reverse charge-applicability

[Dalia Felix]

experts,

when a company hires(contract carriage) buses and taxi cars for transporting employees, what is the applicability of reverse service tax on the company ? A fixed amount is to be paid as monthly rental to the owners (usually individuals) and the period of contract is 2 years. what is the applicability of 23 (b) of the mega exemption notification  no. 25/2012 in this case?

one of our learned members has expressed his view (reply to another query) that 'buses having contract permit hired for transportation of employees is exempted'. Frankly, i couldn't locate the basis for this opinion.  Can you help me? What I noticed was 'exemption to public transport other than predominantly for tourism purpose in a vessel between places located in India'.

Why 'renting' of motor vehicles has been retained in the 'reverse charge notification' where as it was proposed to be on 'renting/hiring' as per Notificaion No. 15/2012-ST 

AI Summary

Reverse charge on motor vehicle hiring applies to employee transport when hire or charter excludes contract carriage exemption.
Reverse charge liability applies where motor vehicles are hired or chartered for employee transportation because such arrangements typically fail the Motor Vehicles Act definition of contract carriage and fall within the reverse-charge charging provisions; exemptions for contract carriage exclude services for tourism, conducted tours, charter or hire.