Vat Actupdated - RS Goyal & Associates

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(4) When two or more companies are amalgamated by the order of a court or of the
Central Government and the order is to take effect from a date earlier to the date of the order
and any of such companies have sold or purchased any goods to or from each other during
the period commencing on the date from which the order to take effect and ending on the
date of the order, then such transactions of sale and purchase will be included in the
turnover of the sales or purchases of the respective companies and will be assessed to tax
accordingly.
(5) Notwithstanding anything contained in the order specified in sub-section (4), for all of
the purposes of this Act, the said two or more companies will be treated as distinct
companies and will be treated as such for the periods upto the date of the said order and the
registration certificates of the said companies will be cancelled, where necessary, with effect
from the date of the said order.
6 (5A) (a) When any company is de-merged by the order of a court or of the Central
Government and the order is to take effect from a date earlier to the date of the
order, then for all of the purposes of this Act, it shall be presumed that the two or
more companies brought into existence by the operation of the said order have not
sold or purchased any goods to or from each other during the period commencing
on the date from which the order is to take effect and ending on the date of the
order, and will be assessed to tax accordingly.
(b) Notwithstanding anything contained in the order specified in clause (a), for all of the
purposes of this Act, the said two or more companies will be treated as single
company for the periods upto the date of the said order and the registration
certificate of the de-merged company will be cancelled, where necessary, with
effect from the date of the said order and the said two or more companies shall be
granted registration certificates, where necessary, from the date of the said order.
(5B) Notwithstanding anything contained in section 14, when the ownership of the business
of a registered dealer is entirely transferred or when two or more companies are
amalgamated or a company is de-merged, by the order of a court or of the Central
Government, then the transferee, the amalgamated company or the de-merged companies
shall be entitled to take credit of the input tax rebate, which remains unadjusted on the date
of said transfer or the order of amalgamation or de-merger, as the case may be. 6
(6) Words and expressions used in sub-sections 6 (4), (5), (5A) and (5B) 6 but not
defined, shall have the same meanings as assigned to them in the Companies Act, 1956
(No. 1 of 1956).
30 : Liability of firms
Notwithstanding any contract to the contrary, where any firm is liable to pay tax under this
Act, the firm and each of the partners of the firm shall be jointly and severally liable for such
payment;
Provided that where any such partner retires from the firm, he shall also be liable to pay
the tax, interest and the penalty, if any remaining unpaid at the time of his retirement and
any tax due upto the date of retirement though un-assessed on that date.
31 : Transfers to defraud revenue void
Where during the pendency of any proceeding under this Act or under the Act repealed by
section 81 of Act No. 5 of 1995 or the Act repealed by this Act or under the Madhya Pradesh
Land Revenue Code, 1959 (No.20 of 1959) any dealer creates a charge on or parts with the