GAIL (India) Limited MECON LIMITED

97 Deductions from the contractprice:97.1 All costs, damages or expenses which EMPLOYER may have paidor incurred, which under the provisions of the CONTRACT, theCONTRACTOR is liable/will be liable, will be claimed by theEMPLOYER. All such claims shall be billed by the EMPLOYER tothe CONTRACTOR regularly as and when they fall due. Suchclaims shall be paid by the CONTRACTOR within 15 (fifteen) daysof the receipt of the corresponding bills and if not paid by theCONTRACTOR within the said period, the EMPLOYER may, then,deduct the amount from any moneys due i.e., ContractPerformance Security or becoming due to the CONTRACTORunder the CONTRACT or may be recovered by actions of law orotherwise, if the CONTRACTOR fails to satisfy the EMPLOYER ofsuch claims.SECTION-VII Taxes and Insurance98 Taxes, Duties, Octroi etc: 98.1 The CONTRACTOR agrees to and does hereby accept full andexclusive liability for the payment of any and all Taxes, Duties,including Excise duty, octroi etc. now or hereafter imposed,increased, modified, all the sales taxes, duties, octrois etc. now inforce and hereafter increased, imposed or modified, from time totime in respect of WORKS and materials and all contributions andtaxes for unemployment compensation, insurance and old agepensions or annuities now or hereafter imposed by any Central orState Government authorities which are imposed with respect to orcovered by the wages, salaries, or other compensations paid to thepersons employed by the CONTRACTOR and the CONTRACTORshall be responsible for the compliance of allSUB-CONTRACTORS, with all applicable Central, State, Municipaland local law and regulation and requirement of any Central, Stateor local Government agency or authority. CONTRACTOR furtheragrees to defend, indemnify and hold EMPLOYER harmless fromany liability or penalty which may be imposed by the Central, Stateor Local authorities by reason or any violation by CONTRACTORor SUB-CONTRACTOR of such laws, suits or proceedings thatmay be brought against the EMPLOYER arising under, growing outof, or by reason of the work provided for by this CONTRACT, bythird parties, or by Central or State Government authority or anyadministrative sub-division thereof.Tax deductions will be made as per the rules and regulations inforce in accordance with acts prevailing from time to time.99 Sales tax/turnover tax: 99.1 Tenderer should quote all inclusive prices including the liability ofSales Tax/Turnover Tax whether on the works contract as a wholeor in respect of bought out components used by theCONTRACTOR in execution of the CONTRACT. EMPLOYERshall not be responsible for any such liability of the CONTRACTORin respect of this CONTRACT.100 Statutory variations 100.1 Tenderer should quote prices inclusive of excise-duty and sales taxapplicable on finished product. Any statutory variations in ExciseDuty and sales tax on finished product during the contractualcompletion period, shall be to the Employer's account for which theContractor will furnish documentary evidence(s) in support of theirclaims to GAIL. However, any increase in the rate of these taxes