8/19/2019 The Draft PO 4020002151 Dated 20

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Reference to the draft PO 4020002151 dated 20.03.2014 placed at 108 to 104 CR side.

On going through it, it has been found that financial implication of Rs.6750-00 has

 been arised, if the proposed PO is amended, since the original PO which was placed in

favour of M/s Uniflair India pvt. Ltd., contains Service Tax applicable was on 100%

contract value and there was no VAT applicable on it.

In the present proposed amendment in the PO the new name changed Vendor M/s

Schneider Electric IT business India Pvt. Ltd has asked 2 taxes, namely

1. Service Tax @14.5% on 70% contract value and

2. VAT @12.5% on 80% contract value which may increases additional tax burden on

the company i.e. on PPCL. Details are as under;

PO Value for one year = 223100/2 = 111550-00 with

1.Service Tax@12.36% for 7.5 months (01.04.2015 to14.11.2015)

=111550*7.5/12*12.36% = Rs.8617-00

2.Service Tax @14.50% for 4.5 months (15.11.2015 to 31.03.2016)

=111550*4.5/12*14.50% = Rs.6066-00

 Total outgo A = 8617-00 + 6066-00 = 14,883-00

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