Please guide me whether Service Tax is applicable on Tendered Build Operate Transfer (BOT) Projects given by the Govt. Department's.
The pre specified Toll/Usage Fee or Charges are collected by the Govt. Department itself. The amount collected from the users does not include Service Tax.
The Contractor is paid a fixed price of Rs. X per unit by the Govt. Dept.
This fixed price of Rs. X per unit paid by the Govt. Dept. includes the Capital Cost, Interest Cost, Operational Cost, Maintenance Cost and Profit of Contractor.
Is Service Tax Applicable on this type of Contract? If applicable, on which Component amount should the Service Tax be chargable?
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