Menu
return filing in case of death of sole proprietor
if a get registered person(sole proprietor) dies will is there a liablility to file returns on due dates? and if failed, does penal and interest provisions get attracted?
Replies (2)
Liability after the Death of the Taxpayer
If the business is carried on by the legal heir/representative then the heir/representative will be held liable for the unpaid dues under GST.
If the business is discontinued, whether before or after death, the legal heir will be liable to pay the due amount. However, the heir will pay out of the estate of the deceased only to the extent to which the estate is capable of meeting the amount. The legal heir/representative will NOT be personally liable for the pending dues.
For example:
Mr. A sells readymade clothes in his shop. He owes Rs. 1,00,000 as GST. But he passes away and his daughter Ms. X takes over the shop. Then, Ms. X is liable to pay the pending amount of Rs.1,00,000.
However, if Ms. X inherits Rs. 70,000 and closes down the shop after her father’s death, then she would be liable to pay only Rs.70,000 as the tax. She can NOT be held liable for the balance Rs. 30,000 since it is beyond the inherited amount.
If the business is carried on by the legal heir/representative then the heir/representative will be held liable for the unpaid dues under GST.
If the business is discontinued, whether before or after death, the legal heir will be liable to pay the due amount. However, the heir will pay out of the estate of the deceased only to the extent to which the estate is capable of meeting the amount. The legal heir/representative will NOT be personally liable for the pending dues.
For example:
Mr. A sells readymade clothes in his shop. He owes Rs. 1,00,000 as GST. But he passes away and his daughter Ms. X takes over the shop. Then, Ms. X is liable to pay the pending amount of Rs.1,00,000.
However, if Ms. X inherits Rs. 70,000 and closes down the shop after her father’s death, then she would be liable to pay only Rs.70,000 as the tax. She can NOT be held liable for the balance Rs. 30,000 since it is beyond the inherited amount.
Well explained Pankaj sir.......
Recent Topics :
- Rule 86(B) Applicability
- ROC FILINGS FY2025-26
- Mismatch in 26AS
- How Can a Trader Utilise Approximately ₹1.20
- How Can Law Students Present Papers at Conferences
- On which amount 200% penalty under section 270A is
- RECEIVED INTIMATION U/S 399 FOR TDS PAYMENT ON PRO
- How do CA firms track SEBI/AMFI circulars and dead
- Jurisdictional validity of Sec 148 notice after fa
- Taxable Income or Not
Related Topics :
CAclubindia
