

Summary

The appellate tribunal ruled that service tax is not payable on the security deposit received by a builder for constructing residential flats, as it was received as a pure agent or trustee and not for any service provided. The appeal succeeded, and the impugned order was set aside. The builder is entitled to consequential relief.