Category - Transportation facility provided to the students

[R K Verma]

My client is engaged in business of providing coaching to the student, for which he is also provided Transport facility to the students, for which my client have some buses which is on contract carriage permit and some on hired from out side. Now my querry is - Whether the transportation charges received from the students are subject to Service tax under the head "tour Operator" or this is not taxable? kindly clarify. thanks

[Surender Gupta]

This issue is under dispute and Madhya Pradesh High Court has stayed the recovery of Service Tax by the Union Government.

Can u quote reference to the issue under dispute as mentioned?

[Surender Gupta]

Kindly refer to page no. J133 STR Vol 2 part 2.

AI Summary

Service tax on student transport challenged; classification as tour operator service disputed and recovery subject to judicial stay.
Whether transportation charges collected by a coaching provider from students attract service tax under the classification of tour operator service is contested; the provider uses buses under contract carriage permits and hires additional vehicles. The recovery of service tax in respect of this issue has been stayed by the High Court, with a published reference at J133 STR Vol 2 part 2.