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Servie tax liability of Toll Tax

Service Tax - Started By: - Sanjay Aggarwal - Dated:- 14-5-2016 Last Replied Date:- 16-5-2016 - One of my client is a limited company and getting transportation bill from GTA. The GTA is mentioning transportation charges as well as toll tax separately.Now, my question is whether that limited company is liable to pay service tax on the gross amount (transportation charges plus toll tax ) or only transportation charges. - Reply By KASTURI SETHI - The Reply = Sh.Sanjay Aggarwal Ji, As per Section 6 .....

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means any amount that is charged for service provided or agreed to be provided by service provider to service receiver. In your query, GTA is paid for carrying goods from one place to another. The consideration is agreed for doing the same. Toll is not the charges for the service provided, but in fact it is incidental charges. The service provider has to pay toll while his vehicle is on road. And this is claimed from service receiver. Hence it is reimbursement and not consideration and therefor .....

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red has become part of taxable value but still taxes, cesses or duties levied are not consideration for any particular service as such and hence not leviable to Service Tax . These fall under except in such circumstances, and subject to such conditions, as may be prescribed; Sir, I am looking forward to your opinion on the issue. - Reply By Ganeshan Kalyani - The Reply = Sir, in my view toll is not a tax, cess or duty. Toll is a fees paid for accessing the road. It is collected for recovering th .....

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x is retained and the same is deposited with Govt. no ST is applicable. Further, there are a few case laws of CESTAT where it has been held that Toll tax collection is a sovereign function and not taxable. Whether toll is a tax or fee it makes no difference as its collection is a sovereign function. Service tax not leviable on toll fee paid by roads users - Claridications Circular No. 152/3/2012-S.T., dated 22-2-2012 Board has issued this circular but the issue whether toll tax is chargeable to .....

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