Category - Parking fees - Liability of Contractor or municipal body

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....ategory - Parking fees - Liability of Contractor or municipal body<br> Query (Issue) Started By: - sunil v mehta Dated:- 13-7-2006 Last Reply Date:- 18-7-2006 Service Tax<br>Got 2 Replies<br>Service Tax<br>Dear Sir, Municipal authorities gives contract under 'pay & park' scheme at different locations of city to different contractors.The contractor collects parking fees from public(as per rates dec....

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....ided by municipal auth.)The contractor pays Rs.30 lacs to mun.auth. as licence fees(non refundable)for allowing contractor to collect parking fees for a specified period. Query:1)Under what category does the above service fall? 2)If it is liable to s.tax ,then whether mun.body & contractor both are liable or only contractor? Note:The amount of parking fees collected by contractor is his sole incom....

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....e and he has not to share with mun.body.only licence fees has to be paid by him. Thanking you, sunil mehta Reply By Surender: The Reply: Service provided by a contractor in relation to parking lots is liable to service tax under "Management, Maintenance or Repair" category. Fees payable to Municipal authorities is not taxable. Reply By Madhukar N Hiregange: The Reply: The fees by municipal corpro....

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....ation in my view does not seem to be covered under service tax provisions as on date. Even the parking charges may not be covered as I see. It maybe advisable to write to the department and nesure that the same is sent under registered post acknowledgement due.<br> Discussion Forum - Knowledge Sharing ....