Exemption available to an incubatee under service tax
As per the finance act, 1994 and as per negative list entry, services provided by incubatee are exempt services and are not liable for payment of service tax up to the total business turnover of Rs. fifty lakh in financial year if it satisfied following conditions –
- The total business turnover of the incubatee did not exceed Rs fifty lakh in the preceding financial year.
- A period of three years has not elapsed since the date of entering into an agreement as an incubatee.
“Incubatee” means an entrepreneur located within the premises of a technology business incubator (TBI) or science and technology entrepreneurship park (STEP) recognized by national science and technology entrepreneurship development board (NSTEDB) of the department of science and technology, government of India and who has entered into an agreement with the TBI or STEP to enable himself to develop and produce hi-tech and innovative products.