https://www.taxtmi.com/caselaws?id=127787 Sales tax claims in a winding up qualify for preferential payment where the tax is due on the relevant date and becomes payable within the preceding twelve months. Under section 530(1)(a) of the Companies Act, 1956, tax liability arises when taxable sales occur, while payment becomes due after assessment, quantification and service of demand. For a company subject to provisional liquidation, the relevant date is the provisional liquidator's appointment date. Sales tax quantified and demanded during the twelve-month period therefore ranks as preferential debt over ordinary unsecured debts, even if the underlying liability arose earlier. en-us Tue, 12 Aug 1958 00:00:00 +0530 Wed, 27 Nov 2013 14:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=127787 Sales tax claims in a winding up qualify for preferential payment where the tax is due on the relevant date and becomes payable within the preceding twelve months. Under section 530(1)(a) of the Companies Act, 1956, tax liability arises when taxable sales occur, while payment becomes due after assessment, quantification and service of demand. For a company subject to provisional liquidation, the relevant date is the provisional liquidator's appointment date. Sales tax quantified and demanded during the twelve-month period therefore ranks as preferential debt over ordinary unsecured debts, even if the underlying liability arose earlier. Case-Laws VAT and Sales Tax Tue, 12 Aug 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=127787