(1) Where a person (the creditor) provides a supply, by way of sale, of the property of another person (the debtor) in full or partial settlement of a debt owed by the debtor to the creditor‚ in that case-

(a) the supply shall be deemed to have been made by the debtor;

(b) the creditor shall be liable to pay the taxes, if any, payable on the supply; and

(c) After payment of the debt and other debts, payable Value Added Tax shall be liable to be deposited on a priority basis before any surplus money may be returned to the debtor.

(2) The debtor and the creditor shall be jointly and severally liable for payment of taxes.

(3) The Board shall prescribe the conditions and method of paying Value Added Tax under this section by any unregistered creditor.