of all Authorised Dealers is invited to Para 10 Chapter
XIV of the Foreign Exchange Manual containing the definition
and procedure for payment of Royalty and Technical Fee
in the manufacturing section.
It has now been decided that remittance of Royalty/Franchise
and Technical Fee or service Charges may be allowed in
the newly opened sectors for Foreign Direct Investment
(FDI) as per Government's Investment Policy i.e. Agriculture,
Social Infrastructure and service projects including international
food chains subject to certain guidelines Accordingly
Para 10 of Chapter XIV of Foreign Exchange Manual is amended
as under :-
The caption of Para 10 may be changed as "Remittance
of Royalty/Franchise and Technical Fees"
The words "in the Manufacturing sector" may
be inserted after the word "Fee" in the first
line of Para 10(a) (I).
The Following Para may be inserted after Para 10(a)(I)
as Para 10(a)(II) and the existing Para 10(a)(II) and
10(a)(III) may be renumbered as 10(a)(III) and 10(a)(IV)
The remittance of Royalty/Franchise and Technical Fee
or Service Charges in Agriculture, Social Infrastructure
and Service Sector projects including international food
chains may be allowed according to the following guidelines