Regarding default after filing 26QB

TDS 543 views 4 replies
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5 Points Joined August 2024

Hi Team,

We filed form 26QB and made the payment as per 1% TDS calculation. We didn't receive any error while submitting 26QB. After a few days we received the demand (20%) against one of the seller. Later we came to know that the seller's Aadhar and Pan was not linked and that was the reason for demand.

We informed the seller and he got Aadhar and Pan linked but he is not willing to pay that additional amount, even though we told him that he will get it back while filing the ITR. 

We already completed the registration process, what action I can take in such scenario. Please advise 🙏

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On 13 August 2024 at 19:13 Report
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Master in Accounts & high court Advocate
9447 Points Joined December 2011

If the seller is not paying the demand tax after submission of Form 26QB, you can take the following steps: 1. _Communicate with the seller_: Reach out to the seller and request payment of the demand tax. 2. _Issue a notice_: Send a formal notice to the seller, mentioning the demand tax amount and the consequences of non-payment. 3. _File a complaint_: If the seller still doesn't pay, you can file a complaint with the tax authorities (Income Tax Department) or the relevant legal authorities. 4. _Initiate recovery proceedings_: The tax authorities can initiate recovery proceedings against the seller to recover the demand tax amount. 5. _Withhold payments_: If you have any outstanding payments to the seller, you can withhold them until the demand tax is paid. 6. _Seek legal advice_: Consult a legal expert to explore other available options and ensure you're following the correct procedures. Remember to keep records of all communications and notices sent to the seller, as they may be required during any future proceedings. Additionally, you can also: - _Check the seller's credentials_: Verify the seller's credentials and ensure they are compliant with tax regulations. - _Report to the authorities_: If you suspect any fraudulent activities or tax evasion by the seller, report it to the tax authorities.

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On 14 August 2024 at 13:16
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5 Points Joined August 2024

Thanks you sir for your detailed response 🙏. By any chance you or your team provide legal assistance or services in this regard?

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On 23 August 2024 at 21:03
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5 Points Joined August 2024

What if we don't share the TDS certificate with the sellers and ask them to pay only then we will share..Is that a possibility?

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On 24 August 2024 at 18:07
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Master in Accounts & high court Advocate
9447 Points Joined December 2011

That's an interesting question! While it's technically possible to withhold the TDS certificate until the sellers pay, it's not a recommended approach. Here's why: 1. _Legal compliance_: Withholding the TDS certificate may violate tax laws and regulations. 2. _Seller's rights_: Sellers have the right to receive the TDS certificate, which serves as proof of tax deduction. 3. _Payment delay_: Withholding the certificate may lead to payment delays, as sellers may refuse to pay without the certificate. 4. _Damage to relationships_: This approach may damage your relationship with the sellers, potentially leading to disputes and legal issues. Instead, consider the following: 1. _Issue TDS certificate_: Provide the TDS certificate to the sellers promptly, as required by law. 2. _Payment terms_: Negotiate payment terms that work for both parties, ensuring timely payment. 3. _Trust and cooperation_: Foster a collaborative relationship with sellers, built on trust and cooperation. Remember, it's essential to prioritize legal compliance, maintain good relationships, and ensure a smooth transaction process.

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On 24 August 2024 at 21:49


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