Section 90 LIABILITY OF PARTNERS OF FIRM TO PAY TAX - GST Ready Reckoner - GST

LIABILITY OF PARTNERS OF FIRM TO PAY TAX Partners of the firm jointly and severally liable to pay any tax, interest or penalty of the firm : Section 90 Provides that , where any firm is liable to pay any tax, interest or penalty under this Act, the firm and each of the partners of the firm shall, jointly and severally, be liable for such payment. Retiring partner liable to pay any tax, interest or penalty of the firm due up to the date of his retirement : Where any partner retires from the firm, he or the firm, shall intimate the date of retirement of the said partner to the Commissioner by a notice in that behalf in writing and such partner shall be liable to pay tax, interest or penalty due up to the date of his retirement whether determined or not, on that date. However, if no such intimation is given within 1 month from the date of retirement, the liability of such partner shall continue until the date on which such intimation is received by the Commissioner Example 1 : A firm having partners with the name of Mr. A, Mr. B Mr. C where partner Mr. A, being a retired partner of such firm and firm ABC Ltd is liable to pay tax ? what is liability of partners in such case. Answer 1) Mr .B. Mr .C. shall remain jointly and severally liable to pay any tax, interest or penalty of the firm Whereas Mr. A or such firm shall intimate of such retirement to the commissioner within one month from date of retirement otherwise the liability of such Mr. A may continue until the date on which such intimation is received by the commissioner, Though the liability of Mr. A will remained to the date of his retirement if he submit his retirement intimation to the commissioner within the prescribed time.