Service Tax - Hiring of Buses
YESTERDAY'S DDT carried an analysis on the levy of Service Tax on hiring of buses. We have located an order of the Lucknow Bench of the Allahabad High Court wherein the Hon'ble High Court held, “In the present case respondents had to take a decision on the basis of definition provided by Section 65 of the Finance Act 1994 of the word rent a cab operator. Accordingly, we are of the view that the service tax is payable by a private bus operator whose buses are attached with the UPSRTC, through individual agreements. UPSRTC does not seem to be aggrieved party, come into the way of respondent to collect service tax from the private bus operator, whose buses are said to attach with the UPSRTC and falls within the category of rent a cab operator.”