Service tax on Toll Tax

[hardik damani]

Service tax is levied on Toll Tax collected by agency ?

AI Summary

Service Tax Applies to Commission from Toll Collection, Not on Toll Tax Itself, under Business Services. A discussion on whether service tax applies to toll tax collected by an agency reveals that service tax is levied on the value of services provided by the toll-collecting agency, not on the toll tax itself. One response clarifies that the agency is liable to pay service tax on the commission received for their services, categorized under Business Auxiliary Service or Business Support Service, unless exempted by the government. The distinction is made that tax is generally collected by government agencies, and private agencies are not authorized to collect taxes.