NRI not willing to pay TDS. Can buyer cancel agreement and ask refund?
1 year ago
I did an agreement to sale with NRI as per which paid 25% amount as down payment to NRI's NRO account and PoA had assured that he will take care of all tax implications. The rest 75% is from bank loan and it shall be credited directly to Buyer's account. But after breaching 45 days; PoA says that they are not interested in paying the TDS at all. I orally requested for a refund and cancellation of agreement. But seller wants to apply for Nil/Low TDS certificate now after 45 days. But I believe that Nil/Low TDS certificate tax rate will be valid only on the transactions performed during the validity period; any transactions performed before or after the validity are still taxed at normal applicable rates. So, I demanded to return the 23% TDS amount from the initial down-payment so that I can pay the TDS amount at least for that transaction. However the seller is reluctant to refund me and is not allowing me to make TDS payment. Can I cancel the agreement to sale now and ask full refund?
Yes the buyer has the exclusive right to terminate/cancel the agreement, once the seller does a breach of contact.
A legal notice through an advocate must be send.
Thanks and Regards.
Simi Paul
Yes the buyer can cancel the agreement to sell and get refund his amount paid to the vendor. It is the bounden duty of NRI to pay TDS by himself.
Subhashis Paul
Responded 1 year ago