Commission to Overseas Agents on securing Advertisements for Indian newspapers/ periodicals, etc.

(i) Indian newspapers, periodicals etc. are permitted to enter into agreements with their overseas agents through whom advertisements are secured, for payment of commission and other charges actually incurred towards postage, telephone, etc. provided the total amount does not exceed 30% of the gross tariff earned in foreign exchange for such advertisements. Authorised dealers may allow remittances of commission and reimbursement of other charges to the overseas agents of Indian newspapers etc. provided the net amount does not exceed 30% of the gross tariff earned by them in foreign exchange for advertisement in India subject to verification of the relative agreements entered into with their overseas agents, bank certificates of realisation of advertising charges and obtaining an undertaking/certificate regarding payment of Income-tax (cf. paragraph 3B.10)

(ii) Sometimes, the Indian newspapers etc. may enter into agreements with their overseas agents providing for deduction of the amount of commission and other charges as stated above from the gross amount of the bills raised for tariff in foreign exchange. It will be necessary for the Indian newspapers etc. to ensure that the total deductions do not exceed 30% of tariff amount earned and atleast 70% is repatriated to India through normal banking channel and the tax liability of the non-resident is met by the Indian company concerned.