PENALTIES UNDER VAT (Arunachal Goods Tax Act 2005)
Pl Note:
1. “tax deficiency” means the difference between the tax properly payable by the person in accordance with the provisions of this Act and the amount of tax paid by the person.
2. Where two or more administrative penalties arise under this Act in respect of the same conduct of a person, the person is liable to pay only the greater penalty [and NOT both].
3. The liability to pay a penalty and the amount of the penalty may be the subject of an objection under section 75.
| Sl No | Event | Penalty |
|---|---|---|
| 1 | Registration | |
| i. | Failure to register. Where a person who is required to be registered under this Act has failed to apply for registration within one month from the day on which the requirement arose. | Rupees one thousand per day, subject to a maximum of Rupees one lakh. |
| ii. | Failure to notify change of registration details. If, a registered dealer fails to inform about change, within the prescribed time | Rupees one hundred per day subject to a maximum of Rupees five thousand. |
| iii. | Failure to apply for cancellation of registration. If a registered dealer fails to apply for cancellation (when he is so required) or fails to surrender his certificate of registration; | Rupees one hundred per day subject to a maximum of Rupees five thousand |
| iv. | Falsely represent status. If any person falsely represents that he is registered as a dealer under this Act, | Tax wrongly collected or Rupees one lakh, whichever is the greater |
| v. | Failure to comply with registration requirements. Where a registered dealer fails to start business within the period specified in his application; or fails to comply with any of the restrictions or conditions subject to which such registration was granted, | Rupees ten thousand. |
| 2 | Returns | |
| i. | Failure to furnish returns, complete returns or revised returns. If a person fails to furnish any return by the due date or furnishes incomplete return. | Rupees one hundred per day subject to a maximum of Rupees ten thousand. |
| ii. | False, misleading or deceptive returns. If a return furnished is false, misleading or deceptive in a material particular; | Rupees one lakh or the amount of the tax deficiency, whichever is the greater. |
| 3 | Payment of incorrect amount of tax | |
| i. | Transition stock credit. Any dealer who has claimed tax credit (in respect of first point tax paid goods) on transition to which he is not entitled; or claimed a greater tax credit than is allowed; | amount of tax credit so claimed or Rupees ten thousand, whichever is the greater. |
| ii. | Failure to pay proper amount of tax. where tax deficiency resulted from the intentional disregard of the law by the person; | - 100% of tax deficiency, |
| iii | Failure to pay proper amount of tax. | |
| (a) where tax deficiency resulted from careless disregard of the law by the person; | - 50% of tax deficiency, | |
| (b) where tax deficiency resulted from an honest and reasonable mistake made by the person; | - 10% of tax deficiency, | |
| (c) in any other case. NOTE: The Amount of penalty prescribed here can be reduced subject to fulfillment of conditions mentioned at iv, below- | - 20% of tax deficiency | |
| iii. | Automatic mitigation of penalties for failure to pay tax. | Penalty in (iii) above will be reduced - |
| (a) Voluntary disclosure prior to audit | - By 80% of the penalty leviable | |
| (b) Voluntary disclosure prior to audit. | - By 50% of the penalty leviable | |
| (c) Reliance on advice / determination | - To NIL | |
| 4 | Penalties on the import of goods | |
| i. | Penalties on Approved Road Transporter. Where goods are imported through an Approved Road Transporter and- | equal to the amount of tax owed on the goods. [on The Approved Road Transporter] |
| (a) Entry tax has not been paid by the due date, or | ||
| (b) the goods are not deposited in an Approved Warehouse. | ||
| Penalties on transporters: | ||
| ii. | Any person attempts to import goods in Arunachal Pradesh on which due entry tax has not been paid. | equal to the amount of tax unpaid |
| 5 | Records and accounts | |
| i. | Failure to prepare or retain required records and accounts. Where a person fails to prepare records and accounts in the prescribed manner or for prescribed period; | Rupees fifty thousand or twenty per cent of the tax deficiency, whichever is the greater. |
| ii. | Failure to produce requested information. Any person who fails to comply with a requirement made by the Commissioner to furnish information. | Rupees fifty thousand. |
| iii. | Preparing accounts that are false, misleading or deceptive. Where a person prepares records and accounts in a manner that is false, misleading or deceptive. | Rupees one lakh or the amount of the tax deficiency whichever is the greater. |
| iv. | Failure to have accounts audited. If any dealer liable to have his accounts audited fails to furnish a true copy of such report within the time. | Rupees ten thousand |
| 6 | Invoices. | |
| i | Incomplete or incorrect Invoices. Where a person has issued a tax or retail invoice with incomplete or incorrect particulars or has failed to account correctly it in his books of account. | Rupees fifty thousand or twenty per cent of the tax deficiency, whichever is the greater. |
| ii | Unauthorised issue of tax invoice. Where a person has who is not authorised to issue a tax invoice has issued a tax invoice. | Rupees one lakh or the tax deficiency, whichever is the greater. |
| 7 | PPenalties on defaults arising out of Approved Warehouses: | |
| i | Where, goods are removed from the Approved Warehouse for delivery to a person in Arunachal Pradesh, or the goods remain in the Approved Warehouse more than one month after their deposit, | equal to the amount of tax owed on the goods [on the operator of the Approved warehouse] |
| ii | Tax and penalties on importers of goods removed from Approved Warehouses. Where goods stored in an approved warehouse are sold to a person in Arunachal Pradesh, are delivered to a person in Arunachal Pradesh or are otherwise used or consumed in Arunachal Pradesh | equal to the amount of tax owed on the goods. [ on the importer of goods] |
| 8 | Misrepresent destination or status of goods at check-post. | |
| i | Where the person in charge of a goods vehicle misrepresents or gives incorrect information at the check posts- | Rupees ten thousand |
| ii. | Where goods are being carried by a transporter without the documents or without proper and genuine documents | equal to the amount of tax payable on such goods |
| 9 | General administration | |
| i | Obstruct or hinder tax officials. Any person who intentionally hinders, impedes or obstructs the Commissioner in the performance of any functions | Rupees one lakh. |
| 10 | False, misleading or deceptive statements | |
| i | Any person who makes a statement to the Commissioner which is false, misleading or deceptive in a material particular; or omits from a statement made to the Commissioner any matter or thing without which the statement is false, misleading or deceptive in a material particular | Rupees one lakh or the tax deficiency, whichever is the greater. |
