IRB Infra trades higher on the bourses

IRB Infrastructure Developers Ltd. | Engineering - Construction | Construction & Infrastructure | BSE: 532947 | NSE: IRB

18 Mar 2013 Evaluate

IRB Infra is currently trading at Rs. 121.90, up by 0.35 points or 0.29% from its previous closing of Rs. 121.55 on the BSE.

The scrip opened at Rs. 119.80 and has touched a high and low of Rs. 122.35 and Rs. 118.20 respectively. So far 1, 17,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 207.00 on 21-Mar-2012 and a 52 week low of Rs. 100.25 on 14-May-2012.

Last one week high and low of the scrip stood at Rs. 125.80 and Rs. 118.15 respectively. The current market cap of the company is Rs. 4,051 crore.

The promoters holding in the company stood at 62.66% while Institutions and Non-Institutions held 25.33% and 12.01% respectively.

Special purpose vehicles (SPVs) of road projects are not liable to pay service tax, as they are not “agents” of highway authorities. The decision gave relief to highway developer IRB Infra which received a notice to pay up as much as Rs 288 crore. Last year the department sent an order to IRB claiming that special purpose of vehicles is “agents” of either of National Highways Authority of India (NHAI) or state authorities, as opposed to “concessionaires” to whom projects are allotted. After noting them as agents, tax department classified toll collection as a “business auxiliary service”, and hence liable to pay tax.

The order also demanded service tax amount to Rs 288 crore, a penalty of equivalent amount, and interest for five years starting 2006-07. The Hon'ble Tribunal has allowed the appeal of these SPVs and observed that the appellants are not liable to pay service tax as they are not providing business auxiliary service to NHAI or state authorities. In this connection, the Hon’ble Tribunal set aside the entire demand of service tax raised by the Commissioner of Service Tax.