Page |1

Annexure V - TAX INSTRUCTIONS TO FILL PRICE BID FOR INDIAN

BIDDERS
INDEX

A. APPLICABILITY OF TAXES ON SUPPLY OF GOODS

A.1

Customs Duty: Applicable only when Goods are

imported into India

Page | 3

A.2

Excise Duty: Applicable only when Goods are

manufactured in India

Page | 4

A.3

VAT/CST Applicability

Page | 4

A.4

Octroi / Entry tax : Applicable on notified goods only

Page | 5

TAX DEDUCTIONS (TDS / WHT)

Page | 5

A.5

B. APPLICABILITY OF TAXES ON SERVICES

B.1

Service Tax

Page | 7

B.2

TAX DEDUCTIONS (TDS/WHT)

Page | 7

C. APPLICABILITY OF TAXES UNDER COMPOSITE (Goods & Services) CIVIL CONTRACT

C.1

Applicable Taxes

Page | 9

C.2
Tax Deductions (TDS/WHT/WCT)
C.1.1 TDS

Page | 10

Page |2
C.1.2 Works Contract Tax deduction (WCT).

Page | 10

A. APPLICABILITY OF TAX ON
SUPPLY OF GOODS

Page |3

A.1

Customs Duty : Applicable only when Goods are imported into India
PARTICULARS

INDIAN BIDDERS
Delivery terms: AT SITE

Delivery Terms Preferred

Customs duty will be NIL on the Basis of Essentiality Certificate

(EC)
(Please check with Company whether EC could be made
available on such kind of goods or not)

Bidder
Responsibility for getting the EC

Responsibility for Customs

Clearance
*(Refer Note a) below)
Goods for which Benefits
available

(All associated cost and risks for availing the applicable

exemptions and/or benefits will be in Bidders account).

Bidder

List 13 goods through EC issued by DG of HC in the

MoPNG.

(List 12 (now revised to List 13) .

Please refer attached document

Page |4

PARTICULARS

INDIAN BIDDERS

List 13

*Note:
(a) As the responsibility is on Bidder to obtain EC, Company will provide only reasonable
assistance for EC, rest of the process needs to be understood and followed by the successful
bidder to avail such exemption/benefits. Bidder should understand all related procedures to
avail such exemptions and benefits at its cost and expenses.
(b) Customs Duty related to non-List 13 goods shall be included in the Basic Price itself.
(c) The customs duty benefits are available in accordance with notification no. 12/2012-Customs
dated 17th March 2012 and any latest revisions (exclusively on matters related to petroleum
operations) issued by the Government of India from time to time (the Notifications).

A.2

Excise Duty : Applicable only when Goods are manufactured in India

Particulars

INDIAN BIDDERS

Current Rate

Standard Rate12.36%

Responsibility to Pay to Tax

Authorities in India

Bidder (Contractor)
PAC issuance / Excise Benefits

Bid issued under ICB

(International Competitive
Bidding)

Excise benefits are available; PAC will be issued. Please refer

detailed understanding attached below for such benefits.

Page |5

Excise Duty
Benefits.doc

Bid not issued under ICB

Excise Benefits are not available, PAC will not be issued.

A.3 Applicability of VAT/CST

PARTICULARS

DELIVERY TERMS

REQUIREMENTS

- Applicable VAT rate will be as per

the respective states.

VAT
(if supply is made within same
State)

DELIVERY AT SITE

- Input tax credit may be available

to bidder against the Goods

purchased from the registered
vendors within same State.

- Applicable rate will be the rate of

supplying state.

CST
(if supply is made from different
State where goods need to be
delivered)

- Reduced rate @ 2% against

DELIVERY AT SITE

Form C.

- NIL under in transit sales route/

sale against E1/E2 forms, if,

goods has to be procured from
the subcontractors and delivered
without taking the delivery.

- VAT/CST shall not be applicable

Imported goods

DELIVERY AT SITE

on the goods imported into India

under high sea sale basis.

- Company can enter into HSS for

import of the goods.

Page |6

PARTICULARS

DELIVERY TERMS

REQUIREMENTS

Note :
1. The availability of C form for particular class of goods must be checked from the
Company representative before submission of Bids.
2. Company shall not issue any C form / Road permit forms for goods meant for delivery at
corporate office, Gurgaon.

