Transfer Of Property To Be Void In Certain Cases [Section 81] - GST Ready Reckoner - GST

TRANSFER OF PROPERTY TO BE VOID IN CERTAIN CASES Avoiding transfer of property in case of tax becoming due This provision of the act is for protecting the Government revenue by avoiding transfer of property by a taxable person to another person. This would prevent any attempt to defraud the revenue by alienating the properties. The said provision would be applicable only when any tax would become due. Further Section 81(1) held that The following acts done by a person, in favour of any another person, after the tax becomes due, would be void if it: Creates a charge on; property Belonging to him; or In his possession by way of sale, mortgage, exchange, or any other mode of transfer whatsoever of any of his properties. Also Section 81(2) provides that Situations / cases treated as Valid Made for adequate consideration and Without notice of the pendency of proceeding or Without notice of such tax or other sum payable by the said person, With previous permission of the proper office