Section 109 : Recovery of tax from the person liable to pay tax

1) If the person in arrear of tax does not pay tax within the due date for payment of tax, the Department may, by giving a notice in writing, order any of the following payers to pay to it the amount to the extent of the amount of tax payable on behalf of the person in arrear of tax, within the date mentioned in that notice:

a) The person who has to pay the amount to the person in arrear of tax,

b) The person who holds money for or on behalf of the person in arrear of tax,

c) The person who holds money on behalf of any third person in a manner to pay it to the person in arrear of tax or

d) The person who has got authority from the third party to pay the amount to the person in arrear of tax.

2) The Department has to give a copy of the notice given to the payer pursuant to sub-section (1) to the person in arrear of tax.

3) Notwithstanding anything contained in sub-section (1), the date mentioned in the notice referred to in that sub-section shall not be earlier than the date mentioned in clauses (a) and (b):

a) The date on which the amount has to be paid to the person in arrear of tax or the date on which such amount has been held on his behalf and

b) The date on which the notice has been given pursuant to sub-section (2).

4) The amount paid by the payer pursuant to sub-section (1) shall be deemed as paid to the person in arrear of tax. The person in arrear of tax or any other person shall not be allowed to claim such amount against the payer.