INVITATION FOR SUBMISSION OF EXPRESSION OF INTEREST FOR PROFESSIONAL SERVICES IN DIRECT AND INDIRECT TAXATION 1
2 Notice for Invitation for submission of Expression of Interest for professional services in Direct and Indirect Taxation 1.0 Introduction 1.1 India Infrastructure Finance Company Limited (IIFCL) is a wholly owned Government company, established under the Companies Act, 1956 having its Registered Office at 8 th Floor, Hindustan Times Building, 18 & 20, Kasturba Gandhi Marg, New Delhi 110 001 India. India Infrastructure Finance Company Limited (IIFCL) provides long term finance to commercially viable infrastructure projects in sectors like road, power, airport, port, urban infrastructure etc. as per the Scheme for financing Infrastructure through Special Purpose Vehicle called IIFCL. Within a short span of 6 years since commencement of operations in April 2006, the company has carved a niche for itself in infrastructure financing sector of the country by providing lending to projects in diversified segments of infrastructure sector spread across the country. The summary of operational and financial performance of IIFCL for the half year ended 30 th September 2012 is as under: (` in crore) Cumulative Net Sanctions in 274 projects 40,855 The cumulative disbursements in 187 projects (including `4,168 crore and `2,005 crore under Refinance Scheme and Takeout Finance Scheme (s) respectively) 23,702 The summary of financial details of IIFCL (here-in after referred to as company) as at 30 th September 2012 are as under:- (` in crore) Authorized Capital 5000 Paid-up equity share capital 2900 Total Revenue 1,546 Operating Profit 655 Profit before Tax 821 Interim Dividend 221 Net Profit available for Appropriation 580 Net Profit available for Distribution 463 2.0 Brief details of Expression of Interest (EOI) 2.1 The Company intends to engage a consultant for professional services in Direct and Indirect Taxation on retainership basis. This invitation is issued to invite Expression of Interest from eligible firms and shortlist consultant for professional services in Direct Tax and Indirect Taxation on retainership basis. This document is neither a recommendation, nor offer or invitation to enter into a contract, agreement or any other arrangement in respect of the services.
3 3.0 Objective 3.1 The Company intends to upgrade policies, procedures, efficient monitoring of processes, transactions, compliances, etc. related to applicable direct and indirect matters with the assistance of professional consultants and issues invitation for Expression of Interest in this regard.. 3.2 Sealed two-part offers are invited by Accounts Department, IIFCL at Registered Office, from bonafide & reputed professional firms of Chartered Accountants engaged in the field of corporate taxation and having adequate infrastructure and establishment, for rendering professional consultancy services in the field of Direct and Indirect Taxation. The applicants shall be required to render Professional Services in the field of Corporate Taxation (Direct and Indirect Tax) on Retainership Basis for the period from assessment pertaining to AY 2014-15 and subsequently subject to further renewal at the sole discretion of IIFCL. 4.0 Scope of work Direct Tax The scope of services would include the following work. The list is indicative and not exhaustive: a) Assisting in estimation of payment of advance Income Tax & related issues, compliance relating to deduction of tax at source and preparation of returns thereto, examining the tax implications of referred transactions & related issues. b) Scrutiny of the draft final accounts, prior to their finalization, to examine the tax implications of different transactions for the purpose of making tax provision (income tax as well as deferred tax) & otherwise. c) Assisting in preparation and filing of Corporate Income Tax Returns as per Income Tax Act, 1961, filing of the same & of the Income Tax Act, 1961 adhering to various compliances and disclosures as may be necessary. d) Assisting in proceedings u/s 143(1) of the Income Tax Act, 1961 towards processing of return of income. e) Assisting in scrutiny assessment u/s 143(3) in the area of strategic drafting of replies, scrutinizing the details from tax point of view and appearing for hearings as may be required and suggesting whether any appeal needs to be filed against order passed u/s 143(3) of the Act. f) Examining referred changes in Finance Bill with reference to the operations of the company and giving chamber advice. g) Advising on maintenance of records and required documentation for proper compliance under the Income tax statute. h) Providing guidance in maintenance of Direct Tax MIS. i) Computation of tax deduction at source (TDS) from salary, allowances, perquisites and other benefits of employees.
