(1) The liquidator of a private company wound up by order of court or otherwise, within 30 (thirty) days of his appointment as liquidator, shall notify the Deputy Commissioner of Taxes having jurisdiction regarding his appointment.

(2) The Deputy Commissioner of Taxes shall, within 3 (three) months from the date of receipt of the notice under sub-section (1), call for such information or make such inquiry as he thinks necessary for the payment of tax payable by the company at or after such time, inform the liquidator of the amount of money required.

(3) After being notified under sub-section (2), the liquidator shall set aside an amount equal to the tax specified in the notice and, before setting aside the said amount, pending the payment of the tax payable by the company on the date of dissolution or the payment of any debts due to the Government as per law, no assets of the company shall be set aside except for the purpose of providing security for their repayment, preferably due.

(4) The liquidator shall be personally liable on behalf of the company for payment of such amount of tax as is notified under sub-section (2), if he

(a) fails to give notice as required by sub-section (1); or

(b) contravenes the provisions of sub-section (3).

(5) Where more than one liquidator is appointed, the legal obligations and liabilities of the liquidator under this section shall be on all the liquidators jointly and severally.

(6) Notwithstanding anything contained in any other law for the time being in force, this section shall have effect.

(7) For the purposes of this section, “liquidator” shall include a person appointed as receiver of the assets of the company in the course of winding up.