Penalties & interest

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

Offence Penalty
Failure   to issue bill, invoice or cash memo Not exceeding double the amount of tax Payable
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 Payable
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 dueb. 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/-

or double the amount of LBT payable (whichever is less)

Collection of LBT in excess of tax payable or collection on exempted goods Rs.   2,000/- or 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 date 2% per month
Late beyond 12 months from the due date 3% per month
Late payment of tax found due as per Assessment Order 2% per   month from 01st April of the next year to which the Assessment Order relates

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