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Exchange Control
& Remittance:
Remittance of Royalty, Technical Know-How
and Technical Assistance Fees :
No prior permission of BOI is required
for entering into agreements for remitting
fees for the purpose of royalty, technical
know-how and technical assistance if the
total fees and other expenses connected
with technology transfer (service fee,
marketing commission etc.) are within
the following prescribed limits:
-
For new projects such
fees and other expenses should not exceed
an aggregate limit of 6% of the CIF
value of imported machinery.
-
Recurrent annual
fees for royalties and other expenses
such as fees for technical know-how,
technical assistance, operational services,
marketing of products etc. should not
exceed an aggregate limit of 6% of the
previous year's sales of the firms are
declared in the tax return.
Once the technical transfer
agreements falling within the above limits
are signed, these are required to be furnished
to BOI for registration.
Proposals which are covered
under the prescribed limits will require
prior approval of BOI for which application
have to be submitted along with necessary
documents and copy of the relevant draft
agreement.
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