Category - transport service

[R K Verma]

Dear Sir We are enggaged in business of proviing Commercial Coaching & Traning to the students. We paid service tax on all the fee charged in realation for providing coaching including screening, tution, correpondance etc. We also proving the transport facility to student who need or desire transport facility. for this service, we charged transport fee from students. We have transport (buses) exclusive for this purpose. We have niether paid nor collected service tax on transport facility till 31.03.2007. Now My querries are as under :- 1. Is the transport fee charged from the student is taxable under the category "commercial Coaching Center" ? or 2. Is Transport Service provided is taxable under the category "Rent -a- cab" wef 01.06.2007 ? as the scope of rent a cab has been expand and specify in the Finance Bill 2007. Thanks & Regard R K Verma

[Madhukar N Hiregange]

The amendment does create some issues. At this juncture it may not be in rent a cab scheme as you do not rent out the cab to the students. It may not be covered under tour operator as the ferrying of people from home to institute is not a tour. Few decisions in this reagrd maybe relevant to decide. One thing is certain the same is not liable under commercial coacgching category at all. In my view not under rent a cab also.

[R K Verma]

Dear Madukar Ji Can you provide me some documentary evidence i e circular ets that this is not covered under commercial coaching. Thanks & Rgards R K Verma

Thoughthe service will not be covered in tour / rent a cab services, I doubt the component may be included in 'commercial coaching/training' service itself as it is recovered in the courseof the service in view of wordings of value of service and Valuation Rules.

AI Summary

Taxability of transport charges: whether student bus fees form part of coaching service value or a separate transport supply.
Whether fees charged by a coaching institute for dedicated student transportation are taxable as part of the Commercial Coaching Service or as a separate transport service. One view rejects classification under commercial coaching and doubts applicability of Rent-a-Cab or tour operator categories, while an alternative view contends the transport charge may be included in the value of the coaching service under relevant valuation rules when recovered in the course of providing the principal service.