Bus hire for emplyees for daily incoming and outgoing

A limited company taken BUS Service for incoming and outgoing journey for employees . is the comany is liable for payment of Service Tax under RCM ? The vehicle is commercial and the service is purely contractual basis.

Please give me advice....with notification..

 

Replies (2)

nopes..................

In some cases contract carriages get permission or temporary permits to ply as stage carriages. Would such services be taxable?

Specific exemption is available to services of transport passengers by a contract carriage for transportation of passengers, excluding tourism, conducted tours, charter or hire. (Refer entry No. 23 of Exhibit A3).

7.11.5 Is giving of a bus on hire to any person liable to tax?

Giving on hire a bus to state transport undertaking is exempt from service tax. If the bus is given on hire to a person other than a state transport undertaking, it will be taxed.

6.11.6 (sic – it should be 7.11.6) I have a bus with a contract permit and operating the bus on a route. The passengers embark or disembark from the bus at any place falling on the route and pay separate fares either for the whole or for the stages of journey. Am I required to pay tax?

No. However, transport of passengers in a contract carriage for the transportation of passengers, for tourism, conducted tour, charter or hire is taxable.

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