Contract hatching of eggs would not fall in any of the taxable service – Board clarifies
CBEC has clarified to the DGST and of course the field formations that contract hatching of eggs would not fall under either Business Auxiliary Service or under Business Support Service. While the Board is quick on the issue of eggs and the BAS, it is still under intoxication in respect of service tax on bottling of Alcohol on behalf of the brand owners under BAS. It is nearly two years since the draft circular was issued and nobody knows what has happened to the Draft Circular.
While the Board has clarified that contract hatching of eggs would not fall under any of the taxable service, it has not explained, why it would not.
More than two years ago, in - 22 02 2006, we had raised the question, The Bird Flu - the taxman not chickening - Are poultry Farms covered under Service Tax ambit?
Now Board has clarified that contract hatching of eggs is not taxable, but what about the mother of the eggs – yet another clarification on the way?
CBEC Letter F. No. 137/92/2008-CX.4 , Dated: 29 th July, 08