Service tax applicability on transport facility

[shyamal roychowdhury]

My client is a school .It is run by a Trust . (private ) Now the trust has purchased 2 mini buses for carring children from house to school & back . The bus is only useed for carring children . Now the issue is weather this is service taxable under tour operator ? /or comes under service tax under any other clause . Would the situation changed if the trust becomes charitable trust . altenativlly if the trust instead of purchasing the bus hires the bus from pvt contractor and use those buses for carrying children fron house to school & back , will it then also taxable under service tax ? Request for an advice to all the readers.

AI Summary

Private School Trust's Minibus Transport Not Subject to Service Tax; Charitable Status and Hiring Contractor Unaffected A private trust operating a school purchased two minibuses for transporting children between home and school. The query raised concerns about whether this service is subject to service tax as a tour operator or under any other clause. Additionally, it questioned if the tax liability would change if the trust were charitable or if buses were hired from a private contractor instead of purchased. The response clarified that this activity is not subject to service tax under the current provisions.