GST Jamku AILiability of partners of firm to pay tax.
Section 90
Notwithstanding any contract to the contrary and any other law for the time being in force, 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:
Provided that 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:
Provided further that if no such intimation is given within one month from the date of retirement, the liability of such partner under the first proviso shall continue until the date on which such intimation is received by the Commissioner.
In any situation where a firm is required to pay taxes, interest, or penalties under the law, all partners of the firm, along with the firm itself, are collectively responsible for making these payments. This shared responsibility applies even if there is a contract stating otherwise or if there are other laws in effect.
Retirement of a Partner
When a partner decides to retire from the firm, they, or the firm itself, must inform the Commissioner in writing about the date of the partner's retirement. This notice should be given within one month from the date of retirement. In case of retirement, the retiring partner remains responsible for paying any taxes, interest, or penalties due up to the date of retirement, whether these amounts have been determined or not.
Continued Liability in the Absence of Notice
If the firm or the retiring partner fails to provide this notice within one month from the retirement date, the partner's liability, as mentioned in the first provision, will persist until the Commissioner receives the notice of retirement. This ensures that the responsibility for outstanding payments is clear and communicated in a timely manner.