Section 53 of Sales Tax Act, 1990 has defined recovery of tax from estate of deceased person and bankruptcy.
Following is the text of section 53 of the Sales Tax Act, 1990:
53. Estate of deceased person.– The tax liability of a deceased registered person under the Act shall be the first charge on his estate in the hands of his successors.
54. Estate in bankruptcy.– (1) If a registered person is declared bankrupt, the tax liability under this Act shall pass on to the estate in bankruptcy if it continues to operate the business.
(2) If tax liability is incurred by an estate in bankruptcy, the tax is deemed to be a current expenditure in the operations of the estate in bankruptcy and shall be paid before the claims preferred by other creditors are settled.
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