Regarding vat

   Mr Zuber Khan,,

  The govt itself can not say that it will not pay VAT on the sale made to it as per the tender.Reimbursement of expenses and payment of taxes are two diffrent items and they should be understood properly. Reimbursements of expenses such as conveyance,testing, installation,etc are additional in nature to the value of goods and the govt has agreed to meet those expenses by way of reimbursement. In the case of VAT,it is compulsory for any seller to charge and collect and for the buyer to pay. So it is never mentioned as a reimbursible expense. You should charge VAT at the applicable rate in the invoice and it is included in the price.The govt will pay that also........MJK