A.4

OCTROI / ENTRY TAX

Applicable on notified goods when goods are brought to local area within a state in India
(a) OCTROI (if applicable) shall be considered in the Basic Price itself with no further bifurcation.
(b) Company will be responsible for Entry Tax / OCTROI, if any, on the goods sold to Company
against Form C and/or where Company agrees to issue the way bills/road permit.
(c) Apart from the goods as mentioned in para (b) above, Entry Tax liability shall be in Bidders
account only. Bidders are advised to consider the classification of goods under Entry Tax as
only notified items may be subject to Entry Tax and not all items. Such Entry Tax (if
applicable) shall be considered in the Basic Price itself with no further bifurcation.

A.5 Tax Deductions (TDS/WHT)

TDS is not applicable in case of supplies made by Domestic Suppliers (successful bidder)

Page |7

B. APPLICABILITY OF TAXES ON
SERVICES

Page |8

B.1 Service Tax

Particulars

INDIAN BIDDERS
Standard 12.36%

Current Rate

(Lower/abated rate is applicable for various services

Refer List -A).

Responsibility to Pay to Tax

Department

Service Provider/ Contractor and in some cases by

Company ( Refer List B)

(a) For list of services where abatement is available please refer List A.
(b) For list of services where Company is also responsible to pay service tax directly to Tax
Authorities is attached as List B.
(c) Please refer following document for List-A & B.

List A and B.doc

(d) Services Tax paid to the sub-vendors for the input services may be available for set-off
against the output Service tax payable by the Contractor.
(e) The price bid submitted by the bidder should specify the break-up of applicable Output
Service Tax (which Bidder wants to charge to Company) after consideration of set
off/abatement, if any.

B.2 Tax Deductions (TDS/WHT)

B.2.1 TDS deduction in case of Indian Bidders
Applicability

TDS shall be deducted as per the applicable rates under Income Tax Act.

PAN is mandatory in case of Indian Bidders.

Page |9

If PAN is not provided, TDS will be deducted higher of following:

20%
TDS rate applicable.

The TDS/Withholding tax so deducted will be in Bidders account only.

C. APPLICABILITY OF TAXES UNDER

COMPOSITE CIVIL CONTRACT

This understanding is only for CIVIL Contracts for building structures etc. and not valid for
other EPC Contracts.
For other EPC Contracts, such as construction of entire facility with equipments etc and/or
construction and installation of equipments at site, a separate tax understanding will be

P a g e | 10
available with the ITT itself which will include available benefits under Excise, Customs,
VAT/CST and Service Tax. If otherwise required, the same can be obtained on a separate
request.

C.1 Applicable Taxes

Particulars

INDIAN BIDDERS
Standard 12.36%

Current Rate of Service Tax

Responsibility to Pay to Tax

Department

(Lower/abated rate is applicable for various Composite services)

Service Provider/ Contractor

- CST / VAT shall be applicable as per the A.3.1 clause.

- No C form will be issued to Civil Contracts. For other composite
CST / VAT

contracts please contact with Company representative.

- Bidder may choose to opt Composition Schemes available under

respective VAT laws to reduce the Tax Cost.

P a g e | 11

(a) For list of services where abatement is available please refer List-A. Please refer following
document for List-A.

List A.doc

(b) Services Tax paid to the sub-vendors for the input services may be available for set-off
against the output Service tax payable by the Contractor.
(c) The price bid submitted by the bidder should specify the Beak up of applicable Output
Service Tax (which Bidder wants to charge to Company) after consideration of set
off/abatement, if any.

C.2 Tax Deductions (TDS/WHT)

C.2.1 TDS deduction in case of Indian Bidders
Details

Applicability

TDS shall be deducted as per the applicable rates under Income Tax Act.

PAN is mandatory in case of Indian Bidders.

If PAN is not provided, TDS will be deducted higher of following:

20%
TDS rate applicable.

The TDS/Withholding tax so deducted will be in Bidders account only.

P a g e | 12

C.2.2 Works Contract Tax deduction (WCT).

Details
Applicability

INDIAN BIDDERS
On Composite / Civil Contracts.

- Rajasthan 3%

(If contract value > Rs. 5,00,000)

Rate of deduction

- Gujarat 2%

(If contract value > Rs. 1,00,00,000)

- Andhra Pradesh 4%

Company will issue appropriate WCT certificates to bidder for tax deducted under VAT Act.
Bidders may avail credit/refund. (as the case may be) against their tax liability at their cost
and expenses. The WCT so deducted shall be in Bidders account.

If Bidder wishes to have deductions on lower rate or otherwise, than successful Bidder need
to submit the appropriate certificate to be taken from the competent Vat Authority
authorizing Company to deduct WCT at the prescribed lower rate.