Draft an India-ready Consultancy / Independent Contractor Agreement establishing clear scope of services, retainer or milestone fee structure, GST + Section 194J TDS deduction, Intellectual Property assignment to Client, confidentiality, and arbitration in India.
Use our Consultancy Agreement generator to create an editable draft structured around Indian Contract Act, 1872; Specific Relief Act, 1963; Section 194J Income Tax Act 1961 (TDS). Suitability depends on your facts and applicable law; have the draft reviewed by a qualified professional before signing or filing.
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Statutory & Practice Overview
Draft an India-ready Consultancy / Independent Contractor Agreement establishing clear scope of services, retainer or milestone fee structure, GST + Section 194J TDS deduction, Intellectual Property assignment to Client, confidentiality, and arbitration in India.
| Compliance Parameter | Statutory Position / Standard Requirement |
|---|---|
| Governing Statutes | Indian Contract Act, 1872; Copyright Act, 1957 (IP Assignment u/s 19); Section 194J Income Tax Act, 1961 (TDS); Arbitration & Conciliation Act, 1996 |
| Tax & GST Check | Fees attract TDS under Section 194J (typically 10% for professional/technical services, or 2% where applicable) + GST forward charge if Consultant crosses threshold/registered |
| IP Assignment Rule | Unlike employees (Section 17(c) Copyright Act), IP created by an independent Consultant stays with the Consultant UNLESS assigned in writing under Section 19 |
| Non-Compete Caveat (s.27) | CRITICAL: Under Section 27 of the Indian Contract Act, 1872, post-termination non-compete restraints are VOID in India; in-term exclusivity & non-solicitation / confidentiality clauses ARE enforceable |
| Stamp Duty & Registration | General contract stamp duty applies as per the State Stamp Act where executed (NOT compulsorily registrable); digital/e-Sign valid under IT Act 2000 |
Review the legal purpose of each operative clause before signing, certifying, or filing with the Registrar of Companies or Sub-Registrar.
Expressly negates employment, agency, or partnership status and provides for GST billing plus statutory TDS deduction under Section 194J of the Income Tax Act, 1961.
Transfers ownership of all deliverables, code, reports, and work product exclusively to the Client — essential under Indian Copyright Act rules for non-employee contractors.
Binds confidentiality for a defined post-termination survival term; note under Section 27 of the Indian Contract Act, post-termination non-compete restraints are unenforceable in India, so rely on in-term conflict restrictions and post-term confidentiality/non-solicitation (customizable via AI Editor).
Caps consultant liability to trailing-months fees paid, excludes consequential damages, and establishes arbitration seated in your chosen Indian city under the 1996 Act.
Practical guidance on Indian statutory rules, format requirements, Word/PDF exports, and filing compliance for Consultancy Agreement.