Chapter III LIABILITY IN SPECIAL CASES

Tax2003117 sections12 chapters

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21. Liability to pay in case of death

Statutory text

(1) Where a dealer, liable to pay tax under the Act, dies then:- (a)If the business carried on by dealer is continued after his death by his legal representative or any other person, such legal representative or other person shall be liable to pay tax including any penalty, sum forfeited and interest due from such dealer under this Act or under any earlier law, in the like manner and to the same extent as the decreased dealer, and (b)If the business carried on by the dealer is discontinued whether before or after his death, his legal representative shall be liable to pay out of the estate of the decreased, in the like manner and to the same extent as the decreased dealer would have been liable to pay if he had died, the tax including any penalty, sum forfeited and interest due from such dealer under this Act, or under any earlier law, whether such tax including any penalty, sum forfeited and interest has been assessed before his death but has remained unpaid, or is assessed after his death. (2)Where a dealer, liable to pay tax under this Act, is a Hindu Undivided family and the joint family property is partitioned amongst the members or group of members, then each member or group of members shall jointly and severally liable to pay the tax including and penalty, sum forfeited and interest due from the dealer under this Act or under any earlier lay up to the time of the partition, whether such tax including and penalty sum forfeited and partition. (3)Where a dealer liable to pay tax under this Act, is a firm, and the firm is dissolved, and then every person who a partner shall be jointly and severally liable to pay to the extent to which he is liable under section 23, the tax including any penalty, sum forfeited and interest due from the firm under this Act or under any earlier law, up to the time of dissolution, whether such tax including any penalty, sum forfeited and interest has been assessed before such dissolution but has remained unpaid or is assessed after dissolution. (4)Where as dealer, liable to pay tax under this Act, transfers or otherwise disposes of his business in whole or in part or effects any change in the ownership thereof, inconsequence of which he is succeeded in the business or part thereof by any other person, the dealer and the person succeeding shall jointly and severally be liable to pay the tax including any penalty, sum forfeited and interest due from the dealer under this Act or under any earlier law, up to the times of such transfer, disposal or change, whether such tax including any penalties, sum forfeited and interest has been assessed before such transfer, disposal or change but has remain unpaid is assessed thereafter. (5)Where the dealer, liable to pay tax under this Act:-Is the guardian of a ward on whose behalf the business is carried out by the guardian or is trustee who carry on the business under a trust for the beneficiary, then, if the guardianship or the trust is terminated, the ward or, as the case may be, the beneficiary shall be liable to pay the tax including any penalty, sum forfeited and interest due from the dealer up to the time of the termination of the guardianship or trust whether such tax including any penalty, sum forfeited and interest has been assessed before the termination of the guardianship or trust, but has remain unpaid, or is assessed thereafter. (6)Where a dealer is liable to pay tax under this Act, is succeeded in the business by any person in the manner described in clause (a) of sub-section (1) or in sub-section (4) then such person shall be liable to pay tax on the sales or purchases of goods made by him on and after the date of succession add shall (unless he already holds a certificate of registration) within sixty days thereof apply for registration.

Chapter III LIABILITY IN SPECIAL CASES

22. Certain agents liable to tax for sales on behalf of principal

Statutory text

(1) Where any persons sells or purchases any taxable goods on behalf of his principal then such person and his principal shall both be jointly and severally liable to pay taxes on the turnover of such sales of purchases.
(2) If the principal on whose behalf commission agents have sold or purchased any goods, shows to the satisfaction of the Commissioner that the tax has been paid by the commission agents on such goods under sub-section (1), the principal shall not be liable to pay the tax against in respect of the same transaction.
(3) Where a manager or agent of a non-resident dealer sells or purchases any goods on behalf of a non-resident dealer in State, then the non-resident dealer and the manager or agent residing in the State, shall be jointly and severally liable to pay tax on the turnover of such sales or purchases; Provided that, if the non-resident dealer shows to the satisfaction of the Commissioner that the tax payable in respect of such sale or purchases has been paid by the manager or agent residing in the State, then the non-resident dealer shall not be liable to pay tax in respect of the same transaction.

Chapter III LIABILITY IN SPECIAL CASES

23. Liability of partners

Statutory text

(1) 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 payments and according any notice or order under this Act may be served on any person who was a partner during the relevant time whether or not the firm has been dissolved and all the provisions of this Act shall apply accordingly. (2)Where any such partner retires from the firm, he shall be liable to pay the tax, penalty; sum forfeited and interest remaining unpaid at the time of his retirement and any such amount due up to the date of retirement though un-assessed at that date.

Chapter III LIABILITY IN SPECIAL CASES

24. Amalgamation of companies

Statutory text

(1) When two or more companies are to be amalgamated by the order of a Court or the Central Government and the order it to take effect from a date earlier to the date of the order and any two or more such companies have sold or purchased and goods to or from each other in the period commencing on the date from which the order is to take effect and ending on the date of the order, then such transaction of sale and purchase will be included in the turnover of sales or of purchases of the respective companies and will be assessed to tax accordingly.
(2) Notwithstanding anything contained in the said, for all the purposes of this Act, the said two or more companies will be treated as distinct companies and will be treated as such for all periods up to the date of the said order and the registration certificates of the said companies will be cancelled, where necessary, with effect from the date of the said order.
(3) Words and expressions used in this section, but not defined, will have the respective meanings to those in the Companies Act, 1956.

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