TCR [Paragraph 10 B.5(i) ] Certificate for payment of royalty under foreign technical collaboration 1. This certificate has reference to the foreign technical collaboration between M/s.____________________ (hereinafter referred to as "Indian company") and M/s.____________________ (hereinafter referred to as "overseas collaborator") for _________________________________. (specify purpose) 2. The above collaboration has been approved by the Reserve Bank of India/Government of India, Ministry of Industry, vide its letter No. ______________________dated ____________________ and subsequent amendment(s) vide letter(s) No. (s) __________________________ dated ___________ setting out that a royalty of _________ and ___________net of taxes/subject to taxes is payable to the overseas collaborator on domestic sales (rate) (rate) and actual export proceeds on fulfilment of the condition/s governing each such payment. 3. The above collaboration bears Registration No._______________ accorded by RBI, FITT Section, Mumbai /RBI ____________________________ vide its letter number __________________ dated ______________. 4. A sum of ________________ towards payment of technical know-how fees has already been remitted on ________________ and balance amount of ____________________________remaining to be paid is due on ________________/ no further payment remains to be made on this account. 5. The collaboration agreement is dated _____________________ and the commercial production based on the technology acquired under the above collaboration has commenced on _________________. Consequently, the period of agreement is from _____________ to _______________ and the period for payment of royalty is determined as from _____________________ to _________________ in accordance with the terms and conditions set out for the purpose by RBI/Government vide its letter dated _________________. 6. The following payment(s) has (have) already been made under the above collaboration : Sales Sales on which royalty Amount of royalty on % of during remitted (7) the --------------------------------------------------------------------------------------------- to period Domestic Export Total Domestic Exports Total (4) sales sales (i.e. (i.e. Column-2) Column-3) ---------- -------------- ---------- ------------ ----------------- ------------------- ---------- ----------------- (1) (2) (3) (4) (5) (6) (7) (8) Total A:_____________________________ Total B:___________________________ % of (B) to (A) :_________________________________________________________ % of [(B)+ know-how] to (A) : __________________________________________ fee 7. A gross payment of ______________ net of tax/subject to tax, has now become due to the overseas collaborator towards payment of royalty in respect of orders executed by the Indian Company during the period ____________ to _______________ under the above collaboration. The amount has been calculated strictly in accordance with the terms and conditions stipulated in this regard by the RBI/Government, vide its letter dated _______________ cited above; details whereof are furnished in the Annexure. 8. We have perused the books of accounts, the collaboration agreement, Government's letter of approval, RBI's letter dated ____________ and other relevant records and having fully satisfied ourselves certify as under : (i) the statements made above are true and correct to the best of our knowledge and belief; (ii) the Reserve Bank's/Government's letter of approval and subsequent amendment, if any, form part of the collaboration agreement dated ___________________; (iii) the amount of royalty has been calculated on products manufactured after the conclusion of the collaboration agreement and the quantum of said production is within the capacity approved by the Government of India; (iv) the Indian company has executed legal undertaking/furnished bank guarantee and has fulfilled the export obligation as instructed by DGFT and Ministry of Commerce; (v) M/s.____________________________________________________________ who are sub-contractors have actually manufactured the components detailed below according to and using the designs and drawings supplied by the overseas collaborator to the Indian company under the above collaboration; (vi) the proposed payment does not in any way involve payment of any interest on delayed payment and/or any other payment which is not specifically permitted under RBI/Government's letter of approval dated _________________; (vi) the Indian company has paid income-tax at the rate specified by the Government and deposited with __________________________________________ on ____________. (name of bank and branch) OR a 'No Objection Certificate' /tax clearance certificate issued by ____________________________ vide No. ____________________________ dated ____________ is enclosed, in original; (viii) the Indian company has paid cess under R & D Cess Act, 1986, on the amount of royalty in question; (ix) the Indian company has submitted to Reserve Bank of India, ________, the Return in Form TCD for the year ended 31st December __________. Place: Date: Chartered Accountant SEAL (Signature of the authorised signatory) Name:............... Address: ............. Registration No. .......... Notes : (i) Delete under authentication whatever is not applicable but no item/clause should be omitted from this format of the C rtificate. (ii) Additional information, if any, may be supplied on separate sheet under proper authentication. ANNEXURE Domestic Export Total sales sales I. Actual production and sales II. Net ex-factory sales price of products eligible for royalty out of the above (net-ex-factory value of sales is net of excise duty Rs.___________________) packing forwarding Rs._______________) Sales Tax (Rs._______________________) discount (Rs.________________________) etc. III. (a) Landed cost of imported components including ocean freight, insurance, customs duties, etc. (b) Standard bought-out components used in the manufacture of the product; Total (a) + (b) IV. Net sales on which royalty is payable (II minus III) V. Royalty @ ________% and __________% on above. VI. Tax deductible at source @ _________%. VII. Net remittable amount.
