Shivoy Ceramics Limited, an Indian company, holds a commercial plot in Chennai which it intends to sell. CY Seller, a real estate broker with its…

Shivoy Ceramics Limited, an Indian company, holds a commercial plot in Chennai which it intends to sell. CY Seller, a real estate broker with its Head Office in the USA, has been appointed by Shivoy Ceramics Limited to find some suitable buyers for the said commercial plot in Chennai which is situated at a prime location. CY Seller identifies Glory Estate Inc., based out of USA, as the potential buyer. It is to be noted that Glory Estate Inc. is controlled from India and hence, is a 'Person Resident in India' under the applicable provisions of Foreign Exchange Management Act, 1999. A deal is finalised and Glory Estate Inc. agrees to purchase the commercial plot for USD 600,000 (assuming 1 USD = 90). According to the agreement, Shivoy Ceramics Limited is required to pay commission @ 7% of the sale proceeds to CY Seller for arranging the sale of commercial plot to Glory Estate Inc. and commission is to remitted in USD to the Head Office of CY Seller located in USA. Considering the relevant provisions of Foreign Exchange Management Act, 1999, which statement out of the four given below is correct (ignoring TDS implications arising under the Income-tax Act, 1961):