CESTAT Rules:
No Service Tax on Sale-Purchase of Flat Allotment Rights
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CESTAT ruled that flat allotment rights are outside the scope of ‘Real Estate Agent Services.
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Cancellation charges levied on buyers do not attract service tax, says the tribunal.
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The case involved the Government Official Welfare Organization, which sells flats to government officials.
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The department argued the organization acted as an intermediary between builders and buyers.
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CESTAT dismissed the department’s appeal, ruling no service tax is payable on these transactions.
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