Indemnity Clause
2 years ago
Hello , my father has been working as service provider for a company. Due to some unforeseen reasons he is not able to complete the work for 1 such Purchase Order issued on his name. He was given an advance and as per the work done it exceeds more than the advance amount. There is no documentation around any legal actions or penalties but there is an indemnity clause which is as:
Any liability/loss of eligible input tax credit for non-payment/non-filing of statutory returns by Vendor and applicable interest/penalties be duly indemnified by Vendor.
Does this clause revolves around taxes and gst returns or is it for applicable if the assigned task is not completed as well?
According to the provision you indicated, your father is not liable to pay money for the appointed task since he is indemnified against the loss. However, unless a provision of force majeure is applied, if your father fails to finish work assigned by the company, he may be held liable for the firm's loss.
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If any notice received then only you father needs to react.
Ayantika Mondal @ Prime Legal
Responded 2 years ago
As per the clause mentioned by you, it doesn't make your father to liable to pay money for the assigned task. But if your father didn't complete work assigned by the company then it might be make him liable for the loss to the company unless clause of force majeure is applied.
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Vaidehi Samant
Responded 2 years ago
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