Legal Question in Credit and Debt Law in India

we have a problem of the government orders and our suppliers are waiting for their payment and they are asking for the payment ..we are asking them to wait and we will clear your payments and they are forcing us and they claims to file case against us what case they can file against us and how to stand against that case


Asked on 2/05/15, 12:33 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

05.02.2015

Dear Sir / Madam,

It is evident from your query that you are awaiting Government clarification on certain tax related issues, be it VAT or Service Tax or TDS that may be applicable, but that does not absolve you from honouring your commitment to pay off your suppliers, especially if their payments are overdue. Since it is obvious that your suppliers will sue you in the event of default, I strongly recommend that you pay off the suppliers if they have charged you the prevailing VAT or Service Tax rates & you deducting the prevailing TDS as applicable, at the prevailing rates in force to avoid legal hassles.

Regards,

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Answered on 2/05/15, 2:03 am


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