OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE, MADURAI-625 002.

Trade Notice No. 17/2009 Dated: 13.03.2009. Service Tax No. 9/2009

Sub: Taxability of the Schools providing Buses for students of their Schools – Regarding.

It was already clarified vide Board’s letter F.No.137/70/2007-CX.4 dated 26.04.2008 that Schools running transport services for their students are not liable to pay service tax under the category of tour operator. There has been no change in the stand taken by the Board.

2. It is further clarified that the activity of schools to transport children from and back to the School on the cabs owned and run by them does not constitute renting a cab and schools do not fall in the category of rent-a-cab operator. As regards hiring a cab by school from outside, the same has specifically been excluded from the scope of taxable service. Hence, activity of transportation of school children on cabs owned by school or hired by school does not attract service tax.

3. This may be brought to the notice of all constituent members of your trade associations.

(Authority: Board’s letter F.No.137/70/2007-CX.4(Pt) dated 15.12.2008)

(Issued from file C.No.IV/16/06/2009-STU)

(A.S. MEENALOCHANI)

DEPUTY COMMISSIONER.

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