Educational body exclusion for hired buses kept school and college trip services outside rent-a-cab and tour operator tax

Vehicles hired by schools and colleges for educational trips fell within the exclusion for use by an educational body, other than a commercial training or coaching centre, under the Finance Act's rent-a-cab and tour operator definitions. Journeys organised or arranged for such educational bodies were also kept outside tour operator service. Because the hiring by schools and colleges was not controverted, the services remained within the exclusion and were not taxable under the cited categories.

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Issues: Whether the buses hired by schools and colleges for educational trips fell within the exclusion from tour operator service and rent-a-cab service available for journeys organised or arranged for use by an educational body.

Analysis: The definition of cab and tour operator under the Finance Act excluded vehicles rented for use by an educational body, other than a commercial training or coaching centre, and also excluded journeys organised or arranged for such educational bodies from the scope of tour operator service. The finding that the vehicles were hired by schools and colleges for trips remained uncontroverted by the Revenue.

Conclusion: The services were covered by the educational body exclusion and were not taxable under the cited service categories.

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