Hiring of Non AC Buses to Company for Transport of Staff is taxable under "Rent-a-cab" Service

Last updated: 28 August 2021

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The Maharashtra Authority of Advance Ruling has determined that providing non-air-conditioned buses for staff transport under a contract carriage arrangement is a taxable service. Even though the bus owner retains ownership, operating the buses under the client's instructions means it falls under 'rent-a-cab' services. Consequently, the exemption for passenger transportation services does not apply.

Court :
Maharashtra Authority of Advance Ruling (MAAR)

Brief :
In M/s. Shailesh Ramsunder Pande (Pooja Vaishnavi School Bus Service) [GST/ARA-66/2019-20/B-49 dated August 20, 2021], M/s. Shailesh Ramsunder Pande (Pooja Vaishnavi School Bus Service) ("the Applicant") has sought a clarification on Goods and Services Tax ("GST") applicability on the contract of supplying Non- Air Conditioned ("Non-AC") Buses and whether exemption is available for stated service under SI No. 15 Heading 9964 of Notification No. 12/2017 – Central Tax (Rate) dated June 28, 2017 ("Services Exemption Notification") is applicable in the case.

Citation :
GST/ARA-66/2019-20/B-49 dated August 20, 2021

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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