Common use of Indirect Tax Clause in Contracts

Indirect Tax. (a) All amounts set out or expressed in a Transaction Document to be payable to the Owners shall be deemed to be exclusive of any Indirect Tax. If any Indirect Tax is chargeable on any supply made by the Owners to the Charterers in connection with a Transaction Document, the Charterers shall pay to the Owners (in addition to and at the same time as paying the consideration) an amount equal to the amount of the Indirect Tax. (b) Where a Transaction Document requires Charterers to reimburse the Owners for any costs or expenses, the Charterers shall also at the same time pay and indemnify the Owners against all Indirect Tax incurred by the Owners in respect of the costs or expenses to the extent the Owners reasonably determine that they are not entitled to credit or repayment in respect of the Indirect Tax.