Penalty for failure to declare Tax Due

Tax200387 sections5 chapters

Chapter IV PROCEDURE AND ADMINISTRATION OF TAX

Statutory text

(1) Any dealer who has under-declared tax, and where it is established that fraud or willful neglect has been committed he shall be liable to pay penalty equivalent to double the amount of tax so under-declared and in addition, he shall also be liable to pay interest at the rate of one percent per month or part thereof for the period for which tax is due.
(2) Where any dealer has under declared tax, and where it has not been established that fraud or wilful neglect has been committed and where under declared tax is,- i) less than ten percent of the tax due, a penalty shall be imposed at ten percent of such under-declared tax; ii) more than ten percent of the tax due; a penalty shall be imposed at twenty five percent of such under-declared tax.
(3) Where any dealer, prior to the detection by any authority prescribed, voluntarily declares that, tax due for a tax period is under declared and he pays the tax along with interest, no penalty shall be imposed provided that such declaration is made within the time limit and in the manner prescribed.

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