Service Tax on School/College Bus Fee – An Additional Burden on Parents


Here is another example of how our policy makers are discouraging education in India. It is just how you are paying service tax on the food in AC restaurants, you now have to pay 12% service tax on school/college bus fee.

Till now (before 31 Mar’13), transportation services provided to or by an educational institution are exempted from the service tax. But, now as per the new amendment (according to the Union Budget 2013-14), transportation facility provided by the educational institutions like school/college bus facility to the students comes under service tax net. This has come into effect from April 2013.

According to the amendment, even if a third party contractor is hired to provide transportation, the service tax is applicable.


Free education as well as bus service in US
In our earlier article, Education System in India Vs. Education System in USA, we have mentioned how education has been given less importance in a socialist country like India.

While a purely capitalistic country like United States is designing systems in such a way that education is pursued by all – good education at no cost, free school bus facility (Yes, bus facility is also free. School buses come to pick up and drop kids), and free Internet in most schools.

A socialist nation like India first collects taxes through every method, this tax itself is an example, and does not do what they are supposed to do i.e., providing education free. Instead of giving a tax rebate for not being able to offer quality government school education, (which is why in the first place kids are being sent to private schools), they further tax the high cost alternative with further tax. India is great..!

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