New announcement on royalty:

Posted by | November 25, 2003 | Technology | No Comments

Foreign firms now investing in technology in the Indian Industry will now get a royalty 8% on exports and 6% on domestic sales. This comes in the wake of the liberalised FDI policy adopted by the Government of India; the good news is that the royalty is irrespective of the Indian investments in these ventures. At the moment the royalty is granted only to ventures where the foreign technology holds 100% stake in the company, then the royalty goes to the parent company. If the company owning the technology’s stake is less than 100% then the royalty is for seven years from the time of commencement of the commercial production or ten years from the date of commencement of the agreement whichever comes earlier. This royalty is bought about to bring about an increase in the technology transfer from abroad to India. And it offers a uniform royalty payment to all the technology owned foreign companies. This only shows the steps taken by Government to bring about increased transfer of technologies and know how’s into the economy, such that the Indian companies take advantage of the same and use it to the fullest.

Source: www.economictimes.indiatimes.com

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