Applicability of service tax - contract buses

[Guest]

Sir I have come across a notification which says that service tax is not to be collected on contract buses hired for the purpose of commutong children from schools for pickup and drop. can i get the details of this matter with any rulings please. padmanabhan.n

AI Summary

Service Tax Exemption: Transporting School Children in Contract Buses Not Taxable per Trade Notice 17 of 2009 A forum participant inquired about the applicability of service tax on contract buses used for transporting school children. They referenced a notification suggesting such services are exempt from service tax. Another participant responded, citing trade notice number 17 dated March 13, 2009, which clarifies that transporting children to and from school using school-owned or hired cabs does not constitute a taxable service under the category of renting a cab. Therefore, these transportation activities are not subject to service tax. The original inquirer thanked the respondent for the clarification.