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Service Fee Agreement Template for Pakistan

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Key Requirements PROMPT example:

Service Fee Agreement

"I need a Service Fee Agreement for my Pakistan-based IT company providing software development services to a US client, with monthly payments in USD and specific data protection clauses, starting from March 2025."

Document background
The Service Fee Agreement is a crucial document used in Pakistani business operations to formalize service arrangements between providers and clients. It is particularly relevant when professional or specialized services are being provided for a fee, whether in a domestic or cross-border context. The agreement needs to comply with Pakistani legislation, including the Contract Act 1872, Income Tax Ordinance 2001, and Sales Tax Act 1990. This document typically includes detailed provisions for service scope, fee structures, payment terms, tax considerations, and regulatory compliance requirements. It is commonly used in various business sectors and can be adapted for both simple and complex service arrangements, while ensuring alignment with Pakistani legal requirements and business practices.
Suggested Sections

1. Parties: Identification and details of the service provider and service recipient, including registration numbers and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the service arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided, including any specific deliverables or performance standards

5. Service Fees and Payment Terms: Fee structure, payment schedule, invoicing requirements, and payment methods

6. Tax Obligations: Responsibilities for withholding tax, sales tax, and other applicable taxes

7. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

8. Obligations of the Service Provider: Key responsibilities, service standards, and compliance requirements

9. Obligations of the Client: Client's responsibilities, including providing necessary information and access

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property: Ownership and usage rights of any IP created during service provision

12. Liability and Indemnification: Limitations of liability and indemnification obligations

13. Force Majeure: Provisions for unforeseen circumstances preventing performance

14. Governing Law and Dispute Resolution: Applicable law and mechanism for resolving disputes

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Service Levels: Include when specific performance metrics or service levels need to be maintained

2. Currency and Exchange Rates: Include for international service arrangements involving foreign currency

3. Insurance: Include when specific insurance coverage is required for the services

4. Data Protection: Include when personal data processing is involved in service delivery

5. Compliance with Anti-Corruption Laws: Include for high-value contracts or when dealing with government entities

6. Non-Competition: Include when protecting against competitive activities is crucial

7. Staff and Subcontractors: Include when service provider may use subcontractors or specific staff requirements exist

8. Change Control: Include when scope of services may need to be modified during the term

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed breakdown of services, deliverables, and technical specifications

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment milestones

3. Schedule 3 - Service Levels: Specific performance metrics, reporting requirements, and remedies

4. Schedule 4 - Key Personnel: List of key staff members assigned to provide the services

5. Schedule 5 - Required Documentation: List of documents, permits, and certifications required

6. Appendix A - Form of Invoice: Template for invoices meeting local tax and regulatory requirements

7. Appendix B - Compliance Certificates: Required regulatory and tax compliance certificates

8. Appendix C - Report Templates: Standard templates for service delivery reports and documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































Clauses












































Relevant Industries

Information Technology

Professional Services

Management Consulting

Financial Services

Engineering

Healthcare

Education

Manufacturing

Telecommunications

Real Estate

Construction

Business Process Outsourcing

Legal Services

Marketing and Advertising

Research and Development

Relevant Teams

Legal

Finance

Procurement

Operations

Business Development

Compliance

Commercial

Contract Administration

Project Management

Account Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Contract Manager

Procurement Manager

Business Development Manager

Operations Director

Project Manager

Finance Manager

Compliance Officer

General Manager

Department Head

Service Delivery Manager

Account Manager

Commercial Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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