Applicability of service tax on waterfront royalty charged

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Whether service tax is applicable for waterfront royalty charged in case of port services dealing in vessel corgo handling and storages.

AI Summary

Service Tax Not Applicable on Waterfront Royalty for Port Services, Considered Sovereign Payment to Local Authorities A query was raised about the applicability of service tax on waterfront royalty charged for port services related to vessel cargo handling and storage. One respondent requested more details to provide a precise answer. Another respondent clarified that waterfront royalty is a type of payment made to local authorities as a sovereign right of the state, and therefore, service tax cannot be levied on it.