tax liability upon school buses

[Guest]

dear sir

can be tax levied upon school buses when they are used for commercial purpose.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you meant for service tax?

[Ganeshan Kalyani]

The subject refers given an extention as income tax. The activity of imparting education is exempt from income tax under section 10 of Income tax act. But the activity of providing bus for commercial purpose is not within the activity of education. It cannot claim the benefit of income tax exemption. It is taxable. However I welcome views of experts. Thanks.

[YAGAY andSUN]

If school buses are used for commercial purpose then these buses can be seized/confiscated/impounded by RTO untill unless commercial buses are hired by the School for specific time period on daily basis say 6:00 am to 4:00 p.m. daily except Sundays and after 4:00 pm. if used commercial purpose then RTO should not have any objection. However, as per the guidelines of education department such buses must be painted in Yellow colour if used by Schools. Matter is bit complicated. But in nut shell applicable taxes would be leviable and there would not be any exemption.

[DR.MARIAPPAN GOVINDARAJAN]

Still the querist has not clarified his intention.

AI Summary

Taxability of school bus services: commercial use outside educational exemption attracts tax liability and regulatory enforcement. When school buses are employed for commercial transport rather than as an integral part of imparting education, the conveyance service does not qualify for the education-related income-tax exemption and is taxable as commercial income; additionally, commercial use may attract regulatory enforcement such as seizure by motor vehicle authorities and must be considered alongside education-department vehicle guidelines.