Rule 144 (xi) — NONCONSULT_MANUAL

S. No Scenario Applicability of Rule 144

(xi) a) The equipment/ goods have been purchased or will be purchased from a company (manufacturer) from a country which shares a land border with India. The bidder has procured certain goods to offer the requisite services to a procuring entity. In such case, the bidder does not fall within the definition of the terms “bidder” as defined under sub-para 4-e) above. Hence, the provisions of Rule 144

(xi) of GFR, 2017 do not apply to this case. b) By entering into a MOU/ lease agreement with the company (who owns the equipment/ goods) from a country that shares a land border with India Here, the bidding vendor proposes to hire services from a company that belongs to a country that shares a land border with India. This prima facie becomes the case of an indirect supply of services by a company that owns the equipment/ goods by introducing an intermediary. The intermediary merely acts as an agent to the company providing services of the equipment. In such a case registration of company owning the equipment and indirectly supplying the services shall require to be registered with the competent authority, thereby requiring the need to fulfil the provisions of Rule 144 (xi). c) By entering into an MOU/ lease agreement with the company (say ‘X’, who is the present owner of the equipment) from a country that does not share a land border with India. The equipment has been purchased from the manufacturer of the company (say ‘Y’), which is from a country that shares a land border with India. In this case, the actual supplier of services, prima facie, shall be ‘X.’ The status of ‘X’ in this case does not attract the provisions of Rule 144 (xi).