Till 31.5.2016

Service of transportation of passengers,

with or without accompanied belongings,

by a stage carriage

was covered in negative list of services

From 1.6.2016

They were removed from Negative List

However, Non AC Stage Carriage are covered in Mega Exemption Notification


Hence, AC Stage Carriage becomes taxable

Also 60% Abatement has been notified, i.e. AC Stage Carriage has to pay Service tax at 40%*15=6%

This is on the condition that Cenvat Credit is not taken by AC Stage Carriage

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.