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.

[Surender Gupta]

No, this activity is not liable to be taxed under the provisions of the service tax.

AI Summary

Service tax exemption for school transport: activity not liable under service tax for school-run bus services. A private trust operating a school purchased minibuses to transport pupils to and from school; the question whether this, or alternatively hiring buses from a private contractor, attracts service tax (including as a tour-operator service) was posed. The respondent advised that the activity of carrying children between home and school in the described circumstances is not liable to service tax, and the reply did not identify any different outcome if the trust were a charitable trust or if buses were hired.