https://www.taxtmi.com/caselaws?id=763787 The Appellate Tribunal under SAFEMA at New Delhi dismissed the appeal in a FEMA contravention case involving excessive royalty remittance to overseas parties. The respondents were charged with violating Section 5 of FEMA and Rule 4 of FEMA (Current Account Transactions) Rules, 2000, for remitting royalty exceeding the 5% limit on local sales. The Tribunal upheld the Adjudicating Authority's decision, finding that actual sale prices disclosed in CST and State Sales Tax Returns were correctly considered for calculating royalty percentage. The Tribunal rejected the Enforcement Directorate's argument to deduct commission from gross sale value, distinguishing the cited precedent as relating to net income calculation rather than net sale price determination. en-us Mon, 14 Oct 2024 00:00:00 +0530 Fri, 27 Dec 2024 16:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763787 The Appellate Tribunal under SAFEMA at New Delhi dismissed the appeal in a FEMA contravention case involving excessive royalty remittance to overseas parties. The respondents were charged with violating Section 5 of FEMA and Rule 4 of FEMA (Current Account Transactions) Rules, 2000, for remitting royalty exceeding the 5% limit on local sales. The Tribunal upheld the Adjudicating Authority's decision, finding that actual sale prices disclosed in CST and State Sales Tax Returns were correctly considered for calculating royalty percentage. The Tribunal rejected the Enforcement Directorate's argument to deduct commission from gross sale value, distinguishing the cited precedent as relating to net income calculation rather than net sale price determination. Case-Laws FEMA Mon, 14 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763787