|Guideline notes on taking
over consultancy project
A consultancy project/task/work is one where faculty
and research staff (Principal Investigator) provides
knowledge and intellectual knowledge to industry
(within India/outside India), primarily for their
It is expected that a good portion of effort spent
by the consulting faculty/staff will be in the sponsoring
organization, though some part of the consultancy
work may be done while being in the Institute. Earlier,
there was a condition for consultancy earnings.
Now, the limits are relaxed but the message here
is that consultancy could very well interfere with
research and teaching; but checks and balances are
It is desirable that payments for consultancy be
routed through the Institute. This means, that whenever
payments are done, they should come in the name
of the Institute, which will then do the needful
for complying with statutory laws and then give
the honorarium to the faculty/staff as the case
The requirement originates from the industry concerned.
The faculty is expected to estimate the time and
cost required to accomplish the task.
Preparation and submission of the proposal: In case
of a consultancy project, normally based on the
requirement, proposal is prepared by the Principal
Investigator. It should specifically mention breakage
of funds, normally consultancy fee as the primary
component. It may also have budget for supporting
manpower, equipment, travel contingency and other
such costs to execute the consultancy project.
and service tax: Please refer Guideline XV Section
At the stage of proposal submission, the budget
will reflect project costs (X), 25% overheads (0.25X)
and service tax (10.3% of 1.25X).
Service tax is subject to periodic revision by the
Government of India.
Service tax is not deducted on projects funded by
agencies outside India and funds are received in
Service tax on equipment is not chargeable, in case
equipment is to be returned to the funding agency/organization
after completion of the project. This should be
clearly spelt out in the MoU/proposal itself.
In international project:
o Funds are received in foreign currency;
o Service tax is not applicable;
o The research collaboration of IITK with the other
party/funding agency should be in conformity with
the laws of both the Countries and/or International
laws as the case may be.
proposal should be submitted to the Dean: Research
& Development (after getting it forwarded by
the HOD/Head of the Center) for signature. Forwarding
is required to ensure that sufficient resources
are available, and the project can be executed.
Endorsement cum letter of forwarding for the project
proposal is printed on the letter head and is signed
by the Dean: Research & Development. Project
proposal is attached as an annexure to the letter
IPR issue: All IPR related issues are agreed between
the Institute and the funding agency. Preferably,
IPR will be jointly shared by IIT Kanpur and the
funding agency. For Board approved IPR policy of
the Institute, please
MoU/ agreement preparation: Institute has Board
approved guidelines for drafting MoU/Agreement
Some template/model MoUs of different types are
available at: http://web.iitk.ac.in/dord/mou/.
When MoU is clear from all angles and acceptable
to both the parties, it is sent to the Director,
IITK for approval along with the Note File (summery
approval, PI/HOD/DORD/DD/Director as the case may
be along with witness sign the MoU.
Project responsibility: These projects are headed
by a Principal Investigator (PI), and should have
Co-Principal Investigators (co-PIs)/administrative
PI (to operate the project, in case PI is out of
station) and the deliverables are the responsibility
of the PIs. The Institute provides the PIs necessary
completion of the project, final report should be
submitted to the funding agency, a copy of which
is given to the Dean’s office for records.
completion certificate should be obtained from the
funding agency for successful completion of the
project based on which project account will be closed.
surplus amount in the project account may be transferred
to R&D account/PDA/DPA as the case may be.