Contract carriage for employees_taxability of service

Dear all,

A company is hiring vehicles for the purpose of movement of employees from place of residence to manufacturing units and material movement between manufacturing units. Vehicles in the sense, mean Auto, Car, Maxi cab, Omni for employee movement and TATA 407 and Tata Ace for material movement.

Whether the above employee movement is a contract carriage?

What is the taxability of above service under S.Tax provisions?

Is it exempted, If so substantiate it.

Thanks in advance

Regards

Manikanta S

Articled Assistant