Technical testing and analysis Services under Service tax
Technical testing and analysis services are introduced under Finance Act, 1944 on 01/07/2003 vide Notification No. 7/2003-S.T.,dated 20/06/2003.
Definition and scope of technical testing and analysis services:-
“Taxable Service” means any service provided or to be provided to any person, by a technical testing and analysis agency, in relation to technical testing and analysis.
“Technical Testing and Analysis” means any service in relation to physical, chemical, biological or any other scientific testing or analysis of information technology software or any immovable property, but does not include any testing or analysis service provided in relation to human beings or animals;
Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this clause:
“technical testing and analysis” includes testing and analysis undertaken for the purpose of clinical testing of drugs and formulations; but does not include testing or analysis for the purpose of determination of the nature of diseased condition, identification of a disease, prevention of any disease or disorder in human beings or animals.
“Technical Testing and Analysis Agency” means any agency or person engaged in providing service in relation to technical testing and analysis.
“Technical inspection and certification” means inspection or examination of goods or process or material or any immovable property to certify that such goods or process or material or immovable property qualifies or maintains the specified standards, including functionality or utility or quality or safety or any other characteristic or parameters, but does not include any service in relation to inspection and certification of pollution levels;
Nature of services covered
- Services should be provided or agreed to be provided by way of technical testing or analysis of newly developed drugs, and it includes vaccines and herbal remedies.
- Technical testing or analysis of newly developed drugs should be conducted on human beings.
- Such technical testing or analysis should be conducted by an approved clinical research organisation.
- Clinical research organisation should be approved by drug controller general of India (DCGI)
Value of taxable service: Value of taxable service shall be the gross amount charged by the service provider of such service rendered by him.