Audit of royalty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2012 how to audit and what is the audit programme for the royalty paid to Non resident co?
and also amt paid to NR CO for the stall installation at the Zarmni?

what are thye act provision to be fulfilled?
how & what way the DTAA is palying the inmportant role?

Nachiket Vasantgadkar

Nachiket Vasantgadkar (Expert)
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13 August 2012 Check forllowing documents & regulations:
1. Royalty Agreement
2. Currency for payment
3. TDS as per DTAA & IT Provisions (PAN)
4. R&D Cess
5. Service tax (associated company prov)
6. TDS deduction & payment (as per booking rate)
7. FEMA Provisions (payment in foreign currency)
8. Check for exemption from registration of royalty agreement with RBI (this is required for payment in foreign currency)
9. Also check the transfer pricing applicability, for your knowledge, as this is not covered under royalty payment