Samples given to outside india for customer

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01 July 2025 If the sample sale to a customer outside India is less than 5 kg, what are the compliance requirements regarding FEMA and GST? If come under the angle of 194R (TDS)

Aashok Kumar Sharma online

Aashok Kumar Sharma

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12 August 2025 1. FEMA Compliance
Sending samples abroad is considered as export of goods under FEMA.
Even if samples have negligible value or weight (<5 kg), you need to:
Ensure shipment through authorized dealer or authorized courier.
Maintain export documentation like shipping bill/airway bill.
Record the transaction properly in your books and export records.
No specific FEMA permission is generally required for sending low-value samples, but you must comply with regular export formalities.
2. GST Compliance
Export of goods (samples) is a zero-rated supply under GST.
You can export without payment of GST (under LUT/Bond) or pay IGST and claim refund later.
For samples sent free of cost:
If samples are given free and no consideration is received, it may be considered supply without consideration.
Still, export documentation is required to claim zero-rated supply benefits.
HSN classification and invoice must mention it is a sample supply.
Since samples are sent outside India, GST on export is zero-rated.
3. TDS under Section 194R
Section 194R mandates TDS on benefits or perquisites provided to a resident by a resident.
Since the recipient of samples is outside India (non-resident), Section 194R TDS is not applicable because:
The section applies only when benefits/perquisites are provided to a resident.
Therefore, no TDS under 194R on samples sent to non-resident customers.

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