Section 107 : Officer employee of entity to be made responsible:
1) In cases where any entity does not observe anything required to be observed under this Act, each person who acts as the officer of that entity at that time shall be responsible for that.

2) In cases where any entity does not pay tax on the date due for payment of tax, all officers who are incumbent in that entity for the time being or incumbent until before six months shall be jointly and severally liable to pay that tax.

3) Notwithstanding anything contained in Sub-sections (1) and (2), these Sub-sections shall not be applicable in the following circumstances:-

a) Where the entity has committed such offense without knowledge and consent of such person, and

b) Where that person has, in order to avoid such offense, observed or exercised care, effort and skill which a reasonable man would observe or exercise in similar circumstances.

4) In cases where any person pays the tax required to be paid pursuant to Sub-section (2), that person may do as follows:-

a) To recover the amount which he has so paid from that entity,

b) For purposes of clause (a), to so hold under own control the property including the moneys of that entity which is under his possession or which may come under his possession that it is not in excess of the amount so paid.

5) In cases where any person holds any property under his control pursuant to clause (b) of Sub-section (4), the entity or any other person shall not be entitled to make any claim against such person.

Explanation: For purposes of this Section, "officer of any entity" means the manager of that entity or any person who acts in that capacity.