Delay in releasing Advance Payment; Withholding Tax
Our Ref: xxx
Date: xxx
To : xxx Mideast
Oman Branch
Attention : Mr. xxx Sing
Project : xxx Building, Oman
Subject : Delay in releasing Advance Payment; Withholding Tax
Dear Sir,
We refer to our letter Ref. xxx dated 29th June xxxx and previous discussion with you on the subject.
Xxxx has made its position on the Withholding Tax clear in our letter above, and we have been continuously chasing for closure of this issue, and releasing our advance payment, for more than one month now without any appropriate response even though this is impacting the procurement, production and delivery of Pods to your project.
On 21 July xxxx we sent you again a request to confirm release of our advance payment to which you have replied that you are awaiting confirmation from the Employer (Ref Email attached #1). On the same day you also have further confirmed that the Withholding Tax will be applied to the installation cost only (i.e. 35,000 AED) upon confirmation by the Employer. (Ref. Email attached #2)
On 29 July xxxx, the Employer through their finance team has confirmed explicitly that Withholding tax is not applicable for supply & installation of Materials related to Xxxx (Ref. email attached #3).
Till today’s date, even after the Employer’s clear confirmation and instruction, and your own confirmation that the Withholding tax would only be applicable to the installation part of our contract only, you have still not issued final confirmation from your side, and you have still not released our advance payment.
This ongoing delay from you side is restricting us from starting production in the booked time slot allocated to your project, and therefore affecting our entire factory production line.
We therefore notify you that we reserve our right to claim for an Extension of Time (EOT) due to the above ongoing delays. Furthermore, a revised schedule of procurement, production and delivery will be submitted upon the release of the full amount of our advance payment, and Xxxx will not be held responsible for any impact, direct or indirect of these delays.
All rights are reserved
Thanks,
On behalf of Xxx LLC
xxx
Project Manager