2. Introduction IFCI has six subsidiaries and six step down subsidiaries. 3. Scope of work - Advisory services

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1 TENDER No. IFCI/Accts/ /02 Clarification/Queries on tender document for Appointment of Consultant for Direct Tax Matters SN Reference Clarification/Queries Response 1. Declaration We do not have any conflict of interest with IFCI Ltd. Please define conflict of interest Please confirm whether the self- declaration from partner-in-charge of the assignment would suffice. The conflict of interest means any conflict of the Bidder/all Directors or Partners of the Bidder, which may affect the execution of the assignment. 2. Introduction IFCI has six subsidiaries and six step down subsidiaries Does the scope of work extends to the subsidiaries and step down subsidiaries? If yes, please provide all information requested below for subsidiaries and step down subsidiaries as well. General queries for understanding the scale of operations: - What are the no. of branches/ offices all across India? - Whether IFCI has centralized TAN registration? Self-declaration from the authorised signatory of the bidder is required. The scope of work does not extend to the subsidiaries and step down subsidiaries. - IFCI Ltd has seventeen branches/offices across India - Yes, IFCI has centralized TAN registration. 3. Scope of work - Advisory services i) (f) Accounting aspects 4. Scope of work - Advisory services ii) To provide timely analysis and advice on the amendments in income tax laws relevant to IFCI and providing assistance in consequent modification required in the IT systems, accounting processes, record maintenance etc. for ensuring adherence to the amended provisions. Please confirm that the scope would be restricted to providing advisory in relation to tax impact (from a direct tax perspective) of any accounting related change discussed with the Company. Please detail the scope of work in relation to assistance in consequent modification required in the IT systems, accounting processes, record maintenance etc. for ensuring adherence to the amended provisions The scope of work covers providing opinion/ advice on of accounting aspects from direct tax perspective only. For instance matters/instance connected with Deferred Tax, MAT credit etc. It includes functional inputs and review of functionality of the Information Technology system from direct tax compliance perspective including TDS provisions. It is clarified that, the assistance shall not include writing of software logic or coding. Likewise amendments in income tax laws may also require preparation of additional details, reconciliations, etc. for ensuring adherence to the amendments.

2 5. iii) To review, advise and provide implementation assistance for carrying out necessary modifications w.r.t. income tax compliances in the IT systems being used by IFCI. Also, IFCI is under the process of migration of its existing accounting system to Finacle software. The consultant shall be required to provide implementation assistance for bringing out modifications/customization required for income tax compliances 6. Scope of Representation Services (v) To prepare opinion paper, query sheet, submissions, paper-book, briefings and affidavit, applications, as and when required, for appeals before various appellate authorities, authority for advance rulings (AAR) or any other IT authority 7. Scope of Representation Services (vi) To represent IFCI before the appellate authorities up to CIT (Appeals)/ AAR/ and other equivalent Appellate authority for this purpose Please confirm that the scope would cover advising on the documentation/ reports/ statements to be maintained/ furnished to ensure adherence with income tax compliances, including the necessary accounting system and not actual assistance in implementation/ modification in the accounting system. The scope covers to provide functional clarification on the matter relating to direct tax as domain expert only and does not involve any information technology related services including but not limited to system requirement specification, functional requirement specification and testing of IT application. Please confirm that the scope would include filing of submissions, paper-book, briefings and affidavit, applications for appeals before CIT(Appeals) or any other equivalent authority. Please confirm that the scope would include appearance before appellate authorities up to CIT (Appeals) or any other equivalent authority and it would not include appearance before the AAR. It includes providing functional inputs with respect to the documentation/ reports/ statements to be maintained/ furnished to ensure adherence with income tax compliances, along with the necessary accounting system. It covers review/testing of functionality of the system from direct tax compliance perspective. The scope does not cover Information Technology related technical services, development of software, writing software logic, system requirement specification and technical testing of Information Technology application. The scope shall include filing of submissions, paper-book, briefings and affidavit, applications for appeals before CIT (Appeals), AAR or any other equivalent authority. In addition the consultant shall be required to deal with notices/queries sought by various IT authorities other than ITAT, High court & Supreme Court. The scope include appearance before appellate authorities up to CIT (Appeals) or any other equivalent authority. It also includes appearance before the AAR. 8. Scope of Representation Services (vii) To provide handholding and end to end support in dealing with advocates/consultants associated with IFCI for income tax matters pending before ITAT, High Court and Supreme courts, if any. The support shall include providing advice, preparation of required Please confirm that the said scope does not include preparation of appeal/ Writ/ SLP or any other document to be filed. Also please confirm that the scope would not include representation before the ITAT, High Court and Supreme court but only review/ support to IFCI s advocates. In respect of appeals before ITAT, Supreme court, High Court the handholding shall include preparation of inputs for submission, review of submissions providing advice, holding discussion with advocates etc. It shall not include

