Section 64 of The Bihar Value Added Tax Act, 2005
Tax payable by deceased dealer shall be paid by his representative.
- (1)Where a dealer dies after assessment but before payment of the tax, interest or penalty payable by him under this Act, his executor, administrator, successor-in-interest or legal representative shall be liable to pay out of the property of the deceased, to the extent to which it is capable of meeting the charge, the amount payable by such dealer.
- (2)When a dealer dies without having furnished the return under section 24 or after having furnished the return but before assessment, the prescribed authority may proceed to make an assessment and determine the amount payable under this Act by the deceased and for the said purpose he may require the executor, administrator, successor-in interest or legal representative, as the case may be, of the deceased to perform all or any of the obligations, which he might, under the provisions of this Act, have required the deceased to perform and the amount thus determined shall be payable by the executor, administrator, successor-in-interest or legal representative of the deceased to the extent to which the property of the deceased is capable of meeting the charge.
Summary
- When a dealer dies, their legal representative or successor must pay the deceased person's tax debts out of the deceased's estate.
- This rule applies whether the dealer died after the tax was officially calculated or before they even filed a return.
- The tax official can formally assess the deceased dealer and ask the legal representative to fulfill any duties the deceased dealer was supposed to do under the law.
- The representative is only required to pay up to the total value of the property left behind by the deceased.
Practical examples
FAQ
1. Under Section 64 of the Bihar Value Added Tax Act, 2005, does a deceased dealer's family have to pay their taxes from personal savings?
No, under Section 64 of the Bihar Value Added Tax Act, 2005, the legal representative or successor only pays the tax out of the property of the deceased, to the extent that the property can meet the charge.
2. What happens if a dealer dies before filing a tax return under Section 64 of the Bihar VAT Act?
Section 64 of the Bihar Value Added Tax Act, 2005 allows the tax authority to assess the amount payable and require the legal representative to perform the obligations the deceased should have performed, like filing the return.
3. Who exactly is responsible for paying a deceased person's tax under Section 64 of the Bihar Value Added Tax Act, 2005?
Section 64 of the Bihar Value Added Tax Act, 2005 places this responsibility on the executor, administrator, successor-in-interest, or legal representative of the deceased.
4. Can the tax authority make an assessment after a dealer dies under Section 64 of the Bihar Value Added Tax Act, 2005?
Yes, under Section 64 of the Bihar Value Added Tax Act, 2005, the prescribed authority may proceed to make an assessment and determine the amount payable by the deceased.
Test yourself
1.According to Section 64 of the Bihar Value Added Tax Act, 2005, what is the maximum financial responsibility of a legal representative for a deceased dealer's tax?
2.Under Section 64 of the Bihar Value Added Tax Act, 2005, what can the tax authority require an executor to do if the dealer died before furnishing a return?
3.Which individuals are explicitly listed in Section 64 of the Bihar Value Added Tax Act, 2005 as responsible for a deceased dealer's tax?
4.Comparing Section 63 and Section 64 of the Bihar Value Added Tax Act, 2005, how does the liability source differ?