Transportation related services under Mega exemption notification

Transportation related services under Mega exemption notification :

A. Transportation of specified goods by road/rail/vessel: Exemptions granted to transport of goods through rail or a vessel or a goods carriage are presented in the following table: –

Transportation of the following goods by rail / vessel is exempt from service tax	Transportation of the following goods in a goods carriage by a goods transport agency is exempt from service tax
Railway equipments or materials	(i) goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed Rs 1500; or
	(ii) goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed Rs 750.
Transportation of the following goods by rail / vessel / goods carriage is exempt from service tax
(a) agricultural produce (b) milk, salt and food grain including flours, pulses and rice (c) chemical fertilizer, oilcakes and organic manure (d) newspaper or magazines registered with the Registrar of Newspapers (e) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap (f) defence or military equipments (g) cotton, ginned or bailed

Goods carriage means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods.

B. Passenger transportation services: Transport of passengers, with or without accompanied belongings, by –

(a) air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal;

(b) non air-conditioned contract carriage other than radio taxi, for the transportation of passengers, excluding tourism, conducted tour, charter or hire; or

1. Contract carriage means a motor vehicle which carries a passenger or passengers for hire or reward and is engaged under a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorised by him in this behalf on a fixed or an agreed rate or sum-

(a) on a time basis, whether or not with reference to any route or distance; or

(b) from one point to another, and in either case, without stopping to pick up or set down passengers not included in the contract anywhere during the journey,

and includes–

(i) a maxicab; and

(ii) a motorcar notwithstanding the separate fares are charged for its passengers.

2. Radio taxi means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS).

C. Services of giving on hire means of passenger and goods transportation: Services by way of giving on hire –

(a) to a state transport undertaking, a motor vehicle meant to carry more than 12 passengers; or

(b) to a goods transport agency, a means of transportation of goods are exempt from service tax.

State transport undertaking means any undertaking providing road transport service, where such undertaking is carried on by,-

(i) the Central Government or a State Government;

(ii) any Road Transport Corporation established under section 3 of the Road Transport Corporations Act, 1950;

(iii) any municipality or any corporation or company owned or controlled by the Central Government or one or more State Governments, or by the Central Government and one or more State Governments.

(iv) Zila Parishad or any other similar local authority.

Explanation.-For the purposes of this clause, “road transport service” means a service of motor vehicles carrying passengers or goods or both by road for hire or reward.

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