3 documentation and participation in all the discussions with advocates. representation and preparation of filings before ITAT/ courts. 9. Eligibility Criteria Eligibility criteria for submission of technical bids. Points no. iv) to vii) - Average turnover of 25 crores or more - Atleast 10 partners and professionals providing consultancy in direct tax matters - Provided consultancy to atleast 5 listed companies having turnover of 2000 cr or more - Provided consultancy to atleast 2 NBFCs/ Banks Please confirm whether a self-certification for the points mentioned herein will suffice. Given the paucity of time, we would like to request that self-certification of all these criterions/ documents be allowed. However, if selected, we can submit the certificate from a Chartered Accountant, or ELs/ Work orders, etc. in case of criterions pertaining to no. of listed companies and NBFCs/ Banks that we have worked for. Also, please confirm that for the purpose of eligibility the turnover of the bidder alone will be considered, and the turnover of bidder s member firms/ subsidiaries/ JVs etc. will not be considered. It is clarified that documentary evidence along with CA certificate for each of the criterion is required to be submitted as prescribed in the tender. Further it is clarified that the turnover of bidder s member firms/ subsidiaries/ JVs etc. will not be considered. 10. Penalty Clause xxii) Any delay in completion of the job as per scope of work, or part thereof will invite imposition of 2% per week of delayed portion or part thereof subject to a maximum of 10% of the total price Please specify the nature of delays that would attract penalty. Also please confirm that the penalty would be attracted only if the specified delay is caused solely on bidder s account. 11. Due Date of bidding We would like to request grant of extension of at least 7 days for filing the bid and documents, given the fact that the process involves collation of significant documentation. 12. General Please confirm that scope does not cover the services in relation to preparation of transfer pricing documentation including transfer pricing study and Form 3CEB. 13. Scope of work: Advisory services iii) To review, advise and provide implementation assistance for carrying out necessary modifications w.r.t. income tax compliances in the IT systems being Request you to please clarify the requirement from the consultant in the implementation of the new accounting software for carrying out income tax compliances. Is it preparation of a comprehensive checklist in relation to all direct tax compliances? Delay shall mean the delay attributable to the consultant. Extension has been provided. Please refer corrigendum issued in this regard. The scope does not cover the services in relation to preparation of transfer pricing documentation including transfer pricing study and Form 3CEB. However any advice with respect to transfer pricing provision would be covered. It includes providing functional inputs with respect to the documentation/ reports/ statements to be maintained/ furnished to ensure adherence with income tax compliances, along with the necessary

4 used by IFCI. Also, IFCI is under the process of migration of its existing accounting system to Finacle software. The consultant shall be required to provide implementation assistance for bringing out modifications/customization required for income tax compliances. accounting system. It covers review/testing of functionality of the system from direct tax compliance perspective. The does not cover Information Technology related technical services, development of software, writing software logic, system requirement specification and technical testing of 14. iv) To assist IFCI in tax planning and advising on various tax efficient options considering business model of IFCI. Will this be an exercise to be carried once in a year or will this include responding from time to time to queries as well. 15. Compliance services We understand that the tender would be for a calendar year. In the first year, it will include preparation of withholding tax return for the four quarters covered during the tender period and Income tax return would be for financial year Representation services 1. Please provide us the list of pending direct tax litigations (including ITAT, AAR, HC appeals) along with details of the forums at which they are currently pending and broad categories of the issues. This will give us clarity in estimating our efforts after factoring in whether the issues are of repetitive nature or not. 2. List of appeals pending for order giving effect; and; 3. Details of assessment years for which refund orders and rectification orders are pending. 17. Eligibility Criteria Please let us know the type of documentary evidences that would be required for substantiating the experience of working as Direct tax advisors to listed companies having turnover of more than two thousand crores and Banks/NBFCs. Will you be considering declaration from the firm s affiliates/licensees/sublicenses as well? Information Technology application. The exercise would be carried out once in year and it includes responding to queries from time to time as well. The scope does not include withholding tax return. The scope only includes income tax return required to be prepared during the period of contract. The ITRs may pertain to different financial years - original or revised, as the case may be. Access to required details will be provided upon receipt of Demand Draft of tender cost along with self-certified declaration, as prescribed in the tender document. The documentary evidence could be any document which would enable us to verify the corresponding criteria. For example, engagement letter, letter of award, completion letter, etc. Any declaration from the firm s affiliates/licensees/sublicenses shall not be considered.

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