GST Jamku AILiability of guardians, trustees, etc.
Section 91
Where the business in respect of which any tax, interest or penalty is payable under this Act is carried on by any guardian, trustee or agent of a minor or other incapacitated person on behalf of and for the benefit of such minor or other incapacitated person, the tax, interest or penalty shall be levied upon and recoverable from such guardian, trustee or agent in like manner and to the same extent as it would be determined and recoverable from any such minor or other incapacitated person, as if he were a major or capacitated person and as if he were conducting the business himself, and all the provisions of this Act or the rules made thereunder shall apply accordingly.
In situations where a business is managed by a guardian, trustee, or agent on behalf of a minor or someone incapacitated, this article outlines the tax implications and responsibilities for such individuals. The tax, interest, or penalty will be applicable to and recoverable from the guardian, trustee, or agent as if they were the minor or incapacitated person conducting the business themselves.
Tax Liability for Guardians, Trustees, and Agents: If a business subject to tax, interest, or penalty under the relevant Act is overseen by a guardian, trustee, or agent acting on behalf of a minor or incapacitated person, the following rules apply:
Equal Treatment: The tax, interest, or penalty will be levied upon and recoverable from the guardian, trustee, or agent in the same manner and to the same extent as it would be from the minor or incapacitated person if they were of legal age or capacitated.
Business Conduct: The guardian, trustee, or agent is treated as if they were conducting the business on their own, assuming the responsibilities and liabilities associated with it.
Application of Act Provisions: All the provisions outlined in the relevant Act or the rules established under it will apply accordingly. This ensures that the legal framework governing taxation is consistently applied, regardless of whether the business is managed by the minor or incapacitated person directly or by a designated guardian, trustee, or agent.
Conclusion: In summary, when a guardian, trustee, or agent manages a business on behalf of a minor or incapacitated person, they assume the tax responsibilities as if they were the business owner. This equal treatment ensures that the taxation framework is applied consistently, promoting fairness and adherence to the provisions outlined in the Act.