October 2017 – Page 25

October 2, 2017March 5, 2018

Who will be held liable for payment of tax, interest or penalty after the death of the taxable person

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)

October 2, 2017March 5, 2018

Whether Court of Wards controlling the estate of a taxable person is liable for the payment of tax dues in respect of the estate

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)

October 2, 2017March 5, 2018

Whether the guardian/ the trustee/ the agent is liable for tax dues etc., in case of a business of minor or incapacitated person

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)

October 2, 2017March 5, 2018

Whether the retiring partner is liable in respect of the transactions taken place after his retirement

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)

October 2, 2017March 5, 2018

Whether the retiring partner of a firm is liable to pay tax

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)

October 2, 2017March 5, 2018

Whether the liability of the director still exists if such private limited company is converted into public limited company

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)

October 2, 2017March 5, 2018

Whether the director of a private limited company is liable for the payment of tax in respect of the supply made by or to such private company

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)

October 2, 2017March 5, 2018

Liability in case of winding up of private limited company

Every director of the private company shall be jointly and severally be liable to pay tax, interest or penalty.

(ICAI FAQ PUBLICATIONS 06-09-2017 Liability in case of Company in liquidation : FAQ NO. 8)

October 2, 2017March 5, 2018

What is the responsibility of the liquidator in the course of winding up the Company

The receiver of assets / liquidator shall within 30 days from the date of appointment intimate the Commissioner of his appointment. Thereafter, the Commissioner may provide the details that the Company may be liable to pay tax, interest or penalty.

(ICAI FAQ PUBLICATIONS 06-09-2017 Liability in case of Company in liquidation: FAQ NO. 7)

October 2, 2017

Whether in an amalgamation, the companies shall be treated as separate entities for the period starting from effective date and ending on the date of order of the Court

Yes, for the purposes of this Act, the two or more companies amalgamated or merged in pursuance of an order of Court or of Tribunal or otherwise, shall be treated as distinct companies for the period up to the date of the said order and the registration certificates of the said companies shall be cancelled with effect from the date of the said order.

(ICAI FAQ PUBLICATIONS 06-09-2017 Liability in case of amalgamation /merger of Companies: FAQ NO. 6)