Liability on transfer of business: transferor and transferee jointly liable for outstanding tax; transferee must address supplies and registration. Where a taxable person transfers his business in whole or in part, the transferor and transferee are jointly and severally liable, wholly or to the extent of the transfer, for tax, interest and penalties due up to the date of transfer, whether determined before or after transfer. The transferee who carries on the business is liable to pay tax on supplies from the date of transfer and, if registered, must apply within the prescribed time to amend his certificate of registration.
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.
Liability on transfer of business: transferor and transferee jointly liable for outstanding tax; transferee must address supplies and registration.
Where a taxable person transfers his business in whole or in part, the transferor and transferee are jointly and severally liable, wholly or to the extent of the transfer, for tax, interest and penalties due up to the date of transfer, whether determined before or after transfer. The transferee who carries on the business is liable to pay tax on supplies from the date of transfer and, if registered, must apply within the prescribed time to amend his certificate of registration.
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