Consequences of failure to deduct or to pay tax

Tax200033 sections

Statutory text

(1) If an employer, not being an officer of Government, fails to pay the tax as required by or under this Act, he shall, without prejudice to any other consequences and liabilities which he may incur, be deemed to be an assessee-in default in respect of the tax.
(2) Without prejudice to the provisions of sub-section (1), an employer referred to in that sub-section shall be liable to pay simple interest at two per cent per month, of the amount of the tax payable for each month for the period for which the tax remains unpaid.
(3) Where the amount of tax as assessed under section 9 or as found payable in view of an order passed under sections 19, 20, 21 and 22 is more than the amount of tax paid by the employer, then such employer shall be liable to pay simple interest on the amount of difference of tax at the rate and in the manner laid down in sub-section (2).
(4) If an enrolled person fails to pay the tax as required to be paid by or under this Act, he shall be liable to pay simple interest at the rate and in the manner laid down in sub-section (2).
(5) The Commissioner may, subject to such conditions and limitations as may be prescribed and for reasons to be recorded in writing waive the whole or any part of the interest payable in respect of period under this section.

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