New Delhi: Large royalty payments made by some Indian companies to overseas parents are on the central government’s radar, though the new regime has not decided whether to put a cap on them. The previous United Progressive Alliance (UPA) government had contemplated bringing back such limits that were in place till 2009. The government, though, did not adopt the measure as it may have been viewed as a retrograde step.
Image: Before 2009, companies could only remit royalty involving foreign technology transfer up to 5% on domestic sales and 8% on exports, and up to 1% for domestic sales and 2% for exports when no technology transfer was involved, such as on account of brand value. Photo: Ramesh Pathania/Mint Read more at: http://www.livemint.com/Companies/RNBHfLKqRmcZZpnrBK9mAP/Surging-royalty-payments-to-parent-firms-abroad-on-govt-rada.html?utm_source=copy
