Servie tax liability of Toll Tax

[Sanjay Aggarwal]

One of my client is a limited company and getting transportation bill from GTA. The GTA is mentioning transportation charges as well as toll tax separately.

Now, my question is whether that limited company is liable to pay service tax on the gross amount (transportation charges plus toll tax ) or only transportation charges.

AI Summary

Reimbursable expenses may be taxable as consideration, yet toll reimbursements deposited with government remain excluded pending final judicial determination.
Whether service tax applies to separately invoiced toll charged by a GTA hinges on whether toll is consideration or a reimbursable expense. Historically toll reimbursements were excluded from taxable gross amount and service tax applied only to freight; an amendment later included reimbursable expenditures within taxable value. The Board's circular and tribunal precedents treat tolls deposited with government or collected as a sovereign function as not attracting service tax; the issue is pending higher court adjudication.