GOVERNMENT OF ASSAM
OFFICE OF THE COMMISSIONER OF TAXES
CIRCULAR No. 3/2017-GST
No. CT/GST-10/2017/194.—Everyone is aware that Goods and Services Tax ( ...
SRI B.K.VINOD KUMAR Vs THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES, BENGALURU
Karnataka Value Added Tax, 2003 - appellant is a Civil Works Contractor – works contract turno ...
SC rules on whether works contract should suffer turnover tax as multi-point levy;
SC holds that though levy is multi-point, transfer of property in goods takes place only once and hence it c ...
Cenvat Credit on Works Contract service availed for making changes in the production process, factory layout, and improvements to the existing facilities to increase volume ...
PHOTON ENERGY SYSTEMS LIMITED Vs STATE OF GUJARAT
Gujarat Value Added Tax Act – execution of Works Contract - provisional attachment order and denial of input tax credit – non-filin ...
Consult Us For Construction
Circular No. 152/3 /2012-ST, Dated- 22nd February, 2012
Subject: Toll in the nature of ‘user charge’ or ‘access fee’ paid by roads users — regarding.
A representation has been received by the Board, seeking clarification regarding leviability of service tax on toll fee (hereinafter referred as ‘toll’) paid by users, for using the roads. The representation has been examined.
2. Service tax is not leviable on toll paid by the users of roads, including those roads constructed by a Special Purpose Vehicle (SPV) created under an agreement between National Highway Authority of India (NHAI) or a State Authority and the concessionaire (Public Private Partnership Model, Build-Own/Operate-Transfer arrangement). ‘Tolls’ is a matter enumerated (serial number 59) in List-II (State List), in the Seventh Schedule of the Constitution of India and the same is not covered by any of the taxable services at present. Tolls collected under the PPP model by the SPV is collection on own account and not on behalf of the person who has made the land available for construction of the road.
3. However, if the SPV engages an independent entity to collect toll from users on its behalf and a part of toll collection is retained by that independent entity as commission or is compensated in any other manner, service tax liability arises on such commission or charges, under the Business Auxiliary Service [section 65(105) (zzb) read with section 65(19) of the Finance Act, 1994].
4. Further, an SPV formed as a result of agreement between NHAI or State Authority and the concessionaire under the BOT arrangement, cannot be considered as an agent of the NHAI. Renting, leasing or licensing of vacant land by the NHAI or State Authority to an SPV for construction of road and such construction do not attractservice tax.
5. This Circular may be communicated to the field formations and service tax assessees, through Public Notice/ Trade Notice. Hindi version to follow.
Under Secretary, TRU
Find on Google Maps
We are Ahmedabad based professional consulting firm. We are providing various services to Construction, Real Estate and Project Companies in various areas like Indirect Taxation – Service Tax & Multi state VAT consultancy, ERP implementation, Site & Management audit, Designing Tender & other related contractual documents etc.