Dear Friends,
One of the Clauses in the Tender Document reg. Hiring of two personnel for House Keeping Services that Service Tax Will be reimbursed. All tenderers quoted ST @10.3%. with ST Regn. Certificate. But one Firm did not quote ST and also not submitted any proof of ST Regn. and thus become Lowest bidder. Whether such quotation can be accepted as the Firm failed to quote ST which is a Statutory liability? Whether Principal Employer can escape from the liability of ST?
Urgent clarification is solicited from the members.
With warm regards and Deewali Greetings
kadalirao
From India, Jaipur
4One of the Clauses in the Tender Document reg. Hiring of two personnel for House Keeping Services that Service Tax Will be reimbursed. All tenderers quoted ST @10.3%. with ST Regn. Certificate. But one Firm did not quote ST and also not submitted any proof of ST Regn. and thus become Lowest bidder. Whether such quotation can be accepted as the Firm failed to quote ST which is a Statutory liability? Whether Principal Employer can escape from the liability of ST?
Urgent clarification is solicited from the members.
With warm regards and Deewali Greetings
kadalirao
From India, Jaipur
Dear kadali ra0
How were the Tenders evaluated ??
Do you have a member from Finance in the committee to evaluate tenders ?? (I hope the Tenders were not processed by a single person).
Do you not think that there is a fundamental error in evaluating, which could have been prevented if the Comparative Statement made properly ??
There is a well known phrase and concept of "level playing field", which was not been taken care of. If tenders are evaluated in this shoddy manner, any bidder can be made highest or lowest, thus rendering the process of comparison meaningless.
Hope you find the answer during the process of self-examination.
Warm regards.
From India, Delhi
How were the Tenders evaluated ??
Do you have a member from Finance in the committee to evaluate tenders ?? (I hope the Tenders were not processed by a single person).
Do you not think that there is a fundamental error in evaluating, which could have been prevented if the Comparative Statement made properly ??
There is a well known phrase and concept of "level playing field", which was not been taken care of. If tenders are evaluated in this shoddy manner, any bidder can be made highest or lowest, thus rendering the process of comparison meaningless.
Hope you find the answer during the process of self-examination.
Warm regards.
From India, Delhi
Thank you Mr. Hansdah,
In every stage of tenderiing process, Finance personnel is involved and committee will always consists 3 or more persons. As per the tender clause, ST will be reimbursed. The element of ST, I proposed, to add in the CST against the Firm defaulting in quoting the same since it is the statutory liability on the Principal Employer in case of default of Service Provider to pay ST and also not having ST Regn. One of the Committee members is of the opinion that ST not to be included in CST as it is not quoted by the Firm which becomes the Lowest and thus Financial implication of the Organisation becomes less. Please suggest.
Further, I would like to know for my knowledge concept of "level playing field'.
With warm regards
kadalirao
From India, Jaipur
In every stage of tenderiing process, Finance personnel is involved and committee will always consists 3 or more persons. As per the tender clause, ST will be reimbursed. The element of ST, I proposed, to add in the CST against the Firm defaulting in quoting the same since it is the statutory liability on the Principal Employer in case of default of Service Provider to pay ST and also not having ST Regn. One of the Committee members is of the opinion that ST not to be included in CST as it is not quoted by the Firm which becomes the Lowest and thus Financial implication of the Organisation becomes less. Please suggest.
Further, I would like to know for my knowledge concept of "level playing field'.
With warm regards
kadalirao
From India, Jaipur
Dear Sir,
Kindly ask the person who has not quoted Service tax for his registration details.
There is a possibility that the concerned person is ignorant of the law or maybe they do not fall within the purview of Service tax on account of turnover being lesser than the threshold limit.
In any case, the tenders should be evaluated on the bid for fees / charges and not the taxes that are statutory liability. Non compliance of law or avoidance of taxes entails great liability in terms of cost, time as well as goodwill for the person.
I hope this would help you.
Thanks,
Kind Regards,
Avika Kapoor
Assistant General Manager - Business Development
From India, New Delhi
Kindly ask the person who has not quoted Service tax for his registration details.
There is a possibility that the concerned person is ignorant of the law or maybe they do not fall within the purview of Service tax on account of turnover being lesser than the threshold limit.
In any case, the tenders should be evaluated on the bid for fees / charges and not the taxes that are statutory liability. Non compliance of law or avoidance of taxes entails great liability in terms of cost, time as well as goodwill for the person.
I hope this would help you.
Thanks,
Kind Regards,
Avika Kapoor
Assistant General Manager - Business Development
From India, New Delhi
Dear Avika ji
Thank you for for the suggestion. What happens if the Principal Employer comes under the perview of ST and hiring services from Service Provider not having ST Regn, may be because of not falling within the perview of ST limit of Turn over.
With Warm regards,
kadali rao
From India, Jaipur
Thank you for for the suggestion. What happens if the Principal Employer comes under the perview of ST and hiring services from Service Provider not having ST Regn, may be because of not falling within the perview of ST limit of Turn over.
With Warm regards,
kadali rao
From India, Jaipur
Dear Kadali Rao,
Up to Rs. 10 Lakhs Income Service Tax is exempted. Might be the person/ organisations income is below the Rs.10 Lakhs. If so then there will be no problem.
If person is charging Service Tax from and Not remitting to the government then it is offence from his part, i dont think employer is responsible for the same. If any one charging service tax from your company, you should ask there service tax number.
Your second query evaluation part, any way service tax you can take credit, so there is not considered as a extra cost to the company. Check without service charges whos quotations/ bid is less and also consider there service too.
Regards
Praveen
Career Growth Consultants
(Providing Manpower Solutions)
Bangalore
From India, Bangalore
Up to Rs. 10 Lakhs Income Service Tax is exempted. Might be the person/ organisations income is below the Rs.10 Lakhs. If so then there will be no problem.
If person is charging Service Tax from and Not remitting to the government then it is offence from his part, i dont think employer is responsible for the same. If any one charging service tax from your company, you should ask there service tax number.
Your second query evaluation part, any way service tax you can take credit, so there is not considered as a extra cost to the company. Check without service charges whos quotations/ bid is less and also consider there service too.
Regards
Praveen
Career Growth Consultants
(Providing Manpower Solutions)
Bangalore
From India, Bangalore
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Service Tax.pdf