service tax on egg hatcheries

[Hariharan Sundaram]

Dear expert, whether service tax is applicable egg hatcheries on contract basis? Eggs are given to hatcheries in turn chicks are delivered and the considered paid to hatcheries. Whether service tax is applicable on such activity? Kindly clarify

AI Summary

Service tax applies to egg hatcheries on contract basis; hatching eggs not considered agricultural, not on negative list. A query was raised about the applicability of service tax on egg hatcheries operating on a contract basis, where eggs are provided to hatcheries and chicks are returned in exchange for payment. Two experts responded, agreeing that hatching eggs falls under the poultry sector and does not qualify as an agricultural product. Consequently, this activity is subject to service tax as it is not included in the negative list.