Section 51 in The Gujarat Value Added Tax Act, 2003
51. Liability in case of transfer of business.
(1)Where a dealer, liable to pay tax under this Act, transfer his business in whole or in part, by sale, by gift, by lease, leave and licence, hire or in any other manner whatsoever, the dealer and the person to whom the business is so transferred shall jointly and serverlly be liable to pay the tax, interest or any penalty due from the dealer up to the time of such transfer, whether such tax, interest or penalty has been assessed before such transfer, but has remained unpaid or is assessed thereafter.(2)Where the transferee or the lessee of a business referred to in sub section (1) carries on such business either in his own name or in some other name, he shall be liable to pay tax on the sale of goods effected by him with effect from the date of such transfer and shall, if he is an existing dealer, apply within the prescribed time for amendment of his certificate of registration.
