Section 89 of Sikkim GST Act 2017 : Liability of directors of private company

By | June 2, 2018
(Last Updated On: June 3, 2018)

Section 89 of Sikkim GST Act 2017

[ Section 89 of Sikkim GST Act 2017 explains Liability of directors of private company and is covered in  CHAPTER XVI  LIABILITY TO PAY IN CERTAIN CASES]

[ Enforced with effect from 1-7-2017. ]

Liability of directors of private company

89. (1) Notwithstanding anything contained in the Companies Act, 2013 (18 of 2013), where any tax, interest or penalty due from a private company in respect of any supply of

goods or services or both for any period cannot be recovered, then, every person who was a director of the private company during such period shall, jointly and severally, be liable for the payment of such tax, interest or penalty unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

Where a private company is converted into a public company and the tax, interest or penalty in respect of any supply of goods or services or both for any period during which such company was a private company cannot be recovered before such conversion, then, nothing contained in sub-section (1) shall apply to any person who was a director of such private company in relation to any tax, interest or penalty in respect of such supply of goods or services or both of such private company:

Provided that nothing contained in this sub-section shall apply to any personal penalty imposed on such director.


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