overseas agency commission

[krishna murthy]

Is payment of commission to overseas agent permitted before the shipment is made.  i.e., can the commission be paid as advance.

Regards

[YAGAY andSUN]

Advance Remitance for Import of Services:-

Kindly refer para 12 C.2 of the Master Circular of Goods, Services, Currency and Merchanting Trade for allowing advance remittance for import of services without any ceiling subject to certain conditions.

 

AI Summary

Advance remittance for import of services permits pre-shipment commission payments to overseas agents, subject to prescribed conditions. Payment of commission to an overseas agent can be made before shipment by classifying it as an advance remittance for import of services; the Master Circular permits such advance remittances without a ceiling provided the procedural and documentary conditions in para 12 C.2 are satisfied.