Deficiency in service by builder/consumer court
Tom
(Querist) 06 June 2016
This query is : Resolved
Husband & Wife jointly purchase under-construction property from a very reputed builder in Bre.The purchase entails Buyers to deduct 1 % TDS from the sale value. As per IT rules, TDS on the payments have to be remitted by each of the joint buyers for 50 % of the installment value. The builder got us to sign in the purchase agreement that he will file the TDS on our behalf,to help us ostensibly, but actually to get his TDS credit on time with out any mistakes! This is a usual practice followed by big time builders. Unfortunately he deducted full TDS from the 1st named buyer only, with out consulting us,may be for his covenience. This is clearly against IT rules in force,although full money due to govt has been remitted. Correcting this mistake is a huge task and we will be required to pay heavy penalty and running around.Builder refuses to help claiming that the buyers alone are responsible for TDS filing and he did it only to help us and that he can not be held responsible for the mistake of his staff. If the mistake is not corrected,ITOs are going to discover it when we file our IT returns,issue us notices and harass us. Can we haul the builder in front of Consumer Court for this mistake and insist that he gets it corrected at his expenses ?
Devajyoti Barman
(Expert) 06 June 2016
Yes, you can bring this dispute for adjudication to the consumer forum/
However seeing the refund you have already got I do not find you would get much relief from the Forum.
Tom
(Querist) 07 June 2016
@Expert Barman Sir ! No refund or such thing, did I clearly explain the issue ? The builder got his full TDS credit, while incorrectly filing the TDS on our behalf, exposing us to harassment by Income Tax dept in future !
N R Dash..
(Expert) 07 June 2016
As you are the buyer, TDS deduction & related filings were to be done by you only. The builder can not be held responsible for the same. You may file revised returns. Consult local tax consultant to do the same for you.
Tom
(Querist) 07 June 2016
@Expert NR Dash ! You are right there Sir,but having taken on the task of filing TDS on our behalf,was he not expected to follow IT rules in force ! Should he not file the revised returns now ? Can we force him to do that through Consumer Forum ?
Kumar Doab
(Expert) 07 June 2016
Meet the ITO in person and ask for his advise and opinion.
Or seek advise from your I.Tax lawyer.
Let the builder error and pull him for his errors.
You don't err.
Rajendra K Goyal
(Expert) 08 June 2016
Discuss with local tax lawyer / CA. TDS and form 26AS can be revised in certain conditions in case of mistake.
Tom
(Querist) 15 June 2016
@ Experts Mr RK Goyal & Adv T Kalaiselvan ! Agree there sirs,but it is going to cost me lot of expenditures by way of penalty, fine, interest etc.That is why I thought of hauling up the builder in front of consumer court.Do I have a case for making him liable ?
Rajendra K Goyal
(Expert) 02 July 2016
Discuss with local tax consultant to revise form 26QB through TRACES if it belong to previous / current financial year. Tax has been remitted to the department but deductor name has to be revised partially.
T. Kalaiselvan, Advocate
(Expert) 10 June 2016
