Taxability of license fees, Service Tax

[ranganath shenoy]

These days it is common in Government circles to encourage public-private enterprise partnership.There may be various revenue models.I am concerned with the following arrangement:A port has issued license to private enterprise to operate cranes for loading and unloding purpose.The private enterprise is entitled to collect charges from port users not exceeding the Tariff Authority prescribed rates.Undoubtedly, the private operator being authorised by the port and their charges to users being covered by regulations ,will be covered under PORT SERVICES.The question is regarding the taxbility or otherwise of the huge license fees paid by the private enterprise to the PORT,in the hands of the port.In other words is the license fees collected upfront for allowing the private enterprise is taxable in the hands of the port.

Posts / Replies

[Madhukar N Hiregange]

As on date I am not aware of any of the services covering this license amount