Ceiling on agency commission abroad
Post 1 of 5
Hi!,
Is there any ceiling on agency commission that we can pay for sales to agents abroad ? I understand that it is limited to 12.5% of the FOB value as per RBI.
If someone demands a higher commission then what do we do ? And what if the agent takes care of after sales service.
this question pertains to exports from India.
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31 Oct 2008 03:59
Post 2 of 5
You can try a separate service contract or routing the export contract though a third party/sister concern. Ofcourse you have to consult all relevant experts before jumping in.
31 Oct 2008 08:39
Post 3 of 5
Quoting from [Swamy]:How do you want to pay the commission?
Hi!,
Is there any ceiling on agency commission that we can pay for sales to agents abroad ? I understand that it is limited to 12.5% of the FOB value as per RBI.
If someone demands a higher commission then what do we do ? And what if the agent takes care of after sales service.
this question pertains to exports from India.
RBI has laid down guide lines for paying commission in foreign currency.
Your annual Income Tax returns will be scrutinized if you show higher commission than the prescribed set guide lines.
You can route your payments under different heads. Yes, 'After Sales Service' could be one of them.
*Promotional Activities and many other heads.
Your Chartered Accountant is the best person to solve your case and guide you in the right direction.
![[em7]](http://img.alibaba.com/images/eng/style/icon/emoticons_shy.gif){kind=icon}
01 Nov 2008 06:15
Post 4 of 5
Quoting from [Swamy]:
Hi!,
Is there any ceiling on agency commission that we can pay for sales to agents abroad ? I understand that it is limited to 12.5% of the FOB value as per RBI.
If someone demands a higher commission then what do we do ? And what if the agent takes care of after sales service.
this question pertains to exports from India.Hot Topic Recommend
09 Nov 2008 15:51
Post 5 of 5
Quoting from [Swamy]:
Hi!,
Is there any ceiling on agency commission that we can pay for sales to agents abroad ? I understand that it is limited to 12.5% of the FOB value as per RBI.
If someone demands a higher commission then what do we do ? And what if the agent takes care of after sales service.
this question pertains to exports from India.Hot Topic Recommend
![[em17]](http://img.alibaba.com/images/eng/style/icon/emoticons_shake_hands.gif){kind=icon}
Hello from SHOP TILL YOUR DROP,USA
Sir wat for Company do you have?
Wat are the Sales in your countery?
And for wat your Countery looking for to bring your Sales out?
Please sent me a ASAD,TO MINE PRIVED EMAI, and I'm can help you,
Help out with problem all about commissoin sale?
09 Nov 2008 16:01
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