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

Foreign agent commission requires shipping bill disclosure to qualify under export regulatory and compliance requirements. Assessee produced a shipping bill declaring the foreign agent commission, a bank telegraphic transfer as payment evidence, and the agent's invoice, yet the assessing officer seeks to disallow the commission for alleged non proof of services. Regulatory guidance allows a capped commission for export consignments provided the commission is declared on the shipping bill; satisfaction of that shipping bill disclosure and related export documentation is the operative condition for recognition of the commission.