Samples given to outside india for customer
This query is : Resolved
sinu kurian
(Querist)
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)
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.
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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