LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

TCS Liability u/s 206c (1F)

Nishant Dua (Tax and Licensing consultant) (1 Points)

23 April 2023

I purchased a car in Q3 of current FY, the seller was liable to charge 1% TCS on total sales consideration since the amount was more than INR 10L.

I paid INR 43L by cheque and an addition 43K was charged for TCS. Even though I happily paid, there was breach of trust and the seller didn't deposit TCS Even in Q4. The seller refuses to pick my calls or messages, neither is ready to refund the amount.

Since the amount is not reflected in 26AS or AIS, what legal remedies do I have. Is section 205 of IT Act applicable under this circumstance. I concluded that section 205 is applicable to various sub sections of section 194.

Reply
Follow
Share

3 Replies

CA Raj Doshi (Practising CA) (8735 Points)
Replied 23 April 2023

Submit complaint to jurisdictional TDS office. There would be many people whose money he would have duped.

ashish (ca) (82 Points)
Replied 23 April 2023

In this situation, you can take the following actions:

File a complaint with the income tax department: You can file a complaint with the income tax department against the seller for non-deposit of TCS. You will need to provide the details of the transaction, including the amount paid, TCS amount charged, and the seller's details. The income tax department will investigate the matter and take appropriate action.

Send a legal notice: You can send a legal notice to the seller demanding the refund of the TCS amount. If the seller fails to respond or comply with the legal notice, you can file a case in the court of law.Approach consumer court: If the seller has breached the terms of the sale agreement, you can approach the consumer court to seek compensation for the damages caused to you.

Seek legal advice: It is recommended to consult a lawyer or a legal expert to understand your legal rights and the course of action you can take in this situation.

It is important to keep all the documents related to the transaction, including the sale agreement, payment receipt, and TCS payment proof , as evidence to support your case.

CA Sorav Gupta (Chartered Accountant) (1000 Points)
Replied 24 April 2023

If the seller has not deposited the TCS then you are neither responsible nor liable for that amount. You can reduce your income tax liability by that amount.

However, you will receive demand u/s 143(1). File an appeal against that demand and prove to the CIT that the amount has been paid by you. In that case, the recovery will be made from the dealer and not from the assessee.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)

4 Like