Agency commission on import of goods - remittence

[satbir singhwahi]

agency commission inadvertantly not declared in shipping bill . whether commission can be remitted in view of this mistake.

[Surender Gupta]

You read the para C-26 of the master circular issued by RBI (https://www.taxtmi.com/circulars?id=6379%29which is read as udner:
AD Category – I banks may allow payment of commission, either by remittance or by deduction from invoice value, on application submitted by the exporter. The remittance on agency commission may be allowed subject to the following conditions: a) Amount of commission has been declared on GR/SDF/PP/SOFTEX form and accepted by the Customs authorities or Ministry of Information Technology, Government of India / EPZ authorities as the case may be. In cases where the commission has not been declared on GR/SDF/PP/SOFTEX form, remittance may be allowed after satisfying the reasons adduced by the exporter for not declaring commission on Export Declaration Form, provided a valid agreement/written understanding between the exporters and/or beneficiary for payment of commission exists. b) The relative shipment has already been made.

AI Summary

Agency commission remittance permitted if declaration accepted or valid agreement exists and shipment is completed. AD Category I banks may permit remittance of agency commission by remittance or invoice deduction where the commission was declared on GR/SDF/PP/SOFTEX and accepted by customs or relevant authorities; if not declared, remittance may be allowed after the bank is satisfied of the exporter's reasons and where a valid agreement exists between exporter and beneficiary, provided the related shipment has already been made.