The present invention describes the system of centralized toll identification, payment and monitoring, which uses geo-location enabled devices such as mobile phone, pager or wireless connected laptops to do so. The invention receives the series of readings, distributed over the length of the toll road, by Location Based Services (LBS) provided by geo-enabled devices along with geo-location database lookup and statistical algorithms to accurately identify whether the vehicle is travelling on toll road, distance travelled by the vehicle on toll road and accordingly calculate and deduct charge by online mode. Using such system, person can do the payment of toll when passing through toll road area directly from his geo-location enabled devices without any intervention of any attendant and simultaneously police can use the toll data from the centralized toll system for enforcement.