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<h1>India Sets Royalty Limits for Foreign Trademarks: 2% on Exports, 1% on Domestic Sales, No Tech Transfer Required.</h1> The circular outlines guidelines for the payment of royalties on the use of trademarks and brand names of foreign collaborators under India's automatic route. It specifies that up to 2% royalty can be paid on exports and 1% on domestic sales without technology transfer. If technology transfer occurs, the royalty for trademark use is included in the overall royalty payment. The government has established a formula for calculating royalties, which considers net sales by deducting agents' commissions, transport costs, taxes, and imported raw material costs. This information is intended for investors.