NTF. NO. G.S.R. 397(E), DT. 01/05/2003

Commission on Exports under State Credit

In exercise of the powers conferred by Section 5 and sub-section (1) and clause (a) of Sub-section (2) of Section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in consultation with Reserve Bank, the Central Government having considered it necessary in the public interest, makes the following amendment to the Foreign Exchange Management (Current Account Transactions) Rules, 2000, namely :–

1. Short title and commencement.

(1) These rules may be called the Foreign Exchange Management (Current Account Transaction) (Second Amendment) Rules, 2003.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Foreign Exchange Management (Current Account Transaction) Rules, 2000,

(a) in schedule 1, for item 6, the following shall be substituted, namely :–

“6 Payment of commission of exports under Rupee State Credit Route, except commission up to 10% of invoice value of exports of tea and tobacco.”;

(b) in Schedule III, in item 7,

(A) for clause (I), the following clause shall be substituted , namely:–

“(i) exceeding net salary (after deduction of taxes, contribution to provident fund and other deductions) of a person who is resident but not permanently resident in India and –

(a) is a citizen of a foreign State other Pakistan; or

(b) is a citizen of India, who is on deputation to the office or branch or subsidiary or joint venture in India of such foreign company”,

(B) in the Explanation, for the words “employment of “, the words “employment or deputation of” shall be substituted.

Sd/-
(G. S. Dutt)
Jt. Secy.

[F. No. 1/5/EC/2000 Vol. II]

Foot note: – The principal rules were published in the official gazette vide G.S.R. 381(E) dated 3rd March, 2000 in part II, Section 3, Sub-Section (I) and subsequently amended vide S.O. 301(E) dated 30th March, 2001.

(Please refer CIR. NO. 71/2003-04-RB, DT. 20/02/2004 - Export of Goods to Russia against Repayment of State Credits in Rupees-Payment of Agency Commission)

(Please refer Ntf. No. G.S.R. 731(E), Dt. 05/09/2003 for further amendments in the Foreign Exchange Management (Current Account Transactions) Rules, 2000)

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