MATERIAL SUPPLY FOR TESTING purpose

[SNEHAL SHAH]

Sir,

We had recd. one order( X party -- USA ) . For execute this order we have send material to indian lab for testing on behalf of foreign pary ( X ) . We will received payment for Lab test material & other charges from foreign party there is no issue .

Please guide documents as per excise & Service tax , Export law .

Regards,

S.SHAH

[Mahir S]

1)  Excise duty is required to be paid for samples cleared for testing.

2)  As Other charges details are not provided in the query, hence it is assumed that there is no Service tax liability on your firm.

3) The Assessablle Value shown in the Export documents should consist of all cost including Testing, other charges etc. However, the Purchase Order should specifically mention that the final price in inclusive of all such charges.

4)  It would be appropriate to receive the BRC in one single amount including the cost and all other charges; as per the transaction value shown in the export documents.

AI Summary

Excise duty on samples cleared for testing requires inclusion of testing charges in the export assessable value. Excise duty applies to samples cleared for testing sent to domestic laboratories on behalf of a foreign buyer; service tax liability is not concluded without further detail. Export assessable value and export documents must include testing and other charges, the purchase order should state the final price is inclusive of those charges, and the BRC should be a single consolidated amount reflecting the declared transaction value.