Skynex Ltd., incorporated in India in 2024, is engaged in the manufacture of lithium batteries for two-wheeler. The company markets its products…

(i) As per Schedule III to the Foreign Exchange Management (Current Account Transactions) Rules, 2000, the following remittances by persons other than individuals shall require prior approval of the Reserve Bank of India. Commission per transaction to agents abroad for sale of residential flats or commercial plots in India exceeding USD 25,000 or five percent of the inward remittance whichever is more. If any remittance is made for the transactions listed in Schedule II and Schedule III from Exchange Earners' Foreign Currency (EEFC) account, then also no approval is required. However, in case of the above-mentioned commission if exceeding the prescribed limits, approval is required even if payment is from EEFC account. The maximum amount that can be paid without RBI approval is USD 47,500 (5% of USD 9,50,000) or USD 25,000 whichever is higher. Since, the amount of commission is USD 50,000, which is more than the limit of USD 47,500, approval is required.