ॐ असतो मा सद्गमय
Without prejudice to the provisions of section 90, all the partners of the firm prior to the date of reconstitution and after the date of reconstitution shall jointly and severally, be liable to pay tax, interest or penalty due from firm which is reconstituted, for any period before its reconstitution.
(ICAI FAQ PUBLICATIONS 06-09-2017 Liability in other cases : FAQ NO. 18)
Where a taxable person is a firm or an association of persons or a Hindu Undivided Family and such firm, association or family has discontinued business—
1. the tax, interest or penalty payable under this Act by such firm, association or family up to the date of such discontinuance may be determined as if no such discontinuance had taken place; and 2. every person who, at the time of such discontinuance, was a partner of such firm, or a member of such association or family, shall, notwithstanding such
discontinuance, jointly and severally, be liable for the payment of tax and interest determined and penalty imposed and payable by such firm, association or family, whether such tax and interest has been determined or penalty imposed prior to or after such discontinuance and subject as aforesaid, the provisions of this Act shall, so far as may be, apply as if every such person or partner or member were himself a taxable person.
(ICAI FAQ PUBLICATIONS 06-09-2017 Liability in other cases : FAQ NO. 17)
In case where the property of HUF/AOP is partitioned amongst the various members or groups of members, then each member or group of members shall jointly and severally, be liable to pay tax, interest or penalty pertaining to the period prior to the date of partition. Similarly, all the partners of the partnership firm shall be jointly and severally liable to pay tax, interest or penalty for the period prior to the date of dissolution. Such unpaid amount of tax, interest or penalty is determined either prior to partition / dissolution or otherwise.
(ICAI FAQ PUBLICATIONS 06-09-2017 Special provisions regarding liability to pay tax, interest or penalty in certain cases: FAQ NO. 16)
In terms of Section 93(1) of the CGST Act, 2017, after the death of the taxable person, the tax, interest or penalty remaining unpaid either determined before the death or otherwise, shall be recovered in the following manner:
1. if a business carried on by the person 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, interest or penalty due from such person under this Act; and
2. if the business carried on by the person is discontinued, whether before or after his death, his legal representative shall be liable to pay, out of the estate of the deceased, to the extent to which the estate is capable of meeting the charge, the tax, interest or penalty due from such person under this Act.
(ICAI FAQ PUBLICATIONS 06-09-2017 Special provisions regarding liability to pay tax, interest or penalty in certain cases: FAQ NO. 15)
Yes. The Court of Wards is liable for the payment of tax dues in respect of the estate, as if they were conducting the business themselves.
(ICAI FAQ PUBLICATIONS 06-09-2017 Liability of Court of Wards etc. : FAQ NO. 14)
Yes. The Guardian, or the Trustee, or the Agent as the case may be who is conducting the business for the benefit of minor or incapacitated person is liable for payment of tax dues.
(ICAI FAQ PUBLICATIONS 06-09-2017 Liability of guardians, trustees etc.: FAQ NO. 13)
No. The Retiring partner is not liable for the transactions taken place after his retirement provided he or the firm intimates to the Commissioner by a notice in writing of his retirement within one month from the date of retirement.
(ICAI FAQ PUBLICATIONS 06-09-2017 Liability of partners of Firm to pay tax: FAQ NO. 12)
Yes. Retiring partner shall be liable to pay tax, interest or penalty upto the date of his retirement whether determined prior to his retirement or otherwise.
(ICAI FAQ PUBLICATIONS 06-09-2017 Liability of partners of Firm to pay tax: FAQ NO. 11)
No. If a private limited company is converted into a public limited company, then the provisions of this section does not apply. However, any other personal penalty could be imposed on the Director.
(ICAI FAQ PUBLICATIONS 06-09-2017 Liability of directors of private company: FAQ NO. 10)
Yes. Every director of the private company during the period for which. tax, interest or penalty due in respect of any supply of goods or services or both, is not recovered shall jointly and severally be liable for the payment of such tax, interest or penalty, unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the Company.
(ICAI FAQ PUBLICATIONS 06-09-2017 Liability of directors of private company : FAQ NO. 9)