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

Indian Party Seeks Guidance on Excise Duty, Service Tax, and Export Laws for Testing Materials for US Client A party from India sent materials to a local lab for testing on behalf of a foreign client from the USA. They seek guidance on documentation requirements under excise, service tax, and export laws. The response advises that excise duty is applicable on samples cleared for testing. Since other charges are unspecified, service tax liability is assumed absent. The export documents should reflect all costs, including testing, and the purchase order should clearly state the inclusive final price. It is recommended to receive the Bank Realization Certificate (BRC) as a single amount covering all costs as per the export documents.