Section 86: Joint Tax Liability of Agent and Principal
Section 86 outlines that both an agent and their principal are responsible for paying taxes on taxable goods. When an agent either supplies or receives taxable goods for their principal, both parties are equally liable for the tax due on those goods. This means that if the tax is not paid, the authorities can pursue either the agent or the principal, or both, to recover the owed taxes. This joint and several liability ensures that tax obligations are met, regardless of whether the agent or the principal handles the transaction directly. It emphasizes the shared responsibility between the agent and principal in tax matters related to the goods involved.
Note: It is an AI generated summary for reference purpose only.
86. Liability of agent and principal
Where an agent supplies or receives any taxable goods on behalf of his principal, such agent and his principal shall, jointly and severally, be liable to pay the tax payable on such goods under this Act.
