Commission agent fema

Shridhi Jain (Company Secretary)     12 June 2013

There is an indian commission agent of foreign company. The arrangement is that the indian agent supplies the machinery to indian users on behalf of foreign company and charge some commission.

Now Indian agent sell the machinery and get the sale proceed for remittance to foreign company. He deducts the amount of the commission from the sale proceed and transfer the remaining amount to the foreign company. However, the invoice raised by the foreign company is of full amount but the sale proceeds remitted are less by the commission amount.

Now I just want to ask, is that possible ?? It is urgent, pls reply. In case of any clarification on my query pls ask me.