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of <h1>Service Tax Exemptions for Renting Vehicles: State Transport Undertakings and Goods Transport Agencies Clarified Under Notification No. 25/2012.</h1> The service tax exemptions for renting motor vehicles for transporting passengers and goods, effective from July 1, 2012, under Notification No. 25/2012. Exemptions apply when vehicles are hired by a state transport undertaking for carrying more than twelve passengers or by a goods transport agency for transporting goods. Definitions for 'state transport undertaking,' 'goods,' and 'goods transport agency' are provided. The guidance clarifies that hiring a bus to a state transport undertaking is exempt from tax, while hiring to others is taxable. Transporting passengers on a contract carriage for tourism or similar purposes is taxable.
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