4 j) Advise applicability of relevant provisions of Income tax Act, 1961 regarding Tax Deduction at Source on all the payments made by IIFCL. k) Submission, filing of TDS returns and revision of returns, if required l) All the compliances pertaining to the Assessment year 2014-15 including filing of Income Tax return and TDS Return. m) Assisting in computation of Wealth Tax and filing of return of the same. Handling of all other direct tax matters, proceedings and consultations including, inter alia, appeals before CIT(Appeals), I.T.A.T., reference, revision, rectification, reassessment, appeal effect, audit objections. n) Assisting in granting of refund and other proceedings in relation thereto Part-B: This would cover the following a) Interaction and representation, if and when necessary to CIT, CCIT, CBDT, directly &/or through various chambers on significant issues requesting executive clarification or intervention on legislative amendments to avoid protracted litigation. b) Giving written opinion or assisting in obtaining Counsel s opinion, briefing and assisting the Senior Counsel, if any, engaged. c) Assisting in all proceedings and compliance in the field of Wealth Tax, giving consultation in respect of allied laws, doing Transfer pricing (TP) documentation study report, TP certification, TP assessment u/s 92CA(3) d) Proceedings before High Court/ Supreme Court e) Audits, Certifications, Valuation for any purpose (taxation or otherwise). f) Any other assignment, not covered by Part A-above. 5.0 Scope of work Indirect Tax (Service Tax) The scope of services would include the following work. The list is indicative and not exhaustive: Part-A: a) Settling replies to Show Cause Notices (other than Show Cause Notice issued pursuant to a raid or search or investigation where extended period of limitation is involved). b) Review and filing of periodic Service Tax return or any other indirect tax return. c) Settling replies to spot memos, queries & audit objections raised by the Department and rendering strategic support thereto.
5 d) Guidance as and when sought for on procedural and legal matters in relation to Service Tax matters. e) Examining referred changes in Finance Bill with reference to the operations of the company and giving chamber advice. f) Advising on maintenance of records and required documentation for proper compliance under the service tax statute. g) Providing guidance in maintenance of Indirect Tax MIS. h) All the compliances pertaining to the Assessment year 2014-15 including filing of Service Tax Return. i) Handling of all other indirect tax (Service Tax) matters, proceedings and consultations including, inter alia, pending matters, refund proceedings, & litigations of earlier years Part B: a) Interaction and representation, if and when necessary to CST, CCST, CBEC, directly &/or through various chambers on significant issues requesting executive clarification or intervention on legislative amendments to avoid protracted litigation. b) Giving written opinion or assisting in obtaining Counsel s opinion, briefing and assisting the Senior Counsel, if any, engaged. c) Assisting in review and vetting of various contracts from the point of view of Service Tax. d) Assisting in all proceedings before High Court/ Supreme Court e) Assisting in all proceedings and compliance in the field of allied indirect tax laws like Central Excise, Customs, VAT, local taxes etc, giving consultation in respect of the said allied laws. f) Audits, Certifications, Valuation for any purpose (taxation or otherwise). g) Any other assignment, not covered by Part A-above. 6.0 Eligibility Criteria of Firm / Company: 6.1 Location of the organisation a. The Firm should have its office in Delhi /NCR and the office at Delhi /NCR should possess resources to operate independently for providing required services. 6.2 Strength of the organisation in Corporate Taxation a. The Firm must have at least four Partners having expertise in the areas of corporate taxation. b. As on 31.12.2012, the Firm taking up the assignment should have a minimum strength of 10 Chartered Accountants, including Partners, working in Corporate Taxation.
