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February 2010

Liberalization of Foreign Technology Agreement Policy

By Pinky Shah
Sonalee Godbole
Gaurang Gandhi
Tarun Ghia
Nimesh Dedhia
Vijay Kewalramani
Chartered Accountants

Reading Time 1 mins

New Page 1

Part C:
FEMA

Given below are the highlights of certain RBI
circulars, press notes and notifications

Press Note No. 8 (2009 Series), dated December 16,
2009

35 Liberalization of Foreign Technology Agreement
Policy

This press note permits, with immediate effect,
payments for royalty, lump sum fee for transfer of technology and payments for
use of trademark/brand name under the automatic route. Although approval of the
Government of India will be required for making payments in respect of the same,
the payments will be subject to the provisions of the Foreign Exchange
Management (Current Account Transactions) Rules, 2000 as amended from time to
time. A suitable reporting mechanism is being separately notified by the
Government of India.

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