When a situation arises that a person who is yet to pay his taxes, penalty or interest, dies suddenly, then there are various conditions as to who and when should the GST be paid. Also if the company dissolves, then even the question remains the same. Take a look at what should be done regarding the unpaid GST in case an emergency situation like that arises.

Death of the Taxable Person
If the business continues after the end of the person who was liable to pay the GST, then his or her legal heir is bound to pay those taxes after his death. However, if the business that was carried on by him gets discontinued after his death or even before it, then their legal representative is bound to pay those taxes on behalf of him.

In Case of Firm Dissolution
If a partnership firm gets dissolved then every single person who was a partner, there will be individually as well as jointly be liable to pay the remaining taxes which are unpaid. The taxes are to be paid until the time of dissolution and not for the period after that. This holds true if the amount of tax to be paid was decided on before the firm got dissolved.

Tax Liable for Partition of HUF or AOP
If the person who is supposed the pay the tax is a member If the association of people (AOP) or Hindu undivided family (HUF) then if the properties are divided among the various members of those group then every individual member will be severally or jointly be liable for paying the unpaid amount of tax.

In Care of Termination of Trust or Guardianship
If the person who is taxable works under a guardian and if the trust or the guardianship gets terminated then the beneficiary or the ward will be made responsible, and he or she will have to pay the entire tax. This case holds true if the tax was calculated before the guardianship termination but remains unpaid after it has been terminated.

Thus we saw these are the various cases that can occur and who all are normally responsible for paying the taxes if such a situation arises. For more information, email us at info@rajlaxmiworld.com or visit us at www.rajlaxmiworld.com