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 ?

[YAGAY andSUN]

As per the master circular of the RBI, the commission up-to 12.50% of the FOB value of the exported goods are allowed.

Please provide me your e-mail id, so that I could share it with you.

Futher, please tell me whether the amount of commission had been mentioned on the S/B or Not?  As this the pre-condition to allow the commission on export consignment by the RBI as well as by the FEMA.

[satbir singhwahi]

Thank you , Pradeep Ji .

My email Id      [email protected]     mobile 09814331105

The commission is declared is declared shipping bill .But A.O.  is adamant to disallow it.

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.