Source Verified Car & Bus Rental Services for Corporate Travel, Group Transport & Tourism Across India

What is the difference between a contract carriage permit and a tourist vehicle permit for car and bus rentals?

A: A contract carriage permit allows vehicles to be hired for a specific journey under a pre-agreed contract (point-to-point). A tourist vehicle permit specifically covers tourism-related travel and is required for vehicles marketed as 'tourist vehicles.' For interstate travel, both types require an All-India Tourist Permit (AITP) endorsement. Always verify which permit type the specific vehicle holds.

What GST rate applies to car and bus rentals for corporate use in India?

A: Chauffeur-driven car and bus rentals (with operator/driver) attract 5% GST under SAC 9964. Self-drive car rentals (without driver) attract 18% GST under HSN 9985. Businesses can claim input tax credit on rental services used for business purposes, subject to Section 17(5) restrictions. Confirm HSN/SAC codes on invoices before filing.

How many passengers can legally travel in a tempo traveller in India?

A: The legal passenger capacity is defined in the vehicle's RTO registration certificate. Standard configurations: 9-seater (9 passengers + driver), 12-seater (12 + driver), 17-seater (17 + driver). Exceeding the registered capacity violates the Motor Vehicles Act, voids insurance, and creates personal liability for all parties. Always verify the registration certificate matches the claimed seating.

What is the AITP and when is it mandatory for bus rentals?

A: The All-India Tourist Permit (AITP) allows a bus or tempo traveller to operate across state borders throughout India. It is mandatory whenever a chartered vehicle crosses state boundaries. Without AITP, the vehicle is detained at state check-posts and all passengers are stranded. Always confirm AITP availability for any interstate group travel booking.

What should a corporate travel policy specify for car and bus rental procurement?

A: A sound corporate travel policy should define: approved vehicle categories by employee grade, maximum per-km rate benchmarks by vehicle type, advance booking windows (minimum 24 hours for cars, 72 hours for buses), mandatory GST invoice requirement, approved operator list from verified sources like Trade4Asia, and accident reporting protocol for corporate hirer liability management.