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.

[S G]

Hi Krithiga,

This is to clarify that as per Mega Exemption Notification No. 25/2012 - Service Tax dated 20-06-2012 (as amended time to time), Transport of passengers, with or without accompanied belongings, by non- airconditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire is exempt from the whole of service tax. (Refer S. No. 23 (b))

Thanks!!

AI Summary

Exemption for non-airconditioned contract carriage: passenger transport excluding tourism, conducted tours, charter or hire is tax-exempt. Under the Mega Exemption Notification No. 25/2012 (as amended), transport of passengers, with or without accompanied belongings, by non-airconditioned contract carriage other than radio taxi, excluding tourism, conducted tour, charter or hire, is exempt from the whole of service tax.