Govt  may  ease  tax  rules for road developers

The government intends to simplify taxation in the roads and highways se­ctor by allowing developers to pay taxes over the course of a project’s concession period rather than all at once. In the case of road projects created under the Hybrid Annuity Model (HAM), investors may be given the option of paying taxes on profits over a 25-30 year concession period rather than upfront after construction is complete. Recently, the Goods and Services Tax (GST) Council confirmed that construction annuities are subject to GST, whereas operations and maintenance annuities are not.