Is payment of royalty to parent companies and payment of royalty for use of trademarks and brand name without technology transfer covered under the Automatic Route of RBI?
Ans. Yes. Payment of lumsum up to US$ 2 million and/or royalty up to 8% on exports and 5% on domestic sales by wholly owned subsidiaries to offshore parent companies is allowed under the automatic route without any restriction on the duration of royalty payments. Payment of royalty up to 2% for exports and 1% for domestic sales is allowed under automatic route on use of trademarks and brand name of the foreign collaborator without technology transfer.
Related Questions
- Is payment of royalty to parent companies and payment of royalty for use of trademarks and brand name without technology transfer covered under the Automatic Route of RBI?
- What are the payment parameters for foreign technology transfer under the Automatic Route of RBI? How should royalty be calculated?
- Whether royalties for technology transfer and other royalty can be paid for same product on use of trademarks and brand name?
