SERVICE TAX LIABILITY ON PASSANGER BUS

[Mehul Pandya]

DEAR SIR,

IN CASE OF PASSENGER BUS TRAVELING BETWEEN TWO DESTINATION ON FIX ROUTE ON DAILY BASIS. THEY HAVE BOTH AIR CONDITIONED BUSES AND NON- AIR CONDITIONED BUSES. SO AS PER NEW BUDGET NOTI. NO.06/2014 DATED 11.07.14 SERVICE TAX WILL BE APPLICABLE ON THE SAME OR NOT..

PL. GUIDE

THANKS

AI Summary

Service Tax Applicable to Air-Conditioned Passenger Buses, Non-Air-Conditioned Buses Exempt per Notification No. 06/2014. A query was raised regarding the applicability of service tax on passenger buses traveling between two destinations on a fixed route daily, specifically distinguishing between air-conditioned and non-air-conditioned buses. According to the new budget notification No. 06/2014 dated 11.07.14, service tax is applicable to air-conditioned contract carriages transporting passengers. Conversely, non-air-conditioned contract carriages are exempt from service tax. The amended provision clarifies that non-air-conditioned buses, excluding certain services like tourism and charter, do not attract service tax.