Agency Agreement Format
Appoint an agent to sell, buy or represent your business in a territory for a commission, with clear limits on the agent's authority.
What it is
An agent is a person employed to do any act for another, or to represent another in dealings with third persons (Section 182 of the Indian Contract Act, 1872). A sales or commission agent finds customers and concludes or facilitates sales for the principal, who remains the owner of the goods. The agreement defines what the agent may and may not do, the territory, products, whether the appointment is exclusive, the commission and how it is earned, and termination.
When it is used
- Appointing commission agents or sales representatives in a region.
- Procurement agents buying on behalf of a business.
- A foreign company appointing an Indian representative, or the reverse.
What the template covers
- Principal and agent details, PAN and GSTIN
- Type of agency and limits of authority
- Territory, products and exclusivity
- Commission rate and basis
- TDS on commission
- Term, notice for termination and jurisdiction
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Agreement
Agreement Date; Place
Principal
Principal Name; Address; GSTIN
Agent
Agent Name; Address; Agent PAN; Agent GSTIN (if registered)
Scope
Type of Agency; Territory; Products / Services Covered; Exclusivity
Commission
Commission Rate (%); Commission Basis; TDS on Commission
Term
Initial Term (months); Notice for Termination (days); Governing Jurisdiction
Stamp duty, registration and filing
The principal is bound by acts of the agent within the agent's authority, so limits should be stated clearly. The principal deducts TDS on commission (Section 194H up to 31 March 2026 and Section 393 of the Income-tax Act, 2025 from 1 April 2026). GST applies to the agent's commission, and an agent who supplies goods on behalf of a principal may need GST registration whatever its turnover. Under Sections 205 and 206 of the Contract Act, compensation or reasonable notice is due where an agency is ended without sufficient cause.
Generate the Agency Agreement
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows? Contact SKAG and Associates
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Frequently asked questions
Is GST registration compulsory for an agent?
Persons who make taxable supplies on behalf of other taxable persons, as agents, must register under GST regardless of turnover. An agent who only earns commission for introducing buyers follows the normal threshold.
What is the TDS rate on commission?
Check the current rate and threshold for the year in the TDS rate chart; the section changed from 194H to Section 393 of the Income-tax Act, 2025 from 1 April 2026.
How is an agent different from a distributor?
An agent acts on behalf of the principal without owning the goods; a distributor buys and resells in its own name.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.