Annual Fee explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Registration under the Act is kept alive by an annual fee payable by every registered breeder, agent and licensee. Section 35 lets the Authority impose the fee on the basis of benefit or royalty, requires a notice before forfeiture, and treats arrears as arrears of land revenue.
Provisions as amended up to the Tribunals Reforms Act, 2021 (in force 4 April 2021); no later amendment as of 3 October 2026. Later notifications should be checked on plantauthority.gov.in.
The Authority, with the prior approval of the Central Government and by Gazette notification, may impose an annual fee on every registered breeder, agent and licensee, "determined on the basis of benefit or royalty gained" (s.35(1)). If the fee is not deposited for two consecutive years, the Authority issues a notice, and if the notice is not complied with it declares all protection forfeited (s.35(2)). Arrears are recoverable as arrears of land revenue (s.35(3)). The fees go to the National Gene Fund (s.45(1)(b)).
Section 35(1): the power to impose the annual fee
"The Authority may, with the prior approval of the Central Government, by notification in the Official Gazette, impose a fees to be paid annually, by every breeder of a variety, agent and licensee thereof registered under this Act determined on the basis of benefit or royalty gained by such breeder, agent or licensee, as the case may be, in respect of the variety, for the retention of their registration under this Act."
Three features:
- It applies to breeders, agents and licensees, each as registered.
- It is determined on the basis of benefit or royalty gained, which is why the notified rates combine a fixed sum with percentages.
- It is for retention of registration. It is separate from the renewal fee that extends the term under section 24(6).
The notified annual fee
The Act does not state the fee. It is notified by the Authority: S.O. 2182(E) dated 26 August 2009, as amended by S.O. 1598(E) dated 15 June 2015. These notifications are quoted as notified; check plantauthority.gov.in for any later notification.
| Category | Annual fee as notified |
|---|---|
| Variety of the genera and species other than extant varieties and farmers' varieties (s.14(a)) | Rs. 2000, plus 0.2 per cent of the sales value of the seeds of the registered variety during the previous year, plus 1 per cent of royalty, if any, received during the previous year from the sale proceeds of seeds of the registered variety |
| Extant variety notified under section 5 of the Seeds Act, 1966 | Rs. 2000 |
| Other extant varieties | Rs. 2000, plus 0.1 per cent of the sales value of the seeds during the previous year, plus 0.5 per cent of the royalty, if any, received during the previous year |
| Farmers' varieties (inserted by S.O. 1598(E) of 15 June 2015) | Rs. 10/- |
For the purpose of determining the fee, the notification says that the declaration given by the registered breeder, agent or licensee on the sales value of the seed during the previous year and the royalty received, "verified by the Authority", is taken into consideration.
A mismatch to watch: rule 54 of the Rules says the annual fee is payable "at such rate as specified for the purpose in column (3) of the Second Schedule", but the Second Schedule, as substituted in 2015, has no annual-fee entry. The annual fee is therefore found in the S.O. notifications above, not in the Schedule. See rule 54 and the following rules and the Second Schedule.
An invented example: Sahyadri Agro Seeds, a registered breeder of a new vegetable variety, must give the Authority a declaration of its previous year's seed sales value and royalty received. It pays the fixed amount plus the percentages as notified. The Authority verifies the declaration. It does not compute anything in advance; each year's fee depends on the previous year's declaration.
If you hold several certificates and need to track what each owes and when, an IP portfolio management review can build a schedule.
Section 35(2): forfeiture after two consecutive years' default
"If any breeder, agent or licensee fails to deposit the fees referred to in sub-section (1) imposed upon him under that sub-section in the prescribed manner up to two consecutive years, the Authority shall issue notice to such breeder, agent or licensee and on service of such notice if he fails to comply with the direction in the notice, the Authority shall declare all the protection admissible under registration certificate issued to such breeder or agent or licensee forfeited."
The path is staged:
- Failure to deposit the fee for two consecutive years.
- A notice from the Authority. The Act requires it ("shall issue notice").
- Failure to comply with the direction in the notice.
- A declaration that all protection admissible under the certificate is forfeited.
The words "shall declare" show that forfeiture follows once these conditions are met. Notice is the safeguard; a breeder, agent or licensee who receives one should respond within the time it sets. The Act does not say what period the notice must allow.
Section 35(3): recovery as land revenue
"The arrears of fees imposed under sub-section (1) shall be deemed to be arrears of land revenue and shall be recoverable accordingly." This is the same mechanism used in sections 26(7) and 41(5).
Where the money goes
Section 45(1)(b) credits to the National Gene Fund "the annual fees payable to the Authority by way of royalty under sub-section (1) of section 35". See sections 45 and 46.
Forfeiture and revocation compared
Forfeiture under section 35 is automatic on default after notice and covers all protection under the certificate. Revocation under section 34 needs an application by an interested person on a listed ground and a hearing. See sections 33 and 34.
Need help tracking annual fees?
Missing two years' fees can cost you the registration. If you manage several certificates, ask about IP portfolio management so that each fee and declaration has an owner and a date.
Key takeaways
- The annual fee is imposed by Authority notification with the Central Government's prior approval.
- It applies to registered breeders, agents and licensees and is based on benefit or royalty gained.
- The rates are in S.O. 2182(E) of 2009 as amended by S.O. 1598(E) of 2015, not in the Second Schedule.
- Two consecutive years' default, a notice and non-compliance lead to forfeiture of all protection.
- Arrears are recoverable as arrears of land revenue.
Read next
- Section 24: certificate and term
- Sections 45-46: the National Gene Fund
- Rules 54-59: annual fee, cancellation and rectification
- Second Schedule: fees
Disclaimer: Based on the Protection of Plant Varieties and Farmers' Rights Act, 2001 as amended up to the Tribunals Reforms Act, 2021, the PPV&FR Rules, 2003 as amended up to G.S.R. 803(E) of 16 November 2021, and the regulations, rules and scheme named in the article, as published by the PPV&FR Authority and consulted on 3 October 2026. Later notifications should be checked on plantauthority.gov.in. This article is general information, not legal advice; check the official text before acting.