Regulatory Guidelines Mandate Minimum Fee Thresholds and Cost Sheets for Tenders

1. Core Facts & Background

• New regulatory guidelines were issued governing practicing professionals responding to tenders floated by diverse organizations for professional engagements.
• The guidelines establish strict parameters regarding minimum fee structures for services exclusively reserved under governing statutes.
• The regulatory measure aims to curb predatory and unviable pricing while ensuring that fees remain commensurate with work scope and quality.
• The directive applies generally to public tenders while setting distinct compliance criteria for statutory versus non-statutory assignments.

2. Revenue / Department’s Action

• The department prohibited professionals from responding to tender documents that fail to stipulate a minimum fee for reserved services.
• The department mandated that quoted fees must strictly equal or exceed the prescribed minimum professional or estimated fees.
• The department barred participation in reverse bidding platforms whenever price discovery falls below stipulated minimum fee thresholds.
• The department reserved explicit authority to requisition detailed costing records and engagement estimates for any bid submitted.

3. Assessee’s Defense & Arguments

• The assessee maintained entitlement to bid without minimum fee constraints when tenders relate to services not exclusively reserved by statute.
• The assessee contended that tenders open to non-certified general participants fall outside the mandatory minimum fee prerequisites.
• The assessee highlighted that direct quotation requests solicited individually from specific firms remain exempt from broad tender restrictions.
• The assessee defended bid valuations on the basis of internal cost sheets capturing projected man-hours and requisite staffing overheads.

4. Final Ruling & Outcome

• Professionals are strictly restrained from undercutting baseline remuneration or participating in unreserved price-dropping reverse auctions for reserved assignments.
• Maintaining verifiable cost sheets detailing estimated hours and staff deployment is mandatory and subject to regulatory inspection.
• Permitted tenders for unreserved services remain operational, provided overall pricing reflects the volume, value, and technical nature of the work.