Penalties and interest

Penalties: [Rule 48(1) & (2)]


Offence Penalty
Failure   to issue bill, invoice or cash memo Not exceeding double the amount of tax


Failure   to apply for registration Not   exceeding 10 times of the LBT payable

by the   dealer during unregistered period

Failure  to  comply    with  any  notice    in

respect   of proceedings

Not   exceeding Rs.  10,000/-
Failure   to disclose entry of goods on which

LBT   is   leviable     or   failure   to     show

appropriate   liability in the return, claiming

inaccurate   deduction or refund


Not exceeding 5 times the amount of LBT



Knowingly   producing or issuing false bill,

voucher, or any other documents which

reduces   the tax liability

a. In case of first occasion, penalty not

exceeding   twice the amount of LBT due


b. In case of subsequent occasion, penalty

not exceeding five times the amount of

LBT due.


Furnishing a declaration or certificate to

claim      exemption    from    LBT      and


Not exceeding five times of LBT leviable


Failure    to    furnish      returns    within prescribed   time


Not   exceeding Rs.  5,000/-



Failure to maintain accounts or records as per the   direction of the Commissioner


Rs. 5,000/-


double the amount of LBT payable

(whichever is less)



Collection   of LBT in excess of tax payable                                                                          or

or collection on exempted goods


Rs.   2,000/-


double   the amount of LBT payable

(whichever   is less)





Interest: [Rule 48(3)]


Period of Default Rate of Interest
Late payment upto first 12 months from the due


2% per   month
Late   beyond 12 months from the due date 3% per   month
Late   payment of tax found due as per Assessment


2% per   month from 01st April of the

next year to which the Assessment

Order   relates

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