TECHNICAL TESTING AND ANALYSIS (EXCLUDING HEALTH AND DIAGNOSTIC

TESTING); TECHNICAL INSPECTION AND CERTIFICATION.

Date of Introduction : 01.07.2003 vide Notification 07/2003 dated 20.06.2003

Definitions :

(a) technical testing and analysis means any service in relation to physical, chemical,
biological or any other scientific testing or analysis of goods or material or any immovable
property, but does not include any testing or analysis service provided in relation to human
bein gs or animals;

(b) technical testing and analysis agency means any agency or person engaged in
providing service in relation to technical testing and analysis;

(c) 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;

(d) technical inspection and certification agency means any agency or person engaged in
providing service in relation to technical inspection and certification.

(e) Taxable service means any service provided to any person -

(i) by a technical testing and analysis agency, in relation to technical testing and analysis;

(ii) by a technical inspection and certification agency, in

relation to technical inspection and certification; and the term service provider shall be
construed accordingly.
Value of taxable service: Value of taxable service shall be the gross amount charged by the
service provider of such service rendered by him.

Scope of Service :

(i) Services provided by Technical Testing and Analysis Agency in relation to technical testing
or analysis.
(ii) Services provided by technical inspection and certification agencies in relation to
technical inspection and certification.
Boards Clarification : Circular No. 59/8/2003 dated 20.06.2003

A doubt has been raised whether certification given in respect of immovable property should
fall under the purview of technical inspection and certification services. In this regard it
may be recalled that earlier, CBEC vide its order No.1/1/2002, dated 26.02.2003, issued
under Section 37B (of the Central Excise Act as made applicable to service tax) had clarified
that certification given under authority of any code or statute can not be considered as a
consulting engineer service. However, the new service included in 2003 budget, namely
technical inspection and certification services would cover certification of all types including
that of immovable property. Therefore, it is clarified that such services become taxable from
the notified date.

Technical testing and analysis

(w.e.f. 1.7.2003)
What is taxable - 65(105)(zzh)
Any service provided or to be provided to any person, by a technical testing and analysis agency, in
relation to technical testing and analysis;
Who is the receiver of service
Any person
Who is the provider of service
A technical testing and analysis agency
Meaning of Technical Testing and Analysis - 65(106)
"technical testing and analysis" means any service in relation to physical, chemical, biological or any
other scientific testing or analysis of goods or material or information technology software orany
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
Meaning of Technical testing and analysis agency - 65(107)
"technical testing and analysis agency" means any agency or person engaged in providing service in
relation to technical testing and analysis;
Meaning of information technology software - 65(53a)
"information technology software" means any representation of instructions, data, sound or image,
including source code and object code, recorded in a machine readable form, and capable of being

manipulated or providing interactivity to a user, by means of a computer or an automatic data

processing machine or any other device or equipment;
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A. As per Paragraph No 6. of Circular No. 96/7/2007 dated 23/8/2007 states that :"6. This circular supersedes all circulars, clarifications and communications, other than Orders
issued under section 37B of the Central Excise Act, 1944 (as made applicable to service tax by
section 83 of the Finance Act, 1994), issued from time to time by the CBEC, DG (Service Tax) and
various field formations on all technical issues including the scope and classification of taxable
services, valuation of taxable services, export of services, services received from outside India,
scope of exemptions and all other matters on levy of service tax. With the issue of this circular, all
earlier clarifications issued on technical issues relating to service tax stand withdrawn."