# Can our company establish penalties or service credits for contractually defined failures?

**Short answer:** Yes, if you ask: written into the contract with clear definitions.

Yes, if your company asks for them. Shiv Shakti Tours & Travels can include penalties or service credits in the contract for failures you define, such as a missed pickup or a vehicle that does not report. The contract spells out what counts as a failure, how it is measured from GPS records, the amount or credit, and the corrective steps that come first when a problem repeats.

- Source page: https://www.shivshaktitoursandtravels.in/answers/corporate-accounts/penalties-and-service-credits/
- Answered by: Vaibhaviba Bhavsinh Solanki, owner of Shiv Shakti Tours & Travels
- Last checked: 10 October 2026
- Book or ask: call or WhatsApp +91 99745 30788 (24/7)

## Key facts: penalties and credits

| Fact | Value |
|---|---|
| Available | If the company asks, in the contract |
| What counts | Failures defined in the contract |
| Measurement | GPS reporting times and trip records |
| Remedy | Penalty or service credit, as agreed |
| Amounts | Agreed per contract; none published |
| Repeated failures | Corrective plan, review, then the agreed remedy |
| Exclusions | Agreed causes outside our control, such as road closures |
| Shown on | The monthly report and invoice |

## What failures are usually defined?

The ones that hurt a shift. Keep the list short and measurable so both sides read the report the same way.

| Failure | How it is measured |
|---|---|
| Missed pickup | No vehicle at a scheduled pickup |
| Late reporting | GPS time at the first pickup after the agreed time plus any grace period |
| Vehicle not supplied | Agreed vehicle missing from a scheduled run |
| Wrong vehicle type | A smaller vehicle sent without agreement |

## How are repeated failures handled?

First, a corrective plan for the route: a different driver, an earlier start or a resized vehicle. If the problem continues, it is taken up at the review meeting, and the agreed penalty or credit applies as the contract says.

See repeated delays and corrective action (https://www.shivshaktitoursandtravels.in/answers/safety-and-tracking/repeated-delays-and-corrective-action/).

## What makes these terms work?

Clear definitions, a grace period that suits your roads, and agreed exclusions such as road closures or plant gate delays. That way the penalties track real failures, not bad luck.

See the service-level agreement (https://www.shivshaktitoursandtravels.in/answers/corporate-accounts/service-level-agreement/).

## Follow-up questions

**Can we set penalties for missed pickups?** Yes, if you want them in the contract.

**How do you handle repeated failure to meet agreed standards?** A corrective plan, then a review, then the agreed remedy.

**Are penalties standard in your contracts?** No, they are added when a company asks.

**How are failures proved?** From GPS records and trip logs.

## About this answer

Shiv Shakti Tours & Travels is a GST- and MSME-registered taxi and car rental company in business since 2018, rated 4.9 on Google. Branch: Hansalpur Circle, Becharaji, near the SMG (Maruti Suzuki) plant, Gujarat 384210. Head office: B-50, First Floor, Jay Bhanu Society, Gate No. 2, Ghatlodiya, Ahmedabad 380061. Open 24/7 on +91 99745 30788. Not connected with other businesses of the same name elsewhere in India.

Sources: Penalties or service credits included when a company asks confirmed by the owner on 9 October 2026.