Liability of directors of private company.

Tax2017178 sections

Statutory text

(1) Notwithstanding anything contained in the Companies Act, 2013, (18 of 2013) where any tax, interest or penalty due from a private company in respect of any supply of goods or services or both for any period can not be recovered, then, every person who was a director of the private company during such period shall, jointly and severally, be liable for the payment of such tax, interest or penalty unless he proves that the non- recovery can not be attributed to any gross neglect, mis-feasance or breach of duty on his part in relation to the affairs of the company.
(2) Where a private company is converted into a public company and the tax, interest or penalty in respect of any supply of goods or services or both for any period during which such company was a private company can not be recovered before such conversion, then, nothing contained in sub-section (1) shall apply to any person who was a director of such private company in relation to any tax, interest or penalty in respect of such supply of goods or services or both of such private company : Provided that nothing contained in this sub-section shall apply to any personal penalty imposed on such director.

Study data processing for this section.

PDF: pending for this language.