13 June 2009
Sir, recently NHAI have floated Contacts on Operation, Maintenance & Transfer Basis for a period of 9 years, in that contract, to do opration and maintenance of four lane roads, also collect toll, to quote for award as upfront payment to be paid to NHAI, then my querry is whether service tax is applicable on Toll Collection amount?, if yes what is percentage of it?
14 June 2009
The upfront payment made to NHAI may be taxable under "Management, Maintenance & Repair Service".The entire amount may not be taxable, only portion representing maintenance may be taxable if it is identifiable distinctly.