Is construction of toll plaza taxable?
A Netizen sent me a mail:
Will you please oblige me by publishing my question in your DDT Column?
Service tax is not leviable on toll fee paid by roads users at Toll Plaza - Clarified by Board vide Circular No. 152/3/2012-S.T., dated 22-2-2012. But still Service Tax law is silent about leviability of service tax on construction of toll plaza meant for collection of toll tax on behalf of NHAI. Collection of toll is sovereign function of the State though also exempted from service tax. Can construction of toll plaza be called commercial activity ?