Common use of Payment and Tax Clause in Contracts

Payment and Tax. C2.1 XXX shall pay the undisputed sums due to the Contractor in accordance with the terms set out in the Form of Agreement. C2.2 Each invoice shall contain all appropriate references and a detailed breakdown of the Services and shall be supported by any other documentation required by the Contract Manager to substantiate the invoice. C2.3 Where the Contractor enters into a sub-contract with a supplier or contractor for the purpose of performing the Contract, it shall cause a term to be included in such a sub-contract which requires payment to be made of undisputed sums by the Contractor to the sub-contractor within a specified period not exceeding 30 days from the receipt of a valid invoice, as defined by the sub-contract requirements. C2.4 Tax, where applicable, shall be shown separately on all invoices as a strictly net extra charge. C2.5 XXX may reduce payment in respect of any Services, which the Contractor has either failed to provide or has provided inadequately, without prejudice to any other rights or remedies of XXX. C2.6 The Contractor shall not suspend the supply of the Services unless the Contractor is entitled to terminate the Contract under Clause H2.3 for failure to pay undisputed charges. C2.7 If XXX fails to pay any amount payable by it under this Contract by the due date for payment the Contractor shall be entitled but not obliged to charge XXX interest on the overdue amount at a rate of 2% (two per cent) above the base Rate of the Bank of England per annum and such interest shall accrue on a daily basis from the day after the due date up to the date of actual payment. The parties agree that this Clause C2.7 is a substantial remedy for late payment of any sum payable under this Contract in accordance with Section 8(2) Late Payment of Commercial Debts (Interest) Xxx 0000.