Recovery from directors
This query is : Resolved
17 February 2009
Can a sales tax demand be recovered from directors of a ltd company ? If yes then what are the remedies. If no, what are the case laws.further the demand is due to non submission of statutory forms, and directors have no role, please provide case laws to support your reply.
17 February 2009
First you have to verify what for the demand has been raised.
Whether it is for the rate structure, or suppression of sales or any mistakes by clerks or stock problem.
If the mistakes have happened during the course of business with no fault of the directors then you cannot recover from them.
If the mistakes has been happened due the fault of the directors, then it can be recovered from the directors.
Based on your facts of the demand you have choose the option.
Whether it is for the rate structure, or suppression of sales or any mistakes by clerks or stock problem.
If the mistakes have happened during the course of business with no fault of the directors then you cannot recover from them.
If the mistakes has been happened due the fault of the directors, then it can be recovered from the directors.
Based on your facts of the demand you have choose the option.
Message likes :
1 times
17 February 2009
Yes.
Provided it is proven by the department that it was intention of director to circumvent the taxes or defraud the department
Provided it is proven by the department that it was intention of director to circumvent the taxes or defraud the department
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Tds on commission charges
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- GST ITC REVERSE
- Regarding Applicability of Tax Audit u/s 44AB
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- TDS on TRUST
- Renovation exp. in flat by family member
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- New GST registration for new place of business.
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
Featured
12 September 2026
Assistant Manager - Finance & Compliance
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
ARTICLESHIP
18 September 2026
Industrial Trainee
Twenty Point Nine Five Ventures Private Limited
Noida
CA Inter
View Details
ARTICLESHIP
01 September 2026
Articles
Saini Pati Shah & Co LLP, Chartered Accountants
Mumbai
CA Foundation
View Details
ARTICLESHIP
04 September 2026
Accounts Executive
Hema Yashwanth & Associates
Chennai
B.Com
View Details
CCI
Pro
CAclubindia
