Received notice to pay old arrears for year 2003-2004
raj kumar reddy
(Querist) 07 March 2012
This query is : Resolved
Sri, I have received notice from Commerical tax officer ,mahabubnagar, andhrapradesh, to pay Old Arrears for the year 2003-2004 of Rs 83601=00 ,we have paid Turn over tax regularrly we have filied A2 returns on monthly basis for year 2003-2004also. for the we were going Hindustan unilever business then.now the firm is closed,we have closed the bussiness too. i want to know in what way we are held responsalbe for the old dues. please help me.
C. P. CHUGH
(Expert) 07 March 2012
All partners/Propritor/Directors are liable for discharge of their liability for any year, raised legally within the limitation period of any statue and the same are recoverable as arrears under Land Revenue Act, meaning thereby attachment of properties and imprisonment in certain cases. Now coming to your querry you have stated you received notice of arrears for 2003-04, you are required to check when this demand was raised against you and whether it is legally tenable. If you mean a show cause notice,please check what is the limitation prescribed under AP VAt Act to finalise and determine any liability under the ACT. Usually it should not be more than five year from close of the year under consideration. In your case it is already seven year and in my opinion no fresh demand can be raised against you, unless the matter was subjudiced i.e. subject matter of an appeal which has been decided recently.
advised accoridingly. Thanks
Guest
(Expert) 08 March 2012
No escape. If the firm was proprietory, the properietor is liable to clear the old dues of the Government. If the firm was a partnership firm, you may better contact the other partners and all of you will have to clear the Government dues collectively.
V R SHROFF
(Expert) 08 March 2012
old dues are payable. you cannot avoid payment by closing your firm.
