TAXES (SERVICES)
Other Names: Payment of Taxes • Applicable Taxes
Sample Clause Language:
Without limiting any provisions of this Agreement, [CLIENT] shall bear any and all Taxes and other similar charges (and any related interest and penalties) imposed on, or payable with respect to, any fees or charges payable by it pursuant to this Agreement, including all sales, use, value-added, and similar Taxes, but excluding any Taxes on [SERVICE PROVIDER]’s income. Notwithstanding anything to the contrary in the previous sentence or elsewhere in this Agreement, [CLIENT] shall be entitled to withhold from any payments to [SERVICE PROVIDER] any such Taxes that [CLIENT] is required by applicable law to withhold and shall pay such Taxes to the applicable national, foreign, municipal, state, federal or other Governmental Authority responsible for the administration of any Tax.
Source: Raytheon Technologies Corp. (2020, April 8). Form 8-K. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml
Description:
Taxes clauses provide who will be responsible for paying the taxes relating to the fees for services. The sample clause here is drafted in favor of the service provider and provides that the client or customer will assume responsibility for any sales and use taxes relating to the services it receives from the service provider.
Common Contracts with this Clause:
- Service Agreements
- Contractor Agreements
- Consultant Agreements
What you'll see with Lawgood:
Two (2) Alternative Positions
- Favorable to Service Provider
- Favorable to Client
Draft better contracts with Lawgood.