Collection of tax by a proprietor and forfeiture of illegal or excess collection of taxes

Tax200742 sections3 chapters

Chapter III Chapter III

Statutory text

(1) A proprietor who is not registered under this Act, shall not collect any amount by way of tax or purporting to be by way of tax nor shall a registered proprietor collect any amount by way of tax or purporting to be by way of tax at a rate exceeding the rate specified under this Act at which he is liable to pay tax.
(2) If any proprietor contravenes the provisions of sub-section (1), the assessing authority, after giving such proprietor a reasonable opportunity of being heard shall, by order in writing, forfeit in favour of the State Government the amount unauthorizedly collected or collected in excess of the specified rate and may, in addition, by order in writing, impose upon him by way of penalty, a sum not exceeding one and a half times the amount so collected.

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