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of <h1>Schools Exempt from Service Tax for Student Transportation; Not Classified as Tour Operators or Rent-a-Cab Services.</h1> Schools that provide transportation services for their students are not subject to Service tax under the tour operator category. This position, clarified by the Board's previous communication, remains unchanged. Transporting students using school-owned or hired cabs does not qualify as renting a cab, and thus, schools are not considered rent-a-cab operators. Consequently, these transportation activities do not incur Service tax. This information should be communicated to all relevant trade association members.
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