24 May 2019
We entered into a NDA with company A, had lengthy discussion for 60+ days regarding an upcoming project and froze on cost and timeline. At time sending agreement, they asked us to sign with company B, and finally switched to company C at the last minute. In fact, the contract with Company C was pre-dated by 3-4 days, because Company A transferred knowledge shared with it.
In discussion with Company A, amount was X lakh / month, incl all tax. With Company C, the bill was X lakh per month, incl tax... But with 0% service tax due to exemption for small companies. The only financial benefits from switching companies is Company C, not us... our out flow remained X lakh per month irrespective of company.
Why did we switch from A to B to C? NDA and Contract bound affiliates.. and A, B, C shares brand name, logo, letterheads, website, phone number, employees, etc. In fact, if company C sent us a letter, it used Company A's envelopes. When we took them jointly to Arbitration, they claimed not to know each other. Bad move for them.. for now we sued all 3 separately and put cases u/s 72 and 72a of Information Technology Act, 2000.
However, there is rule against claiming service tax exemption while using another's brand name / logo. How do we complain, to whom and where? It's Pune based.