Devaraj asked 10 months ago I am running a small scale industry . We are the manufacturer of home made chocolates . since i am very much new to this field, i approached tax and gst consultancy locate near vadapalani. It look like a decent company handling various types of small scale industry & MSME. They charged me 2000 initially and i paid them on monthly basis through online transaction. one of your customer conveyed me that the gst was not paid by us (ie: the tax consultancy people not paid the tax even a single month). When i enquired about gst payment they said one of our staff make a mistake involving in fraud & negligence activity and we dismissed that staff.Meanwhile when i enquired about penalty for not paying the tax , i have to pay 1.2 Lakhs instead of 12000 rupees. It is not our mistake.It was made by tax consultancy. The fraud was committed by the office people in the tax consultancy. For others negligence service aswell fraud why should i pay?Kindly suggest me a good legal remedy for this issue. If any advocates or legal consultant in this forum kindly answer.
Navigating GST Woes: Seeking Legal Solutions for Unpaid Taxes by Consultancy
Introduction:
Embarking on a journey as a small-scale industry, particularly in the realm of homemade chocolates, is a venture filled with enthusiasm and hope. However, for one entrepreneur, this journey took an unexpected turn when they discovered a grave error in the payment of GST by the tax consultancy they had entrusted. This article unfolds the unfortunate tale of a business owner facing the repercussions of a consultancy's negligence and fraudulent activities, seeking legal remedies to navigate the complexities.- Entrusting a Decent Consultancy: As a newcomer to the industry, the entrepreneur sought the assistance of a tax and GST consultancy near Vadapalani, believing it to be a reputable entity handling various small-scale industries and MSMEs.
- Unveiling the Shocking Discovery: A customer's revelation shattered the initial trust, indicating that the GST payments were not made as promised by the consultancy. The entrepreneur, now in the dark about their GST compliance, confronted the consultancy about the discrepancy.
- The Consultancy's Admission: Shockingly, the consultancy admitted to internal misconduct, attributing the oversight to the fraudulent activities of a dismissed staff member. The entrepreneur found themselves entangled in a web of negligence and fraud, raising questions about accountability.
- Bearing the Brunt of Penalties: To compound the issue, the entrepreneur discovered that the negligence of the consultancy led to a substantial penalty of 1.2 lakhs instead of the anticipated 12,000 rupees. The question arose – why should the entrepreneur bear the financial consequences of the consultancy's errors?
- Seeking Legal Recourse: Faced with an unjust financial burden, the entrepreneur is now on a quest for legal remedies. This involves exploring avenues to hold the consultancy accountable for both their negligence and the fraudulent activities that have adversely impacted the business.
Conclusion:
This cautionary tale serves as a reminder of the challenges small-scale industries may encounter in navigating the intricacies of tax and GST compliance. As the entrepreneur seeks legal counsel, the broader question arises: how can businesses protect themselves from the repercussions of consultancy negligence and misconduct?Read More
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