Payment not received from customer
Isha
(Querist) 25 September 2016
This query is : Resolved
We are a small firm who provide recruitment services to candidates and charges 15 days salary from candidates. We communicate everything to candidate before hand, record their calls, candidates fills in online form and accepts terms and conditions and then gets placed. If a candidate is not paying charges due to not getting invoice , can he/she be sued? As we communicative the amount to be paid on phone call and over email and dont sent any particular invoice as we dont pay Service tax due to less than 10 lakh turnover. Please confirm if a candidate can deny payment just because of not getting an official invoice although we have sent the details over phone call and courier and email.
Please confirm.
Ms.Usha Kapoor
(Expert) 25 September 2016
You file a civil suit for recovery of amount due from the candidates after issuing due legal notice to them.
Kumar Doab
(Expert) 25 September 2016
Does your turnover < 10Lacs prohibit you or entitles you to declined to submit bill?
If yes quote the clause/rule/law in writing and close the matter.
The person whom you want to sue has not denied the payment.
You have denied to raise,issue, supply the bill.
Raj Kumar Makkad
(Expert) 25 September 2016
A your terms and conditions are in writing and the candidates wilfully accept it then the same becomes a contract and on its violation by any of the parties, consequences shall follow means you can file civil suit for recovery.
Rajendra K Goyal
(Expert) 25 September 2016
Raise bill, if not cleared, send registered notice.
Civil suit for recovery is to be filed if not recovered.
Kumar Doab
(Expert) 25 September 2016
You may have to answer the questions even in court of law; Did you raise,issue bill?
Why are you not in favor of raising the bill?
Are you registered and corporate?
Isha
(Querist) 25 September 2016
Yes, We are registered. We communicated the amount to be paid over email.
We did not raised bill as i was not sure if we can charge service tax if we are not paying the same due to less than 10 lakh turnover.
Raj Kumar Makkad
(Expert) 25 September 2016
Your demand online is not inferior than a bill and the same carries equal value in the eyes of law.
Guest
(Expert) 26 September 2016
Ms. Isha,
Tax evaders have no right to ask for charity based advice on their illegal acts or academic query (that is for sure).
There is not only a question of service tax, but also evasion of income tax also on your part for unaccounted income.
You should understand the basic thing that if you intend to charge for your service, the candidates have the right to get bill for the charge as well as recept of the amount paid to you.
Isha
(Querist) 26 September 2016
Thanks everyone for your response.
Dhingra Sir, Please note that we are following all the norms related to taxes. Its just since our turnover is not more than 10 lakh, we are not liable to pay service tax and that is the reason we are not charging the same from candidates whom we are recruiting.
Otherwise all our accounts are clean and can be audited any time.
Also we did informed this candidate over email multiple times.
Raj Kumar Makkad
(Expert) 26 September 2016
If you are following all rules then I shall not term you as tax-evader.
Guest
(Expert) 26 September 2016
Ms. Isha,
Don't try to be evasive. Your question was not on the aspect of tax, but about your claim of charges for service to the job seekers without issuing any invoice.
Non-issue of invoice clearly denotes intention to evade Income Tax, may be not that be for the purpose of service tax.
If you are following all the norms related to tax, what is the specific reason for not issuing invoice and receipt for charges you claim without billing?
Would you like to clarify on that aspect?
Isha
(Querist) 26 September 2016
Sir,
I am not trying to be evasive. Its just that we are a just two years old company and we are in the process of learning. I just wanted to know that a official invoice is mandatory if we have already communicated the amount to be paid over call and emails.
If a candidate know that he/she is due with charges, the person is just trying to delay the process with one or the other requests like these.
Getting an invoice on company letter head will not take much time.
Thanks for your guidance.
Guest
(Expert) 26 September 2016
If you want to sue some one, formally recognisable evidence, particularly for claiming any sum of amount, is a must for legal trial.
Isha
(Querist) 26 September 2016
This helps. Thankyou Sir. :)
Isha
(Querist) 26 September 2016
ANd Thank you to all the respected lawyers for responding.
Sincerely yours,
Isha
Guest
(Expert) 26 September 2016
You are welcome, but only with genuine problems for solution.
Rajendra K Goyal
(Expert) 26 September 2016
Not issuing bill / invoice can also be a method to remain below the threshold limit fixed by the taxation authority.
Raj Kumar Makkad
(Expert) 26 September 2016
You being in business are required to follow correct procedure of accounting which also includes the method to calculate the liability of taxation.
Isha
(Querist) 26 September 2016
Yes, I only raised the concern as i know I am correct in doing things. Its just that i am learning with the passage of time.
Thanks again
Rajendra K Goyal
(Expert) 26 September 2016
Not issuing bill / invoice is not the correct accounting / not a legal procedure / not good professional approach / may land in trouble at any time.
Isha
(Querist) 26 September 2016
Thank you Rajendra Ji.
Guest
(Expert) 26 September 2016
Would you have known you are correct in doing things, you would not have felt the need to raise such an unwarranted query.
Isha
(Querist) 26 September 2016
Dhingra Sir,
I have very less knowledge and learning from people like you. I was not sure and that is why raised query to confirm. There is not better way to consult other than talking to talented group of lawyers.
But I feel that you are taking my query and comments in wrong manner.
Apologies if i said anything wrong.
Regards
Guest
(Expert) 26 September 2016
Ms. Isha,
Never mind. You may assume anything about me, if you think I have taken your query and comments in wrong manner, instead of taking my opinion, as a caution for you, that too when you admit that you have very less knowledge.
I don't assume anything unless there is any strong reason behind that.
Anyway, you may feel pleasure with your own assumption. But for me I have not tried to mislead you when I have stateforwardly expressed my opinion, which can be true for unaccounted income.
However, if not satisfied with my caution for you, you may proceed further to sue the candidates and have the taste of cross-examination by his lawyer and further if the candidate in consultation with his lawyer informs the IT department about the instances of your unearned income.
BUT IT IS CERTAIN THAT YOU WON'T GET THE EXCACT SOLUTION TO YOUR ACADEMIC QUERY, WHICH I CAN GUESS.
Kumar Doab
(Expert) 26 September 2016
It is reiterated that you may issue Bill and send payment acknowledgment and remain clean as you have cited.
Retain a very able counsel to advise you for your establishment matters.
It shall be worth it.
Raj Kumar Makkad
(Expert) 27 September 2016
Every person is a learner including all of us. it is said that lawyers are life long student. We even learn from queriests.
Kumar Doab
(Expert) 27 September 2016
What is to be learnt by author that initiated this query in this thread and all experts that participated in the thread and all readers that have read and shall read in the times to come;
'Issue and supply the bill and acknowledgment of payment'
Or
'Not to Issue and supply the bill and acknowledgment of payment'
Maintain books of bills and payments and expenses and payouts on fees/taxes etc etc .
