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actually incurred out of their freight/passage
collections or out of balances held in their foreign currency accounts
maintained abroad with the approval of Reserve Bank [cf. paragraph 12.1]
provided the commission payable conform to the international trade practices/IATA
regulations subject to a maximum of 5% of the freight collections abroad
in the case of shipping companies and 15% of the passage/freight collections
abroad in the case of airline companies made by the foreign agents on
behalf of Indian principals. In case the freight/passage collections or
balances in foreign currency at a particular place are insufficient, applications
for remittance may be made by Indian airline/shipping companies to their
bankers (authorised dealers), supported by documentary evidence. The authorised
dealer may, on application, and subject to verification of the terms of
the agency agreements entered into between the Indian airline/shipping
company and its overseas agent and documentary evidence such as debit
notes, details of passage fare/freight collected etc. allow the remittance
of remuneration/commission to the overseas agents of Indian airline/shipping
companies within the above ceilings. Copies of the documentary evidence
verified should be submitted to Reserve Bank alongwith the relative form
A2 while reporting the transaction in the R Returns for the relevant period.
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