Kaagazaat

Commission Agent / Sales Agency Agreement

At a glance

Price: Free, always.
Stamp duty: Stamp duty depends on what the paper does and on the Schedule to the Indian Stamp Act, 1899 as applied in Punjab and in Chandigarh.
Registration: Not compulsorily registrable unless it creates or transfers a right in immovable property (section 17, Registration Act, 1908); this paper is not meant to.
Witnesses: Not required by law, but two adult witnesses who are not parties, each writing name, address and ID reference beside the signature, make a later denial harder.

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Also called

sales agent agreement
commission agency agreement
sales representative contract
marketing agent agreement
arhtiya agreement
indenting agent
agency for sale of goods
commission basis selling

When you need it

A manufacturer, trader or service business in Punjab or Chandigarh appoints an agent to find customers and take orders for its goods or services for a commission on the sales. The agent does not buy the goods or hold stock: the sale is between the principal and the customer, and the agent is paid only when the principal's sale is made and money comes in.

The agreement fixes the products and the area, whether the agent is the only one there, the commission rate and when it is earned and paid, what the agent may and may not promise to customers, the statements and records the principal owes, and how either side can end it. It is written so that the agent is an independent agent, not an employee, and cannot sign contracts for the principal unless the principal says so. Not for a person who buys the goods and resells them for their own profit (use the Distributor or Dealership Agreement). Not for a dealer in property (use the broker agreements). Not for an employee on commission (use an employment letter).

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You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

Stamp duty depends on what the paper does and on the Schedule to the Indian Stamp Act, 1899 as applied in Punjab and in Chandigarh. An agreement of this kind is usually charged as an agreement not otherwise provided for, at a modest fixed figure, but the figure is not stated here: confirm it on the official e-stamping portal or with the Sub-Registrar before buying the stamp. If a clause makes the paper in substance something else (a transfer of property, a lease, a power of attorney, a guarantee), it is charged as that. An under-stamped paper cannot be used as evidence until the deficit and penalty are paid.

Registration

Not compulsorily registrable unless it creates or transfers a right in immovable property (section 17, Registration Act, 1908); this paper is not meant to. Registration is optional if the parties want it.

Notarisation

Not required by law, and not a substitute for stamping. A notary only records that the signatories appeared and signed, which makes it harder to deny a signature later. Carry original photo ID.

Witnesses

Not required by law, but two adult witnesses who are not parties, each writing name, address and ID reference beside the signature, make a later denial harder.

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COMMISSION AGENT / SALES AGENCY AGREEMENT

This Agreement is made at Chandigarh on 2 April 2026.

BETWEEN

Bedi Agro Tools Private Limited, of Plot 40, Focal Point, Ludhiana 141010, acting through Karanveer Bedi, Director (the "Principal");

AND

Jagjit Singh Grewal, of House No. 12, Model Town, Patiala 147001, PAN AKJPI4432R, GSTIN 03AKJPI4432R1Z9 (the "Agent").

1. APPOINTMENT

1.1 The Principal appoints the Agent, from 1 April 2026, to find customers and obtain orders for the following goods or services (the "Products"): The Principal's range of hand tools and sprayers, as listed in its current price list.

1.2 The Agent shall work in this area: The districts of Patiala, Sangrur and Fatehgarh Sahib in Punjab. The Agent is the only agent for these goods in the area, and the Principal shall not appoint another agent there during this Agreement.

1.3 The Agent is an independent agent, not an employee or partner of the Principal, chooses how to carry out the work and bears its own costs, including travel and staff, unless the Principal agrees in writing to meet a particular cost. The Agent is not entitled to salary, provident fund, ESI, gratuity or other employee benefit.

2. AUTHORITY OF THE AGENT

2.1 The Agent shall promote the Products, pass orders to the Principal, and give customers only the prices, terms, specifications and warranties in the Principal's current price list and written terms. The Agent has no authority to sign any contract for the Principal, to change a price or term, to collect money for the Principal, or to give any promise, discount or credit the Principal has not approved in writing.

2.2 Each order is an offer to the Principal. The Principal may accept or refuse any order, in whole or in part, for any good reason such as stock, credit risk or price, and shall tell the Agent of its decision within a reasonable time. The sale is a contract between the Principal and the customer, and the Principal alone invoices, delivers and collects payment.

2.3 The Agent shall act honestly, put the Principal's interest first in the work, tell the Principal promptly of any customer complaint, and not take on, during this Agreement, an agency for goods that directly compete with the Products in the area, without the Principal's written consent.

3. COMMISSION

3.1 The Principal shall pay the Agent commission of 3 per cent of the sale value, before GST, on each sale to a customer found by the Agent, once the Principal has been paid in full for that sale.

3.2 By the 10th day of each month the Principal shall send the Agent a written statement of the sales made and money received in the previous month for the Agent's customers, and pay the commission earned. The Agent may, on reasonable notice, inspect the Principal's records of those sales. If a sale is cancelled or goods are returned and the price refunded, the commission on it is reversed against the next payment.

Questions about this document

Does the Commission Agent / Sales Agency Agreement need stamp paper or stamp duty in Punjab and Chandigarh?

Stamp duty depends on what the paper does and on the Schedule to the Indian Stamp Act, 1899 as applied in Punjab and in Chandigarh.

See the full position on stamp duty, registration and witnesses

Does the Commission Agent / Sales Agency Agreement need registration in Punjab and Chandigarh?

Not compulsorily registrable unless it creates or transfers a right in immovable property (section 17, Registration Act, 1908); this paper is not meant to.

See the full position on stamp duty, registration and witnesses

What does the Commission Agent / Sales Agency Agreement cost on Kaagazaat?

Free, always.

Does the Commission Agent / Sales Agency Agreement need witnesses?

Not required by law, but two adult witnesses who are not parties, each writing name, address and ID reference beside the signature, make a later denial harder.

See the full position on stamp duty, registration and witnesses

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