214.
A
& B Associates, a partnership firm, is liable to pay
following dues for
the period 1.1.2017-30.4.2017:
Tax:
2 lacs
Interest:
25,000
Penalty:
1 lacs
On
15.5.2017, the firm received a notice from the
Additional
Commissioner demanding
payment of tax dues (along with interest & penalty). Discuss the taxability
for such dues if:
i.
A
is a partner on 15.5.2017
ii.
B,
partner, retires on 15.12.2016
iii.
C,
partner, retires on 15.2.2017 & gave notice of his retirement to Commissioner on 2.3.2017
iv.
D,
partner, retires on 15.2.2017 & gave notice of his retirement to Commissioner on 20.3.2017 which is received by
Commissioner on
25.3.2017
v.
E
was appointed as partner on 1.2.2017
vi.
F
was appointed as partner on 1.6.2017
The
total dues outstanding = Rs. 3, 25, 000
(Tax:
2 lacs + Interest: 25,000 + Penalty: 1 lacs)
As
per section 90 of the CGST Act,
(a)
Firm & every partner is jointly & severally liable to pay Tax/ Interest/
Penalty due from firm, thus, A is liable.
(b)
B is not liable as he retired before the liability arose
(c)
Since C gave notice of his resignation to Commissioner within 1 month of
retirement, therefore, C is liable to pay Tax/ Interest/ Penalty due upto date
of retirement i.e., due upto 15.2.2016
(d)
Since D gave notice of retirement to Commissioner after 1 month, therefore, D is
liable to pay upto date of intimation received by Commissioner i.e. amount due
upto 25.3.2017.
(e)
E is liable to pay such dues arising from the date of appointment i.e., from
1.2.2017
(f)
F is not liable for any liability as he was not the partner during the period for which the liability
arose.