Professional Documents
Culture Documents
124)
Illustration
Essentials
There must be a loss.
b) All the costs of the suit that he may have had to pay to
the third party provided he acted as a man of ordinary
prudence and he did not act in contravention of the
directions of the indemnifier or if he had acted under the
authority of the indemnifier to contest such a suit.
c) All the sums that he may have paid under the terms of
any compromise of any such suit provided such
compromise is not contrary to the indemnifier’s orders and
was a prudent one or if he acted under authority of the
indemnifier to compromise the suit.
Rights of Indemnifier
1.The contract act is silent about the rights of indemnifier.
2.Rights under doctrine of Subrogation.
3.To sue against third party after indemnifying the
indemnity holder.
4.Not to compensate for losses not covered under
Contract of Indemnity.
As per section 8(1) (b) of CST Act 1956 sales tax liability
on inter-state sales is at the rate of 2 percent or ‘rate of tax
for sale within State’ whichever is lower, provided such
sale is affected to a registered dealer and goods are
covered in the registration certificate of the purchasing
dealer. Otherwise the rate of tax would be the rate which
is applicable on the goods sold within that State.