Amendment status not verified — confirm the current text below against the official source.
Liability to pay tax in case of transfer of business : -(I) When the ownership of the business of the assessee liable to pay tax under this Act, is entirely transferred. both the transferor and the transferee shall be jouitly and severally liable to pay any tax and penalty, if any, payable in respect of such business and remaining unpaid at the time of the transfer. the transferee shall also be liable to pay tax on sale or consumption by the transferee on and from the date of such transfer, and shall apply forthwith for grant of registration certificate unJess such certificate is already possessed by him. (2) Subject to the exemption given under section 7, where an assessee or any person other than an assesses, liable to 'pay tax under this Act, transfers the ownership or a part of his business, the transferor shall be liable to pay tax in respect of that part of transferred business. $li\:<.sjU-5 'l'slc (~). <jJ:l'><iiX 15 ~. 2011 36