SKumar (Manager) (385 Points)
29 November 2019As per written agreement between Principal & agent, agent may raise Commission Invoice only 60 days after Principal receive their full payment.
Agreement stipulates that the 60 day window is for any product claims/ refunds /adjustments towards the "main supply".
Is the date of service completion to be taken as date the Principal receives full payment or 60 days after Principal receives payment (as per agreement)?
Vineet Gupta
(17 Points)
Replied 30 November 2019
SKumar
(Manager)
(385 Points)
Replied 30 November 2019
Thank you for your reply.
The Main supply will be an export of goods from Principal (outside India) to a Customer in India who is prospected by the Agent.
The Commission for Intermediary service is in relation to that main supply.
The Principal (service recipient) has specified Agent's scope of activity in the agreement as:
a)prospecting for customers from India
b)developing prices in consultation with Principal for such prospects
c)negotiation and obtaining orders
d)ensuring payment
e)assist in compliances
f)assist in insurance claims if any
g)documentation guidance
h)product related claims / defects / refunds / adjustments claimed by buyer
So Agent's service is obviously not complete till he ensures full payment is made by Indian Customer to his Principal.
But going further Principal & agent have mutually agreed to a 60 day window after Principal receives payment keeping in mind point (h) above, so completion of service is being based on that date.
Whether the claim for adjustment arises or not, the Principal has contractually defined Agent's service completion as 60 days after Principal gets payment for the Main supply.
Vineet Gupta
(17 Points)
Replied 30 November 2019
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