Joint and several liability for tax persists after business discontinuance or reconstitution, applying to firms, associations and HUFs. Partners, members or coparceners of a firm, association or HUF that discontinues business remain jointly and severally liable for tax, interest and ... Summary
Joint and several liability for tax persists after business discontinuance or reconstitution, applying to firms, associations and HUFs.
Partners, members or coparceners of a firm, association or HUF that discontinues business remain jointly and severally liable for tax, interest and penalty attributable to the entity up to discontinuance, whether determined before or after discontinuance; similar joint and several liability applies where a firm or association is reconstituted, on dissolution of a firm and on partition of an HUF. A Limited Liability Partnership is treated as a firm and "court" includes District Court, High Court and Supreme Court.
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