6 6.3 Post qualification experience of Partners in Corporate Tax with applicant Firm a. At least 2 Partners of the Firm should have post qualification experience of 10 years + with the applicant firm and b. The partners must have experience of appearing before various assessing authorities, appellate authorities including Income Tax Appellate Tribunal, CESTAT etc. 6.4 Area of operation & experience in Corporate Taxation a) The Firm must have handled Tax/Audit Matters relating to Infrastructure finance companies. b) The Firm must have experience of handling corporate taxation matters for at least 10 years+ and should have experience of at least 2 years in the process of return filing, assessment, appeals etc. c) The primary focus of the Firm should be in tax practice in the field of corporate taxation direct & indirect tax 6.5 General a. The applicant should not have been black listed/debarred/ disqualified by any regulatory/ statutory body or Government entity or any International/National agency for corrupt or fraudulent practises. b. The applicant should not have an adverse litigation history. 7.0 Commercials 7.1 The applicants shall be required to quote a fixed fee for execution of assignments as mentioned in Part - A of Para 4.0 & 5.0 above for Direct & Indirect Tax assignments. 7.2 For execution of assignments as referred in Part B of Para 4.0 & 5.0, the applicants shall separately provide the consolidated amount chargeable for the work execution before various authorities. 7.3 Further, the applicants shall be required to provide a specific average charge out rate in accordance with their regular business policies. The specific average charge out rate means the fixed charge rate per hour that the applicant shall levy for the aforementioned services irrespective of the involvement of different level of professionals/executives/manpower. 8.0 Tenure, continuity & exit clause 8.1 The agreed remuneration shall be effective for the period FY 2013-14. In case of renewal there shall be annual escalation, effective from the first day of April of the respective financial year by 10%. The fixed fees shall become due in four equal quarterly instalments on 1st April, 1st July, 1st October & 1st January of the respective year. 8.2 The engagement may be terminated by either side at the end of any financial year by giving 1 month notice in writing.
7 9.0 Technical Feasibility (a) (b) (c) The Firm (referred as applicants ) should meet the eligibility criteria to come under the purview of Technical Feasibility. In support of fulfilling Technical Feasibility criteria, the applicants shall be required to furnish entire set of documents to be submitted in a separate sealed cover, super scribing ")- PART - I : ACCOUNTS DEPARTMENT- For rendering Professional Services in the field of Corporate Taxation (Direct and Indirect Tax)-TECHNICAL FEASIBILITY. The applicant are also required to submit an affidavit signed by a Partner of the Firm, to the effect that each of the requirements stated hereinabove has been complied by it. 10.0 Financial Quote (a) (b) The Firm (referred as applicants ) should be Technically Feasible to be considered for evaluation of Financial Quote. The applicants in support of their Financial Quote shall be required to furnish their commercials in a separate sealed cover, super scribing PART - II : ACCOUNTS DEPARTMENT- For rendering Professional Services in the field of Corporate Taxation (Direct and Indirect Tax)-FINANCIAL QUOTE 11.0 Procedure for submission and opening of Expression of Interest (EOI) 11.1 One hard copy of Part-I & Part-II each of Expression of Interest as stated in para 11.2 & 11.3 below, in two separate sealed envelopes duly marking the same as original and also mentioning the name and address of the firm/bidder on the envelopes needs to be submitted in one sealed and marked master envelope labelled Expression of Interest for services in Direct & Indirect Taxation. If the master envelope is not sealed and marked properly as above, the company will not assume any responsibility for its misplacement, premature opening, late opening etc. Further, the sentence NOT TO BE OPENED before 5.00 p.m., Tuesday 21 st May 2013 (due date & time of tender opening) are also to be put on these envelopes and submitted at the following address : The Deputy General Manager (DGM), India Infrastructure Finance Company Limited 8th Floor, Hindustan Times Building, 18 & 20, Kasturba Gandhi Marg, New Delhi 110 001 Telephone No. - 011-23450222 Fax Number - 033-23730251 The Expression of Interest comprises of Part-I & Part-II as under:- 11.2 Part I of the offer should be submitted in a separate sealed cover, super scribing "PART-I (Accounts Department) for rendering Professional Services in the field of Corporate Taxation (Direct and Indirect Tax). Part I of the offer should contain the following:
