Applicability of service tax on waterfront royalty charged

[Guest]

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

[Surender Gupta]

You are requested to send the detailed particulars, circumstances and informtion.

[Guest]

Waterfront is the one kind of royalty and paid to the local authority-( GOVT) as  against sovereign of state hence service tax on that can not be leved upon that.

AI Summary

Waterfront royalty not subject to service tax when paid to a local authority as a non sovereign levy. The query asks if service tax applies to charges termed waterfront royalty for port cargo handling and storage. One reply states that waterfront royalty is a royalty paid to a local authority and, as a local authority levy rather than a service charge, service tax cannot be levied on it, while another respondent sought detailed particulars before concluding.