Transfer of business liability shifts joint tax responsibility to transferor and transferee, with registration amendment required. Liability is imposed on both the transferor and transferee when a taxable person transfers a business in whole or in part. They are jointly and severally liable, to the extent of the transfer, for tax, interest, or penalty due up to the time of transfer, whether determined before the transfer and unpaid or determined afterwards. If the transferee continues the business, the transferee is liable for tax on supplies made from the date of transfer and must apply for amendment of registration within the prescribed time.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Transfer of business liability shifts joint tax responsibility to transferor and transferee, with registration amendment required.
Liability is imposed on both the transferor and transferee when a taxable person transfers a business in whole or in part. They are jointly and severally liable, to the extent of the transfer, for tax, interest, or penalty due up to the time of transfer, whether determined before the transfer and unpaid or determined afterwards. If the transferee continues the business, the transferee is liable for tax on supplies made from the date of transfer and must apply for amendment of registration within the prescribed time.
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