Service tax on bus operator

SIR

 

MY CLIENT HAS ENTERED AN AGRREMENT WITH A CORPORATE HOUSE TO TRANSPORT THEIR EMPLOYEES IN NON AIR CONDITIONED BUS.  THE EMPLOYEES WILL BE PICKED FROM A PARTICULAR PLACE AND SHALL BE DROPED AT A SPECIFIED DESTINATION. THE BUS IS OWNED BY MY CLIENT AND  ALL EXPENSES REGARDING DIESEL,REPAIR,INSURANCE AND TAXES SHALL BE BORN BY MY CLIENT, THE AMOUNT SHALL BE PAID AS FIXED AMOUNT PM TO MY CLIENT . IS THE PROVISION OF SERVICE TAX ON THIS AGREEMENT IS APPLICABLE,IF SO UNSER WHICH CLAISE.

 

CA RAJESH GUPTA

Replies (1)

Agreement is legal document and having the provision in this regard. You are falling under Tour and travel agency and having the option abate and non abate. In this regard choose any option according agreement which is made your client and service receiver.

 

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