Liability of firms

Notwithstanding anything contained in the Indian Partnership Act, 1932, or any contract to the contrary, where any firm is liable to pay tax under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment:

Provided that, where any such partner retires from the firm, he shall intimate the date of his retirement within 60 days thereof to the Commissioner by a notice in that behalf in writing and he shall be liable to pay tax (including any interest, amount forfeited and penalty) remaining unpaid at the time of his retirement and any tax (including any interest, amount forfeited and penalty) due upto the date of his retirement. He shall be also liable to pay interest upto the date of payment of such tax:

Provided further that, if no such intimation is given within 60 days from the date of retirement, the retiring partner shall continue to be jointly and severally liable to pay tax (including any interest, amount forfeited and penalty) in respect of all the sales and purchases effected after the date of retirement till the day such intimation is received by the Commissioner, as if the retiring partner had not retired.