What happens to the existing tax liability?

If a person liable to pay tax has a certain tax liability and in the meantime, he transfers his business to another person, what happens to the existing tax liability?

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4 Answer(s)

The person will have to fulfill his tax liability before his registration can be cancelled. The new person will start with new registration.

Answered on June 7, 2017.
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It depends upon the understanding between the foregoing and new party, the existing liability exists till the firm is in existence irrespective of its owner.

Answered on June 7, 2017.
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As GST will be PAN based one to surrender his GST number for transferring his business… all the existing liability needs to be pay off before transfer.

Answered on June 7, 2017.
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Tax liability assigned to business only not to any person. 1. if ongoing business transferred than transferee shall be liable for same or may deduct such amount from final consideration for business transfer 2. if old business has to be closed than as per law dealer have to file closure of business application with all liability clear.

Answered on June 7, 2017.
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Your Answer

Gen GST