REF: INDEPENDENT-CONTRACTOR-AGREEMENT-INDIA INDEPENDENT CONTRACTOR AGREEMENT
THIS INDEPENDENT CONTRACTOR AGREEMENT (the "Agreement") is made and entered into on this [Agreement Date],
BY AND BETWEEN:
1. [Company / Principal Name], a company incorporated under the Companies Act 2013 / Limited Liability Partnership Act 2008, having its registered office at [Company Registered Address], bearing Corporate Identity Number (CIN/LLPIN) [Company CIN / LLPIN] (hereinafter referred to as the "Company", which expression shall include its successors and permitted assigns) of the FIRST PART;
AND
2. [Contractor Full Name / Trade Name], an independent professional and sole proprietor residing / carrying on business at [Contractor Principal Address], holding Permanent Account Number (PAN) [Contractor PAN] (hereinafter referred to as the "Contractor", which expression shall include their legal representatives, heirs, and assigns) of the SECOND PART.
WHEREAS:
A. The Company is seeking independent professional services in the field of its corporate operations and requires the services of a qualified outside contractor.
B. The Contractor operates an independent business enterprise providing specialized professional expertise and has offered to render services to the Company on an independent principal-to-principal basis.
C. The Parties intend to define their contractual rights, operational autonomy, and commercial liabilities under the Indian Contract Act 1872.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1. APPOINTMENT AND SCOPE OF SERVICES
1.1 The Company hereby retains the Contractor, and the Contractor agrees to perform the following specialized services:
[Nature and Scope of Independent Services]
1.2 The specific deliverables, technical standards, and acceptance criteria required under this engagement are:
[Specific Work Deliverables and Acceptance Criteria]
1.3 The Contractor shall retain complete autonomy regarding the manner, timing, and methodology of performing the services, provided the finished deliverables satisfy the criteria set forth herein.
2. TERM AND DURATION
2.1 This Agreement shall commence on [Agreement Date] and shall continue for a term of [Contract Term / Duration], unless terminated earlier in accordance with the provisions of Clause 8.
3. COMPENSATION AND BILLING
3.1 The Company shall pay the Contractor a total consideration of INR [Compensation / Contract Sum (in INR)] (Indian Rupees) subject to satisfactory verification and acceptance of deliverables.
3.2 Invoicing and disbursement shall adhere to the following frequency and mechanism:
Monthly Invoicing against Verified Timesheets
3.3 Payment of undisputed invoices shall be made via electronic bank transfer (NEFT/RTGS/IMPS) within 15 calendar days from receipt of a formal commercial invoice.
4. TAXATION AND STATUTORY COMPLIANCE
4.1 The allocation of tax responsibilities between the Parties is as follows:
[Tax Deductions and Statutory Levies]
4.2 The Company shall deduct tax at source (TDS) under Section 194J or Section 194C of the Income Tax Act 1961, as applicable, and provide Form 16A TDS certificates in accordance with statutory rules.
4.3 The Contractor assumes sole responsibility for reporting and paying all applicable direct income taxes, professional taxes, and GST under the Central Goods and Services Tax Act 2017.
5. NON-EMPLOYEE STATUS AND LABOUR LAW DISCLAIMER
5.1 The Contractor is strictly an independent contractor and not an employee, agent, partner, or joint venturer of the Company.
5.2 The Contractor is not eligible for, and expressly waives any claim to, employee welfare benefits provided by the Company, including but not limited to gratuity under the Payment of Gratuity Act 1972, provident fund under the Employees Provident Funds and Miscellaneous Provisions Act 1952, insurance under the Employees State Insurance Act 1948, bonus under the Payment of Bonus Act 1965, or severance compensation under the Industrial Disputes Act 1947.
5.3 This Agreement complies with the recognition of independent platform and gig contractors under the Code on Social Security 2020.
6. TOOLS, EQUIPMENT, AND INSURANCE
6.1 The Contractor shall furnish all necessary computing hardware, software licenses, internet connectivity, and operational tools required to perform the services, unless otherwise mutually agreed in writing.
6.2 The insurance and liability framework governing this engagement is:
[Insurance, Liability, and Equipment Provision]
7. RESTRICTIVE COVENANTS AND NON-SOLICITATION
7.1 During the term of this Agreement and for an agreed period following its expiration or termination, the Contractor agrees to the following covenants:
[Non-Solicitation and Non-Interference]
7.2 The Parties acknowledge that this restriction is reasonable and designed to safeguard legitimate business proprietary interests under Section 27 of the Indian Contract Act 1872.
8. TERMINATION AND CURE
8.1 Either Party may terminate this Agreement without assigning cause by providing [Termination Notice Period] advance written notice to the other Party.
8.2 Either Party may terminate this Agreement immediately upon written notice if the other Party commits a material breach and fails to cure such breach within 15 calendar days of receiving written notification.
8.3 Upon termination, the Contractor shall immediately deliver to the Company all completed and in-progress work products, documents, and Company property.
9. GOVERNING LAW AND ARBITRATION
9.1 This Agreement shall be construed, interpreted, and governed in all respects by the laws of India.
9.2 Any dispute or controversy arising out of or in connection with this Agreement shall be referred to arbitration administered under the Arbitration and Conciliation Act 1996 by a sole arbitrator mutually agreed between the Parties. The venue and seat of arbitration shall be in India, and the language shall be English.
9.3 Subject to arbitration, the courts having jurisdiction over the registered office of the Company shall exercise exclusive jurisdiction.
IN WITNESS WHEREOF, the Company and the Contractor have executed this Independent Contractor Agreement as of the date first above written.
FOR THE COMPANY:
Signature: ___________________________
Name: Authorized Signatory
Company: [Company / Principal Name]
CIN/LLPIN: [Company CIN / LLPIN]
THE CONTRACTOR:
Signature: ___________________________
Name: [Contractor Full Name / Trade Name]
PAN: [Contractor PAN]
SCHEDULE OF TERMS, COVENANTS & CONDITIONS(6 ACTIVE CLAUSES)
1. TENURE & TERM OF LEASE: The term of this lease/tenancy shall be for a fixed duration of {{duration_months}} months commencing on {{commencement_date}} and terminating on {{expiry_date}} unless renewed by mutual consent.
2. MONTHLY RENT & DUE DATE: The Second Party covenants to remit a monthly rent of Rs. {{monthly_rent}} payable in advance on or before the {{rent_due_day}} day of each calendar month.
3. REFUNDABLE SECURITY DEPOSIT: The Second Party has deposited an interest-free refundable security sum of Rs. {{security_deposit}} with the First Party, returnable within 7 banking days of vacant handover.
4. PERMITTED USE OF PREMISES: The demised premises shall be utilized exclusively for lawful residential dwelling purposes and shall not be converted into commercial or industrial use.
5. STATUTORY ARBITRATION (ACT 1996): Any dispute arising hereunder shall be referred to a sole arbitrator appointed mutually under the Arbitration and Conciliation Act, 1996, with seat of arbitration in the execution city.
6. SUB-LEASE & ASSIGNMENT PROHIBITION: The Second Party is strictly prohibited from sub-letting, parting with possession, or assigning any portion of the premises to third parties without prior written consent.
ATTESTATION BY INDEPENDENT WITNESSES (AS PER APPLICABLE LAW)
First Witness
Signature:
Full Name:
Parent / Spouse:
Address:
Govt ID / Aadhaar:
Second Witness
Signature:
Full Name:
Parent / Spouse:
Address:
Govt ID / Aadhaar:
