Indore: Buses not owned by schools may face RTO tax ‘wrath’

Indore: Buses not owned by schools may face RTO tax ‘wrath’

FPJ BureauUpdated: Wednesday, May 29, 2019, 01:06 AM IST
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Indore: As if the increasing school bus fee with rising tuition fee was not enough. Regional Transport Office has decided to remove subsidy from buses that are running for schools on contract basis.  The removal of subsidy would jack up tax on school buses from Rs 12 to Rs 2,400 per seat per annum. The decision to increase tax on buses plying for schools will directly hit parents as schools will not be paying off the tax from their profits.

The decision is confined to buses that are not owned by schools. School buses owned under school names and run for students will continue to enjoy subsidy. However, owning a school bus comes with maintenance charges and new standards set after DPS bus accident. Many schools decide to outsource transport due to various reasons.  These schools and contract-based transport services are likely to become dearer in the next session. On an average, school bus fee charged per ward for a month is between Rs 2,000 to Rs 2,500 per month.

If schools are running buses on contract, bus fare can go up fairly considering the levied tax increase of about 19900%. The news is likely to bother parents, who are generally even denied information about third-party contracts of transportation by school management. Even many school principals are unaware about the information of transport contracts as administrative officer and management decides to keep these contracts incognito. “Most schools cannot afford to own their entire fleet, so at least 40 per cent is outsourced on contracts, which is now going to affect parents indirectly,” Anurodh Jain, parent association president said.

Further, the final differences in bus fee can be known only after the next session begins and updated fees are being informed to parents. “It is also possible that schools increase their overall fee based on this charge to cover up their expenses,” Jain said.

Committee name will NOT do!
Buses which that are not directly connected to schools, i.e. owned by school under their name will not be receiving subsidy anymore. Schools running buses on samiti (committee) names will not get the benefit of subsidy and must pay full tax from now on. The orders have been released for the same and will be affecting schools in the coming session.
ARTO Archana Mishra

BUMPY RIDE
If schools are running buses on contract, bus fare can go up fairly considering the levied tax increase of about 19900%. The news is likely to bother parents, who are generally even denied information about third-party contracts of transportation by school management. Even many school principals are unaware about the information of transport contracts as administrative officer and management decides to keep these contracts incognito.

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