TaxTMI 
TaxTMI 
A Company based in India has sent some samples abroad for testing purpose
Test will be conducted in London and report will be sent to india
Is Indian Company required to pay RCM on the invoice for testing charges
GST on testing charges
16 Jul 2019 
6 Replies 
9614 Views Asked by
Reverse charge applies to cross-border testing services; recipient must discharge IGST as import of service.
The sending of samples abroad for testing that results in a report received in India constitutes an import of services, making IGST payable under the reverse charge mechanism by the Indian recipient. Where samples were exported under a GR waiver form, compliance may require a destruction certificate, bringing the samples back to India, or foreign remittance to satisfy export formalities. (AI Summary)
The sending of samples abroad for testing that results in a report received in India constitutes an import of services, making IGST payable under the reverse charge mechanism by the Indian recipient. Where samples were exported under a GR waiver form, compliance may require a destruction certificate, bringing the samples back to India, or foreign remittance to satisfy export formalities. (AI Summary)