IS service tax applicable on Custom Hatching

[Kishore Kumar]

Dear Sir,

Is service Tax Applicable on Custom Hatching Charges received for Hatching through Incubators. Normally we received Hatching from our Clients and we hatch the same in our machines convert it into Day old Chick and return to our Client. for Which We charge Customs Hatching Charges. Is Service Tax is applicable on the same. if Yes what is rate of Tax and copy of notification if any.

Regards

Kishore

AI Summary

Service Tax Not Applicable on Custom Hatching Charges for Incubating Eggs into Chicks, Circular Clarifies A query was raised regarding the applicability of service tax on custom hatching charges received for hatching eggs through incubators. The process involves receiving hatching eggs from clients, incubating them into day-old chicks, and returning them to the clients for a fee. The question was whether service tax applies to these charges and, if so, what the rate is. The response provided indicated that service tax is not applicable, referencing a circular dated July 29, 2008.