Service tax applicability on transport facility, Service Tax

[S.ROYCHOWDHURY]

My client is a school .It is run by a Trust . (private ) Now the trust has purchased 2 mini buses for carring children from house to school & back . The bus is only useed for carring children . Now the issue is weather this is service taxable under tour operator ? /or comes under service tax under any other clause . Would the situation changed if the trust becomes charitable trust . altenativlly if the trust instead of purchasing the bus hires the bus from pvt contractor and use those buses for carrying children fron house to school & back , will it then also taxable under service tax ? Request for an advice to all the readers.

Posts / Replies

[D Gupta]

No, this activity is not liable to be taxed under the provisions of the service tax.