Incubatee services under Mega exemption notification :

Services provided by an incubatee up to a total turnover of Rs 50 lakh in a financial year subject to the following conditions, namely:-

(a) the total turnover had not exceeded Rs 50 lakh during the preceding financial year; and

(b) a period of three years has not elapsed from the date of entering into an agreement as an incubate

are exempt from service tax.

Incubatee means an entrepreneur located within the premises of a Technology Business Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognized by the 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 the STEP to enable himself to develop and produce hi – tech and innovative products.