service tax contract passanger bus services

[Ajit Vaze]

Dear Sir,

We want know that Service tax chargeable on passanger bus services - accounting head and whether it is taxable in cool cab service or other any services

[Vivek Harsh]

 

Rent-A-Cab scheme operator

Meaning of Cab - 65(20)

"cab" means—

(i) a motorcab, or

(ii) a maxicab, or

(iii) any motor vehicle constructed or adapted to carry more than twelve passengers, excluding the driver, for hire or reward:

Considering the above definition renting of bus can be covered under Renting a cab Service, In my view we shall not fall within "Tour Operator" service . Service shall be taxable under Cab Service

[Mahir S]

Yes, I also agree that your services shall fall under the heading of Renting a Cab Service.

However, it has not been mentioned as to for what purpose the passenger bus service are utilised, as there are various exemptions available therein as detailed below :

[(20) "cab" means —

      (i)  a motorcab, or

      (ii)  a maxicab, or

      (iii) any motor vehicle constructed or adapted to carry more than twelve passengers, excluding the driver, for hire or reward :

     Provided that the maxicab referred to in sub-clause (ii) or motor vehicle referred to in sub-clause (iii) which is rented for use by an educational body imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre, shall not be included within the meaning of cab;]

 

[YAGAY and SUN]

Bus service is very well incorporated in the Rent-a-Cab service.

[Dilip Darji]

Service Tax is chargeable. Codes are as under:

Tax Collection (004040048)

Other Receipt (00440049)

Deduct Refund (00440050)

Education Cess (00440298)

SHE (00440426)

[MohitKumar Dixit]

Dear all,

As per genaral definition as given in SS Gupta's book, 

Motor vehicle means any motor vehicle constructed or aopted to carry more than six passenger, but not more than twelve passenger, excluding the driver, for hire or reward. (section 2(22) of Motor vehicle Act 1988.

 

Please check it and let share with us which definition is correct.

 

AI Summary

Rent-a-Cab service: passenger bus rentals treated as taxable cab hires unless exempted for educational use.
Passenger bus rentals ordinarily qualify as taxable under the Rent a Cab Service because the definition of "cab" includes vehicles adapted to carry more than twelve passengers; however, a proviso excludes vehicles rented for use by educational bodies imparting skill or knowledge, creating an exemption where that use applies. Service tax is therefore chargeable on bus rentals except when the educational use proviso is engaged, and specific accounting codes were suggested for tax, cesses and receipts.