Section 84 of The Bihar Value Added Tax Act, 2005 in hindi
- (1)Where an offence under this Act has been committed by a company, every person who at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that, nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
- (2)Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.–For the purposes of this section--
- (a)"company" means a company incorporated under the Companies Act, 1956 (1 of 1956), and includes a body corporate, a firm or other association of individuals;
- (b)"director" in relation to a firm means a partner in the firm.
- (3)Where an offence under this Act has been committed by a Hindu undivided family, the karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render the karta liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence: Provided further that, where an offence under this Act has been committed by a Hindu undivided family and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any adult member of the Hindu undivided family, such member shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and on conviction punished accordingly.
Summary
- This rule makes both a company and its responsible personnel guilty if the company commits a tax offence.
- A person in charge can avoid punishment by proving they had no knowledge of the offence or tried to prevent it.
- Directors, managers, or secretaries are also personally guilty if they consented to or neglected the offence.
- For Hindu undivided families, the karta is presumed guilty unless they prove they did not know or tried to stop it.
- Any adult member of a Hindu undivided family is guilty if the offence happened due to their consent or neglect.
Practical examples
FAQ
1. Are directors personally liable for company offences under Section 84 of The Bihar Value Added Tax Act, 2005?
Yes, under Section 84 of the Act, directors and managers are guilty if the offence was committed with their consent or due to their neglect.
2. How can a manager avoid punishment under Section 84 of the Bihar VAT Act?
Under Section 84 of the Bihar Value Added Tax Act, a manager can avoid punishment by proving the offence happened without their knowledge or that they exercised due diligence to prevent it.
3. Who is held responsible in a Hindu undivided family under Section 84 of the Bihar Value Added Tax Act, 2005?
According to Section 84 of the Act, the karta is deemed guilty, and any adult member who consented to or neglected the offence is also guilty.
4. Does the term company include a partnership firm under Section 84 of the VAT law?
Yes, Section 84 of The Bihar Value Added Tax Act, 2005 specifically defines a company to include a firm, and a director includes a partner in that firm.
Test yourself
Q1.Under Section 84 of The Bihar Value Added Tax Act, 2005, what is the primary condition for a company officer to escape liability for a company offence?
Q2.How does Section 84 of The Bihar Value Added Tax Act, 2005 treat a partnership firm when an offence is committed?
Q3.According to Section 84 of The Bihar Value Added Tax Act, 2005, when is an adult member of a Hindu undivided family, other than the karta, deemed guilty of an offence?
Q4.Under Section 84 of The Bihar Value Added Tax Act, 2005, who is initially deemed guilty if a Hindu undivided family commits a tax offence?