Contract Carriage

[krithiga thirumavalavan]

A large section of people involved in Transports namely transporting tourists or passengers from one place to another either within the state or inter-state. A separate permit is given by the Regional Transport Authority for flying or operating Contract Carriages. I want to know as to whether the contract carriage operators (with air-conditioned coach or without air-conditioned) are liable to pay service tax. My friend told me that only Air Conditioned Contract Carriage operators alone pay service tax and others need not pay. I don't understand my friend's view. please clarify the same.

AI Summary

Non-AC contract carriages exempt from service tax under Mega Exemption Notification; AC carriages remain liable. A query was raised regarding the liability of contract carriage operators to pay service tax, specifically questioning whether both air-conditioned and non-air-conditioned operators are subject to this tax. The response clarified that, according to the Mega Exemption Notification No. 25/2012 - Service Tax, non-air-conditioned contract carriages, excluding those used for tourism, conducted tours, charter, or hire, are exempt from service tax. This exemption does not apply to air-conditioned contract carriages, which are liable for the tax.