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Hiring of ambulance

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Querist : Anonymous

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Querist : Anonymous (Querist)
26 August 2014 we are Govt. of India undertaking company. we are going to float a tender for "Supply of ambulance for hospital owned by our company for 1 year".
Please, suggest the applicability of service tax.
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Annu Agarwal

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Annu Agarwal (Expert)
26 August 2014 As per my view,service tax shall not be applicable on supply of ambulance as the department has clarified the same wide circular no.CBEC vide Letter F. No. 334/1/2007- TRU dated 28-02-2007 that ambulances are not meant for carrying passengers for hire or reward. Hence, service tax liability does not arise on renting of ambulances.Therefore no service tax shall be levied in your case too.
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