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Sedo threatening legal action instead of providing documentation

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anantj

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I recently won an auction on Sedo. For this discussion's sake, an amount greater than $5000 so payment via a CC is not an option. This will be the first time that I'll be sending a wire transfer for such a large amount. Also for context, I'm based out of India where banking laws are quite strict, especially for individuals and consumers.

To process this transaction, my bank and accountant asked me for some documentation to establish which tax laws are applicable for such a transaction. Specifically, if Sedo is domiciled or has a presence in India, then there are certain tax implications that I need to follow and if not, they are not applicable. Additionally, to comply with AML requirements, the bank needs a tax residency certificate.

I requested the relevant documents from Sedo but the transfer agent simply responded with a refusal to provide the same and in the same sentence also threatened legal action if I do not complete the payment. I'm not sure what I can do in this situation as I obviously need to comply with the laws in my country and I definitely want to proceed with the transaction. But refusing to enable me to complete the transaction and also threatening me with legal action has put in in a catch-22 situation. Any suggestions on how to deal with this and advice on completing this transaction would be hugely appreciated.

Thank you
 
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Can you not get a trusted friend or associate to help you complete this transaction? Say, someone from outside India?

It really does sound unreasonable on the part of Sedo.
 
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Can you not get a trusted friend or associate to help you complete this transaction? Say, someone from outside India?

It really does sound unreasonable on the part of Sedo.

Not really. Not only is that in a legal gray area, it will incur additional tax of ~30% if everything is done above board.
 
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This isn't the first transaction they have done in India. If they do business in India they should know what documentation needs to be presented to meet all legal obligations in your country.
This being said they should provide it.
I have had money wired to me from India and didn't have any problems.
 
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Not really. Not only is that in a legal gray area, it will incur additional tax of ~30% if everything is done above board.
Okay. I was afraid the tax implications (amongst other issues) might hinder that option (unfortunately).
 
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This isn't the first transaction they have done in India. If they do business in India they should know what documentation needs to be presented to meet all legal obligations in your country.
This being said they should provide it.
I have had money wired to me from India and didn't have any problems.
Although I'm not sure how it was previously (This is my first time), it is possible regulations have recently changed. I'm still trying to find out more information but there isn't a lot of if available. A few other folks I spoke to indicated they handle such payments differently but those different mechanisms aren't available to me (see my previous comment). Agreed, they should provide the information as I'm not asking for proprietary information.
 
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I recently won an auction on Sedo. For this discussion's sake, an amount greater than $5000 so payment via a CC is not an option. This will be the first time that I'll be sending a wire transfer for such a large amount. Also for context, I'm based out of India where banking laws are quite strict, especially for individuals and consumers.

To process this transaction, my bank and accountant asked me for some documentation to establish which tax laws are applicable for such a transaction. Specifically, if Sedo is domiciled or has a presence in India, then there are certain tax implications that I need to follow and if not, they are not applicable. Additionally, to comply with AML requirements, the bank needs a tax residency certificate.

I requested the relevant documents from Sedo but the transfer agent simply responded with a refusal to provide the same and in the same sentence also threatened legal action if I do not complete the payment. I'm not sure what I can do in this situation as I obviously need to comply with the laws in my country and I definitely want to proceed with the transaction. But refusing to enable me to complete the transaction and also threatening me with legal action has put in in a catch-22 situation. Any suggestions on how to deal with this and advice on completing this transaction would be hugely appreciated.

Thank you

SEDO's threats of legal action are hollow. You're transfer specialist is inexperienced, demand they make your requirement known to their manager. Or just pick up the phone and call.
 
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SEDO's threats of legal action are hollow. You're transfer specialist is inexperienced, demand they make your requirement known to their manager. Or just pick up the phone and call.
Good idea. I'll call them later today once they're likely in office. I've also reached out to the seller's broker (from Sedo) who will, hopefully, be more helpful
 
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If these are the laws in India, just tell Sedo this is what is going to happen. If they threaten legal action because of this, I would just say "Go Ahead Sedo" :xf.smile:
 
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Sedo won't be pursuing you. Good luck with the whole thing either way.
 
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but the transfer agent simply responded with a refusal to provide the same and in the same sentence also threatened legal action if I do not complete the payment.
Was this said in the Transfer update pane? For some reason I was thinking phone. But it strikes me as being just the usual cut & paste drivel that a "transfer agent" might post.

In which case, you do need to talk by phone in order to straighten this out. IMO
 
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and in the same sentence also threatened legal action if I do not complete the payment.


no worries
nothing will happen
 
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Was this said in the Transfer update pane? For some reason I was thinking phone. But it strikes me as being just the usual cut & paste drivel that a "transfer agent" might post.

In which case, you do need to talk by phone in order to straighten this out. IMO
Yes this was in the "Transfer Center" and not over a phone or e-mail.

Thanks
 
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I'm from Sri Lanka. I had to face similar problem when i tried to pay for my first $3000 domain acquisition via namejet. Namejet didn't threaten me but my bank refuse to pay by wire transfer.

They demand me to provide tax clearance letter from inland revenue. When i went to my bank for the first time i didn't know that i need to provide them a reason for my payment (invoice) and also they didn't understand what is a domain name (They thought is a product and it's shipped to sri lanka after i made the payment.) so they refused my request. At that time i was very frustrated but decided to try another bank instead of going to inland revenue.

I went to another bank this time well prepared with color printed invoice and good explanation what is a domain name. They also requested tax clearance letter and refused my request. So i tried fourth and fifth bank, they also rejected my request.

This time i decided to try innovative, relatively young, small bank instead of much large, old, well established bank. I found a bank and i was able to convince the young boy who had some idea about domain names. He didn't ask for tax clearance letter and accepted namejet invoice as a reason for the payment. So i made the payment without tax clearance letter!
 
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I'm from Sri Lanka. I had to face similar problem when i tried to pay for my first $3000 domain acquisition via namejet. Namejet didn't threaten me but my bank refuse to pay by wire transfer.

They demand me to provide tax clearance letter from inland revenue. When i went to my bank for the first time i didn't know that i need to provide them a reason for my payment (invoice) and also they didn't understand what is a domain name (They thought is a product and it's shipped to sri lanka after i made the payment.) so they refused my request. At that time i was very frustrated but decided to try another bank instead of going to inland revenue.

I went to another bank this time well prepared with color printed invoice and good explanation what is a domain name. They also requested tax clearance letter and refused my request. So i tried fourth and fifth bank, they also rejected my request.

This time i decided to try innovative, relatively young, small bank instead of much large, old, well established bank. I found a bank and i was able to convince the young boy who had some idea about domain names. He didn't ask for tax clearance letter and accepted namejet invoice as a reason for the payment. So i made the payment without tax clearance letter!
Well, This type of Bank called here as "co operative bank" but I don't think any of them allow @anantj to do overseas transaction.
 
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The transaction was abandoned as Sedo completely refused to provide any documentation at all. I sought help from the country manager for India (Sedo) and he canceled the txn without any penalty on me!
 
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