Internet of things is an integral part in today's development of smart city, now without internet is became like nothing is possible in the world especially for corporate systems where they use internet for communication purpose. Internet communicates through radio waves, line of sight not required. Internet of things (IoT) is expanding it's outreach to every aspect of our daily life and our needs. The IoT energy consumption can also be reduced by utilizing network coding in Internet of things in dayto -day life. In Automatic Toll collection system uses RFID technology where they help to reduce the Toll gate traffic and avoid other illegal passage of vehicles through a Toll gate. This paper shows, for the first time, that Toll booth can be completely managed using the 'Internet of Things' concept based on the RFID technology.