8 a. Profile of the Firm with address, year of establishment, Status of the Firm, Name of the Partners, Membership number of Partners and Firm as registered with ICAI. b. List of Offices/establishments in various parts of the country. c. List of the work done in last 5 years with name of the clients for which professional services have been rendered. d. Specific information in relation to each of the technical requirement as stated in Para 6.1 to 6.4 (stating Yes/No against each sub-item). 11.3 Part II of the offer should be submitted in a separate sealed cover, super scribing "PART-II (Accounts Department) for rendering Professional Services in the field of Corporate Taxation (Direct and Indirect Tax).Part II of the offer should contain the following: a. Fixed Fees for execution of the assignments as mentioned in Part-A of Para 4.0 & 5.0 for Direct & Indirect Tax separately. b. Specific average charge out rate in accordance with regular business policies. 11.4 Part-II of the offer shall be opened only if the company is satisfied that the applicant satisfies and fulfils the Technical Evaluation. In case the applicant does not satisfy the Technical feasibility, Part-II shall not be opened and shall be rejected as it is. There will be no obligation on part of the company to send any intimation to the applicant firm in case of rejection of their application. 11.5 The selection shall be done based on eligible and/or lowest bid, as the case may be, offered by the applicants subject to the decision of the company. 12.0 EOI Validity Period Last day for submission of Expression of Interest (EOI) is Monday, 20 th May 2013. The EOI s would be opened at 5.00 p.m. on Tuesday 21 st May 2013 at Board Room, IIFCL, having its Registered Office at 8 th Floor, Hindustan Times Building, 18 & 20, Kasturba Gandhi Marg, New Delhi 110 001 India and authorised representatives of the firms/bidders would be required to attend the opening of the EOIs. The company will not entertain any communication initiated by applicants and received after the last date of submissions. However, the company may, in its absolute discretion, seek additional information or material or evidence from any applicant after the last date and all such information and material provided must be taken to form part of applicant s response. Any additional information or material or evidence so requested would be required to be submitted within 7 days of the requisition. 13.0 Rejection of EOI a. If it is received after the expiry of due date of submission of Expression of Interest i.e Monday, 20 th May 2013. b. If it is not received in sealed condition as specified. c. If it is conditional. d. If it is not in conformity with the instruction mentioned herein. e. If it is not properly signed by the authorized representative of consulting firm f. If it is incomplete including non-furnishing of the requisite documents. g. If it is not in compliance with any of the requirements/conditions as specified elsewhere in this document. h. Any form of canvassing / lobbying / influence, etc. will be a disqualification.
9 14.0 Declaration The applicants not being allotted with the assignments shall not solicit any reason for not being so selected. In case, the company finds any allegation / loss of reputation for the act of the applicants, the company reserves the right to file legal suit in the court law to claim for the damages.
10 Evaluation Criteria The following evaluation criteria will be applied for evaluating the selection of the applicants. The evaluation shall be based on top-down approach indicating the applicant s more favourable probability to win the assignment if they get maximum qualifying score. The table for obtaining qualifying scores are as under: Sl. Criteria No. 1. Location of the organisation [refer para 6.1, point a ] 2. Strength of the organisation in Corporate taxation [refer para 6.2](10 % for each sub-point) 3. Post qualification experience of Partners in Corporate Tax with applicant Firm [refer para 6.3](10% for each sub-point) Maximum Score 10% 20% 20% 4. Area of operation and experience in Corporate 50% taxation [refer para 6.4][(Maximum 30% for sub-point (a), 10% for sub-point (b) & 10% for sub-point (c) Total 100% (a) The minimum qualifying score shall be 60%. (b) (c) (d) The QCBS( Quality & Cost Based Selection) criteria of Technical & Financial Parameters using the weight ratio of 60: 40 would be applied to calculate the scores of the bidders Maximum of ten applicants depending on their order of merit, ranked on the basis of the scores will be short listed. If more than one applicant secures tenth place, the one securing more under location criteria will be short-listed.