Dynadot

Sedo threatening legal action instead of providing documentation

Located in Legal Discussion started by anantj, Jul 10, 2018.

Replies:
16
Views:
876

  1. anantj

    anantj Active Member VIP

    Posts:
    4,052
    Likes Received:
    3,796
    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
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. forge

    forge cham on VIP

    Posts:
    4,010
    Likes Received:
    7,775
    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.
     
    Last edited: Jul 10, 2018
  3. anantj

    anantj Active Member VIP

    Posts:
    4,052
    Likes Received:
    3,796
    Not really. Not only is that in a legal gray area, it will incur additional tax of ~30% if everything is done above board.
     
  4. urljunky

    urljunky Active Member VIP

    Posts:
    1,605
    Likes Received:
    2,081
    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.
     
  5. forge

    forge cham on VIP

    Posts:
    4,010
    Likes Received:
    7,775
    Okay. I was afraid the tax implications (amongst other issues) might hinder that option (unfortunately).
     
  6. anantj

    anantj Active Member VIP

    Posts:
    4,052
    Likes Received:
    3,796
    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.
     
  7. mr-x

    mr-x Acme Domains Gold Account VIP ★★★★★★★★★★

    Posts:
    7,916
    Likes Received:
    7,706
    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.
     
  8. anantj

    anantj Active Member VIP

    Posts:
    4,052
    Likes Received:
    3,796
    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
     
  9. gilescoley

    gilescoley Top Member PRO VIP ★★★★★★★★★★

    Posts:
    11,427
    Likes Received:
    10,546
    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:
     
  10. creataweb

    creataweb Top Member VIP ★★★★★★★★★★

    Posts:
    5,191
    Likes Received:
    5,880
    Sedo won't be pursuing you. Good luck with the whole thing either way.
     
  11. forge

    forge cham on VIP

    Posts:
    4,010
    Likes Received:
    7,775
    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
     
  12. frank-germany

    frank-germany F1lter.com xpired domain search engine Gold Account VIP

    Posts:
    5,667
    Likes Received:
    6,251

    no worries
    nothing will happen
     
  13. anantj

    anantj Active Member VIP

    Posts:
    4,052
    Likes Received:
    3,796
    Yes this was in the "Transfer Center" and not over a phone or e-mail.

    Thanks
     
  14. Crysis

    Crysis Established Member

    Posts:
    537
    Likes Received:
    1,731
    Last edited: Aug 9, 2018
  15. cillx

    cillx Established Member

    Posts:
    196
    Likes Received:
    269
    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!
     
  16. Furquah

    Furquah The Captain VIP

    Posts:
    2,592
    Likes Received:
    1,634
    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.
     
  17. anantj

    anantj Active Member VIP

    Posts:
    4,052
    Likes Received:
    3,796
    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!
     

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!

Share This Page

Lysted
  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...