Royalty payment
This query is : Resolved
12 November 2013
If we make royalty payment on suppose 2.5% on sales velue, do we need to reduce the Imported raw material Components and other bought out items value while computing royalty, pls advise eg as under
if sales is 10000 royalty @ 2.5% = 250/-
if material used in above material sold is
imported material used is Rs 80/-
indeginous material is Rs 30/-
Total material used Rs 110/-
the eligible royalty would be Rs 140/- (250 less 110/-)
Pls advise
if sales is 10000 royalty @ 2.5% = 250/-
if material used in above material sold is
imported material used is Rs 80/-
indeginous material is Rs 30/-
Total material used Rs 110/-
the eligible royalty would be Rs 140/- (250 less 110/-)
Pls advise
Nikhil Kaushik
(Expert)
12 November 2013
that shall depend on your agreement with the person you are making royalty payment to. It can be based on the gross value or on the net value addition depending on the terms of the contract.
12 November 2013
Our contract is 2.5% of sales value, but while preparing the TCR form which we submit to Bank the where inthe annexure we have to state Net Ex factory value less landed cost of imp contents and standard bought out used in manufactur of product, I am confused whether to follow this guideline or agreement
22 July 2025
https://docs.google.com/document/d/1XMJdDA5dR7lKJnsiPCZDnFU9tMiI8VOmV_ak-tStp58/edit?usp=sharing
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