Service Tax Registration for Bus Operator

[Samir Pawar]

Respected All,

If a BUS OPERATOR providing passanger busse directly to Companies - Questions :

1. Assesse is to be registered under what catagory?

2. Wether any abatement is available?

3. If assessee is providing services to contractor and not directly to company, whether service tax is to be charged? or any exemption is available?

 

[YAGAY and SUN]

1. You would have to get yourself registered with the Service Tax Department under Rent a Cab taxable services.
2. uIf you have not availed the CENVAT credit on the Buses, then, you can availe the abatement @ 60%.
3. Yes, even in this scenario you would have to charge the tax and may avail the abatement.

[Samir Pawar]

Dear Sir,

I have registered the assessee under Tour Operator after reading the service tax act. Let me know whether I need to cancel the said registration under TOUR OPERATOR.

Secondly, even if i continued it under the TOUR OPERATOR, whether abatement is availabe ( little confused). My client is providing service to a company where he carry the employees of the company company to a point and from point to company.

[YAGAY and SUN]

You may keep this classification provided that Department is not disputing it.  Yes, abatement will be available provided you have not availed the CENVAT credit on inputs and on Capital goods.

[Samir Pawar]

Thank you, Khatri sir

AI Summary

Service classification determines taxability and abatement eligibility for bus operators, including services provided through contractors.
Bus passenger carriage services to companies or via contractors are taxable and may be registered under Rent a Cab (or retained under Tour Operator if not disputed). A 60% abatement is available only if CENVAT credit on buses, inputs, or capital goods has not been availed. Service tax must be charged even when the service is provided through a contractor, subject to abatement and CENVAT conditions.