MATERIAL SUPPLY FOR TESTING purpose, Central Excise

[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

Posts / Replies

[Naveed 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.