Applicability of Service Tax on the Development fee (DF) charged at airports - reg.

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..... velopment fee (DF) charged at airports - reg. Representations have been received seeking clarification regarding leviability of service tax on the Development Fees charged at Airports particularly at Mumbai and Delhi by Mumbai, International Airport Pvt, Ltd. and Delhi International Airport Pvt. Ltd. 2. The matter have been examined. In this regard, attention is drawn to letter Dy. No. 106/Co .....

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..... the charge of management of an airport or civil enclave". Section 68 (1) of the Finance Act provides that every person providing taxable service to any person shall pay service tax at the rate specified in section 66 . Further section 67 (1) of the Finance Act, 1994 provides that where service tax is chargeable on any taxable service with reference to its value then such value shall be the .....

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..... ut to. Service tax is being levied under the Finance Act, 1994 and its leviability has to be solely determined under the provisions of this Act. The factum that gross amount charged for the service is being split into two parts, of which one portion is being used for a specific purpose by the service provider, is not relevant for the purpose of determining the value of the service. The value sha .....

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