What are the payment parameters for foreign technology transfer under the Automatic Route of RBI? How should royalty be calculated?
Payment for foreign technology collaboration by Indian companies are allowed under the automatic route subject to the following limits : Lump sum payments not exceeding US$2 million; Royalty payable being limited to 5 per cent for domestic sales and 8 per cent for exports, without any restriction on the duration of the royalty payments. The royalty limits are net of taxes and are calculated according to standard conditions. The royalty will be calculated on the basis of the net ex-factory sale price of the product, exclusive of excise duties, minus the cost of the standard bought-out components and the landed cost of imported components, irrespective of the source of procurement, including ocean freight, insurance, custom duties, etc. RBI has delegated the powers to ADs to make payment of royalty under such agreements. The requirement of registration of the agreement with the Regional Office of RBI has been done away with.
Related Questions
- What are the payment parameters for foreign technology transfer under the Automatic Route of Reserve Bank of India? How should royalty be calculated?
- What are the payment parameters for foreign technology transfer under the Automatic Route of RBI? How should royalty be calculated?
- What are the parameters for foreign technology transfer under the Automatic Route of RBI ?
