foreign agent commission

[satbir singhwahi]

Assessee has paid foreign agent commission , and has submitted shipping bill copy which reflects commisssion amount, bank TT copy of payment & invoice of the agent . The A.O. wants to disallow this foregn commission saying nature of services not proved. Whether the evidence given  of TT, SB & inv. not sufficient. Any views ?

AI Summary

Assessing Officer Challenges Foreign Agent Commission Despite Compliance with RBI Circular on FOB Value Limits An assessee paid a foreign agent commission and provided supporting documents, including a shipping bill, bank transfer copy, and agent invoice. The Assessing Officer (A.O.) intends to disallow the commission, questioning the nature of services provided. A respondent referenced an RBI master circular, stating commissions up to 12.50% of the FOB value are permissible, contingent on the commission being declared in the shipping bill. Despite compliance, the A.O. remains firm in disallowing the commission. The discussion seeks clarity on whether the provided evidence suffices to justify the commission.