Abstract: The present invention relates to a method of Internet usage tracking and billing in a utility computing environment and also to a system for control, management and accounting of the said internet usage on per user basis. The present invention is also directed to resolve the issue of same IP address for multiuser and tracking of the Internet usage and bandwidth control on consolidation in utility computing environment, by introducing a separate Utility Computing Internet Control Server (ICS) between the terminal server (TS) and the Internet. All internet traffic originating from the TS are redirected to go through the ICS. The invented system and the method of dynamic control and management according to the present invention deal primarily with the tracking and billing model of the Internet resource in the Utility Computing Environment on per user basis.