Service tax on Toll Tax

[hardik damani]

Service tax is levied on Toll Tax collected by agency ?

[CA Rachit Agarwal]

Service Tax is levied on the services amount and not on the tax amount.

Service Tax will be on the services Toll Tax collecting agency for the value of the services and not on the toll tax.

Tax is an amount which is generally collected by the Government Agency. Non-other agency is authorized to collect the tax.

It is to be required analyzed and study the nature such as

The Agency who collects toll is liable to pay service tax on the commission received for their services either under BAS/Business support service,unless exempted by Govt.

AI Summary

Service tax on toll collection applies to the agency's service value, not to the toll amount collected.
Service tax is leviable on the toll collection agency's remuneration for providing toll collection services, computed on the value of the services or commission received, and not on the toll amounts collected; such consideration may be taxable under Business Support Service unless specifically exempted by the government.