10B.5
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Remittance of Royalties/Technical Fees
(i)Reserve Bank has granted general permission to Indian companies for making payment of technical fee/royalty through an authorised dealer designated for the purpose under the technical collaboration arrangement approved by the Government of India/Reserve Bank, vide its Notification No. FERA.92/91-RB dated 13th September 1991. Indian companies who have obtained approval from Government of India/Reserve Bank for technical collaborations may, therefore, approach the designated authorised dealer for remittance of technical fee/royalty. The application should be supported by a certificate from the companys auditors, in form TCK/TCR, and other documents specified in the form. It will be in order for authorised dealers to allow remittances strictly in accordance with the terms and conditions prescribed by Reserve Bank/Government while approving the collaboration provided a registration number for the collaboration has been allotted by Reserve Bank.
(ii) Authorised dealers should maintain a proper record of the collaboration agreements and the remittances allowed thereagainst which should be preserved for a period of five years from the date of expiry of the agreement.