Categorization as Transport Vehicles

• School buses are classified as transport vehicles under Indian motor laws.
  
• They fall under the commercial vehicle category for taxation purposes.
  
• Road tax is applicable even if the bus is privately owned but used for school transport.
  
• The tax is based on passenger capacity and vehicle classification.
  
• All school buses must be registered and taxed according to state transport rules.
  

State-wise Variation in Tax Rates

• Road tax for school buses varies across Indian states.
  
• Some states offer concessional or fixed tax rates for educational institutions.
  
• Other states apply tax based on seating capacity and engine size.
  
• Few states charge a lump sum annual tax, while others use quarterly cycles.
  
• Each state publishes its own slab and policy through official circulars.
  

Seating Capacity-Based Slabs

• Tax is often calculated based on the number of seats in the bus.
  
• Vehicles with up to 13 seats are taxed at a lower rate.
  
• Medium and large buses with 14 to 40+ seats attract higher charges.
  
• States may have fixed per-seat tax or charge a percentage of the bus cost.
  
• Higher seating capacity directly increases the applicable road tax.
  

Concessions for Educational Use

• Some states offer tax rebates for buses operated by registered schools.
  
• Exemption or reduction may apply if the vehicle is used exclusively for student transport.
  
• Documentation such as school affiliation and proof of usage is required.
  
• The concession is subject to periodic verification and renewal.
  
• Government-recognized institutions are more likely to receive benefits.
  

Compliance and Renewal Requirements

• Road tax must be paid annually or as per the state’s prescribed cycle.
  
• Valid tax payment is mandatory for fitness certificate renewal.
  
• Non-payment results in fines, suspension of permits, or seizure of the vehicle.
  
• Tax receipts must be presented during inspections and road checks.
  

School buses must also comply with safety and permit regulations alongside tax compliance.