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
Service tax non applicability on custom hatching charges affirmed as non taxable under departmental circular for incubation services. Service tax is not applicable to charges for custom hatching via incubators where eggs are received from clients and returned as day old chicks; reliance is placed on the departmental circular dated 29 7 2008 for that tax treatment, and no service tax rate is cited in the response. (AI Summary)