Tax payable on transfer of business etc

Tax payable on transfer of business etc.-

1. (1) When the ownership of the business of a 1[proprietor or stockist]1 liable to pay tax or penalty or any other amount under this Act is transfered and the transferor and the transferee shall jointly and severally be liable to pay tax or penalty or any other amount under this Act in respect of such business which remains unpaid at the time of transfer and for the purpose of recovery from the transferee, such transferee shall be deemed to be the 1[proprietor or stockist] 1 liable to pay the tax or penalty or other amount under this Act.
2. (2) Where a 1[proprietor or stockist]1 dies, his executor, administrator or other legal representative shall be deemed to be the 1[proprietor or stockist]1 for the purpose of this Act and the provisions of this Act shall apply to him in respect of the business of the deceased 1[proprietor or stockist]1 : Provided that, in respect of any tax or penalty assessed as payable by any such 1[proprietor or stockist]1 or any tax or penalty which would have been payable by him under this Act, if he had not died, the executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hands.
3. (3) When an undivided Hindu family or Aliya Santhana family liable to pay tax or penalty is partitioned, the assessment of the tax and the imposition of the penalty shall be made as if no partition of the family has taken place, and every person who was a member of the family before the partition shall be jointly and severally liable to pay the tax or penalty assessed or imposed.]1

¹ Substituted by Act 7 of 1997 w.e.f. 1.4.1997.

¹ Substituted by Act 7 of 1997 w.e.f. 1.4.1997.

¹ Substituted by Act 7 of 1997 w.e.f. 1.4.1997.