In order to bring
greater transparency to the whole procurement process and realising
that the presence of an Authorised Representatives/Agent would
improve the delivery of services and follow up post contractual
obligations, the Ministry of Defence have, on November 02, 2001,
issued Supplementary Instructions on the appointment of Indian
Authorised Representatives/Agents of foreign suppliers. The
Authorised Representatives would make available information
of latest technologies, assist during trials and help in post
contractual servicing.
The salient features
of these instructions are :-
- All foreign suppliers who wish
to appoint Indian Authorised Representatives/Agent would register
them with the Ministry of Defence.
- The Authorised Representative/Agent
could be an individual, a partnership, an association of persons,
a limited company Private or Public.
- The agent must be an income
tax payee.
- The foreign supplier appointing
an agent must furnish copies detailing Agreement/terms of
appointment.
- The obligations of an Authorised
Representatives/agent will flow from the contract entered
with the Ministry of Defence.
- The foreign supplier will have
to declare the payments made to the Authorised Representatives/Agent.
- Particulars relating to agency
commission would be reported to the Enforcement Directorate
of Central Board of Direct Taxes.
- The agent will be appointed
with the approval of the Secretary of the Department.
- These instructions will be applicable
for future contracts only.
The new policy
has been successful and the Ministry of Defence has been receiving
requests from various firms for the guidelines issued by the
Government in this regard.
This policy
is applicable to all the defence deals.
This information
was given by the Defence Minister Shri George Fernandes in a
written reply to Shri PK Maheswari in Rajya Sabha today.
