Most revenue sharing disputes are about the definition of revenue, not the percentage. Our new guide explains deductions, billed versus collected revenue, minimum guarantees, audit rights and the sectors where fee sharing is barred.
Restaurants sharing a kitchen with a delivery brand, developers building apps for a share of subscriptions, landlords charging a percentage of turnover — revenue sharing is everywhere in Indian business. Our new revenue sharing agreement guide explains how to write one that works.
The definition is the deal
The most valuable clause in a revenue sharing agreement is the definition of revenue. The guide recommends a closed list of permitted deductions — GST, refunds, chargebacks, platform commissions, payment charges — each backed by a document, so that the monthly figure can be calculated mechanically rather than argued.
Other points the guide covers
- Whether revenue is counted when billed, when collected or when earned, and the true-up rule for later refunds.
- Bundles, related-party sales and channel shifting, the three ways revenue leaks.
- Flat, tiered and hybrid percentages, minimum guarantees, advances and caps.
- Statements, data access and audit rights.
- GST and TDS questions to take to your chartered accountant.
- When a revenue share risks being treated as a partnership.
Where revenue sharing is not allowed
The guide also explains that some professions cannot share fees. Doctors are prohibited from paying or receiving commissions for referring patients, and the Bar Council of India’s rules do not allow advocates to share professional fees with anyone who is not an advocate. That is why Legal Space Services never takes a share of any advocate’s fee.
News on this page is general information, not legal advice. For your own matter, talk to our team, or find an advocate for court work — the advocate’s fee is engaged and paid by you directly.