Penalties under DVAT Act

PENALTIES UNDER DVAT ACT  

Penalties due to Tax Deficiency and Non Compliance of Provisions.

Tax Deficiency :          Section 86 ( 1 ) – Difference between Tax Properly Payable in accordance with the provisions of the Act and the amount of tax paid in respect of the calendar month.

Tax Properly Payable includes the amount of tax u/s 32. It means tax assessed u/s 32 included in Tax Properly Payable.

Due tax paid after the period specified under sub-section ( 4 ) of section ( 3 ) is also a Tax Deficiency. Means tax as to be paid upto 21 pertaining to previous month, paid after 21 will be included in the definition of Tax Deficiency.

          

Penalties Due to Non-Compliance of Provisions
S.No.	Section	Cause of Penalty	Quantum of Penalty
1.	86 ( 4 )	Fail to Apply Registration	Rs.1000 per day maximum upto One Lakh
2.	86 ( 5 )	Fail to furnish Amendment Application	Rs.200 per day maximum upto ten thousand
3.	86 ( 6 )	Fail to apply for cancellation of registration as required u/s 22 (2) or fails to surrender certificates of registration required u/s 22 (7)	Rs.200 per day maximum upto twenty five thousand
4.	86 ( 9 )	Fails to furnish return by due date or Fails to furnish with a return any other document that is required to be furnished with the return or Fails to furnish revised return by the due date or Fails to comply with a requirement in a notification issue u/s 70.	Rs.200 per day maximum upto fifty thousand. Default in furnishing both retuns ( VAT & CST ) attracts penalty upto one lakh.
5.	86 (13)	Fails to prepare the prescribed or notified records and accounts; Fails to retain the prescribed or notified records at the principal place of business as recorded in his certificate of registration etc..	Penalty a sum of fifty thousand or twenty percent of the tax deficiency if any whichever is greater.
6.	86 (14)	Non compliance with the requirement u/s 59(2), 59(3) of the Act	Penalty Rs.50000.00
7.	86 (15)	Prepares Records and Accounts in a manner that is false, misleading or deceptive.	Penalty Rs.one lakh or the amount of tax deficiency, if any, whichever is greater.
8.	86 (16)	Issued Tax Invoice or Retail Invoice with incomplete or incorrect particulars or has failed to account it (Tax or Retail Invoice) correctly in his books of account.	Rs.5000 or twenty per cent of the tax deficiency.
9.	86 (17)	A person issues Tax Invoice for which he is not authorized.	Penalty Rs.one lakh or the amount of tax deficiency, if any, whichever is greater.
10.	86 (18)	Non compliance of Section 49 i.e. fails to submit Audited Balance Sheet upto stipulated time.	Penalty equal to one percent of turnover or one lakh rupees whichever is less.
11.	86 (19)	For Transporter – Being carried goods without the documents or without proper and genuine documents.	Penalty 20% for the value of such goods.
12.	86 (20)	A person makes a statement to the Commissioner which is false, misleading or deceptive or omits from a statement without which the statement is false, misleading or deceptive.	Penalty rupees fifty thousand or the amount of tax deficiency whichever is greater.
13.	86 (21)	Casual Dealer not applied for Registration within stipulated period.	Penalty rupess five thousand per day subject to maximum upto rupess one lakh.
14.	86 (22)	Casual Dealer fails to furnish the return by the due date or fails to furnish documents required to be furnished with the return.	Penalty rupees one thousand per day subject to maximum upto twenty five thousand rupees.
15.	86 (23)	A person in any capacity organizes any exhibition-cum-sale in Delhi and fails:- (a)   to furnish about goods brought or kept in stock or sold by any participant before or during or after the exhibition-cum-sale; or (b)   to ensure that all such participants have obtained registration under the Act and paid due tax; or (c)    to permit inspection of the business premises or goods or account and records of the participants; or (d)   to permit inspection of the accounts and records of the organizer in respect of the exhibition-cum-sale.	Penalty rupees fifty thousand or a sum equal to the amount of tax payable on such goods if such goods were sold in Delhi, whichever is greater.
16.	86 (24)	Residuary section – Any contravention under any of the provisions of the Act or Rules for which no penalty is separately provided under the Act.	Penalty rupees ten thousand.
17.	87 (5)	The penalty has not been remitted in full after objection and the person is subsequently assessed to a further penalty in respect of the same or a substantially similar failure occurring on another occasion, the penalty otherwise due under this Act shall be increased by	( i ) on first subsequent offence, fifty percent of the specified penalty and ( ii ) on second and any further subsequent offence, one hundred percent of the specified penalty.
18.	95	Non compliance of section 95 in regard of not providing name of Manager, IEC Code and PAN	Penalty rupees fifty thousand subject to a maximum of fifty thousand rupees.

Penalties Due to Tax Deficiency
S.No.	Section	Cause of Penalty	Quantum of Penalty
1.	86 (7)	Falsely represent himself as a registered dealer	Amount of tax wrongly collected or one lakh whichever is the greater.
2.	86 (8)	Voluntary Registered Dealer failed to undertake activities within the period in his application or has failed to comply with any of the restrictions or conditions subject to which such (voluntary) registration was granted.	Rs. ten thousand
3.	86 (10)	Furnishes return a false, misleading  or deceptive in material or Omits from a return furnished any matter or thing without which the return is false, misleading or deceptive in material.	Ten thousand or amount of the Tax Deficiency whichever is the greater.
4.	86 (11)	A dealer claims Tax Credit for which he is not entitled or claimed greater tax credit than is allowed.	Amount equal to Tax Credit or ten thousand which is greater
5.	86 (12)	If Tax Deficiency arisen	Penalty amount One percent of the Tax Deficiency per week or rupees one hundred week, whichever is higher, for the period of default.