Seeking Advice on Outstanding Debt and Tax Relief for SME Business

[Indianshark2912]

I

Indianshark2912
PARTICIPANT
February 17, 2025 at 12:57 pm

I run a small-to-medium enterprise (SME) that operates as a mobile wholesaler (let’s call it Business A). Over the last financial year, another business (Business B) purchased goods worth over ₹5 crore from us. However, Business B shut down unexpectedly and ran away with an outstanding debt of ₹1.5 crore+ owed to us. I’m left in a tough spot and have two pressing questions:

1.Legal Action for Recovery: What legal steps can I take to recover the outstanding ₹1.5 crore+ from Business B? Are there specific legal remedies or processes I should follow to maximize the chances of recovering this amount?

2. Tax Relief for Loss: Since this is a significant loss for my business, will I be eligible for any tax relief or deductions when filing my taxes for the financial year? If so, how should I account for this loss in my tax filings?

Any advice, insights, or experiences from those who’ve dealt with similar situations would be greatly appreciated. Thanks in advance!

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[Quickfalcon1344]

Q

Quickfalcon1344
PARTICIPANT
February 17, 2025 at 5:26 pm

Suit for recovery before the court and attachments of property of business B to recover your money

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[Ashishmaster940]

A

Ashishmaster940
PARTICIPANT
February 17, 2025 at 6:33 pm

1. FIR, recovery or summary suit.

2. Yes, get a good CA.

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