Service tax on tolls: user charges exempt, but commission retained by independent collectors is taxable. Service tax is not leviable on tolls charged as user charges by SPVs under PPP/BOT arrangements since tolls fall under the State List and are collected on the SPV's own account. If an independent entity collects tolls on behalf of an SPV and retains commission or compensation, that commission is taxable as Business Auxiliary Service. An SPV is not an agent of NHAI, and renting or licensing of vacant land to an SPV and construction of the road do not attract service tax.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Service tax on tolls: user charges exempt, but commission retained by independent collectors is taxable.
Service tax is not leviable on tolls charged as user charges by SPVs under PPP/BOT arrangements since tolls fall under the State List and are collected on the SPV's own account. If an independent entity collects tolls on behalf of an SPV and retains commission or compensation, that commission is taxable as Business Auxiliary Service. An SPV is not an agent of NHAI, and renting or licensing of vacant land to an SPV and construction of the road do not attract service tax.
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