ST on engaging a State Corporation Bus on tourinsm purpose

[P S SATYA NARAYANA]

Dear Sir,

We are a Public Limited Company.  Recently we have engaged a State Road Transport Corporation Bus for our employees to go to Goa on a Tour.  Whether the above activity attracts Service Tax and we need to pay it under Reverse Charge

AI Summary

Service Tax Applicable on Hiring State Transport Bus for Tours; Reverse Charge Mechanism Not Applicable. A public limited company inquired about the applicability of service tax on hiring a State Road Transport Corporation bus for a tour to Goa. Two respondents clarified that the service tax is applicable but not under the reverse charge mechanism. The Mega Exemption Notification excludes tourism-related activities from exemptions. Since the service provider is not an individual, Hindu Undivided Family, partnership firm, or association of persons, the reverse charge does not apply. Therefore, the service provider is responsible for charging and depositing the service tax with the government.