Uttar Pradesh VAT Rules

Liability of Firm, Association of Persons And Hindu Undivided Family

1. Subject to the provisions under this Act, where dealer is a firm or association of persons or a Hindu Undivided Family -
   • such firm or association and every person who is a partner of such firm or a member of such association or Hindu Undivided Family shall be liable jointly and severally for the payment of tax assessed and penalty imposed or any amount due under this Act and payable by such firm or association or Hindu Undivided Family; and
   • where such firm or association or Hindu Undivided Family has discontinued its business, -
     • tax, including penalty payable under this Act by such firm or association or Hindu Undivided Family up to date of such discontinuance may be assessed and determined as if no such discontinuance had taken place ; and
     • every person who was at the time of such discontinuance a partner of such firm or a member of such association or Hindu Undivided Family shall, notwithstanding such discontinuance, be liable jointly and severally for the payment of tax assessed and penalty imposed and payable by such firm or association or Hindu Undivided Family whether such assessment is made or penalty is imposed prior to or after such discontinuance, and, subject to as aforesaid, the provisions of this Act shall apply as if every such person or partner were himself a dealer:

       Provided that where it is found that a change has occurred in the constitution of the firm or association, the firm or association as reconstituted as well as partners or members of the firm or association, as it existed before re-constitution, shall jointly and severally be liable to pay tax including penalty, if any, due from such firm or association for any period before its reconstitution.

2. Where the ownership of the business of any dealer liable to pay tax is transferred, the transferor and transferee shall jointly and severally be liable to pay the tax including penalty, if any, payable in respect of such business till the time of such transfer, whether the assessment is made or the penalty is imposed prior to or after such transfer.
3. Where a tax including penalty, if any, is recovered form a reconstituted firm or association under the proviso to sub-section (1) or from a transferee under sub-section (2), such firm or association or a transferee shall be entitled to recover the same from the person who was originally liable to pay the tax.

Tax due from deceased person payable by his representatives

1. Where a dealer dies, his executor, administrator or other legal representative shall be deemed to be the dealer for the purposes for this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased dealer:

   Provided that -

   • in respect of any liability of the deceased, his executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hand;
   • any proceeding including the proceeding for recovery, may be continued from the stage at which it was pending at the time of the death of the dealer.
   • The provisions of sub-section (1) shall mutatis mutandis apply to a dealer being a partnership firm which may stand dissolved in consequence of the death of any partner.

Tax liability in case of minor or incapacitated person

In the case of any guardian, trustee or agent of any minor or other incapacitated person, carrying on business on behalf of and for the benefit of such minor or other incapacitated person, the tax shall be, levied upon and recoverable from such guardian, trustee or agent, as the case may be, in like manner and to the same extent as it would be leviable upon and recoverable from any such person or other incapacitated person, if he were of full age and sound mind and if he were conducting the business himself; and all the provisions of the Act and the rules made thereunder shall apply accordingly.

Liability in case of court of wards, etc.

In the case of business owned by a dealer whose estate or any portion of whose estate is under the control of the Court of Wards, the Administrator General, the Official Trustee or any Receiver or Manager (Including any person whatever his designation, who in fact manages the business on behalf of the dealer) appointed by him or under any order of a court, the tax shall be levied upon and recoverable from such Court of Wards, Administrator General, Official Trustee, Receiver or Manager, in like manner and in the same terms as it would be leviable upon and recoverable from the dealer, as if he were conducting the business himself, and all the provisions of the Act and the Rules made thereunder shall apply accordingly.

Exemption from tax.

Notwithstanding anything contained in this Act, no tax under this Act shall be payable and be levied on the turnover of sale or purchase of -

• such goods, as the State Government may, by notification, exempt; or
• any goods where such sale or purchase takes place -
  • in the course of inter - state trade or commerce; or
  • outside the State; or
  • in the course of the export of the goods out of the territory of India or in the course of the import of the goods into the territory of India.