Value Added Tax Act, 1996

29. Penalties: Amended by the First Amendment.(1) If any person commits any of the following offenses, the Tax Officer may impose a penalty as follows:-

Amended by the Finance Act, 2079.(a) For violating an order given by the Tax Officer for registration under Section 5a, or violating sub-section (1) or (2) of Section 10, or failing to register under sub-section (1) of Section 10a, sub-section (1) of Section 10b, and sub-section (1) of Section 10b1, twenty thousand rupees for each offense;

(b) For violating Amended by the Finance Act, 2076.sub-section (5) or (6) of Section 10, one thousand rupees for each offense;

Added by the Finance Act, 2075.(b1) For failing to keep a tax register or not keeping a tax register in the prescribed place under this Act or rules made under this Act, two thousand rupees for each offense;

Added by the Finance Act, 2076.(b2) For violating sub-section (7) of Section 10, ten thousand rupees for each offense;

Amended by the Finance Act, 2076.(c) For violating sub-section (1) of Section 14 by not issuing an invoice, ten thousand rupees for each offense, and for not taking an invoice, one thousand rupees for each offense;

Added by the Finance Act, 2076.(c1) For violating sub-section (4) of Section 14, ten thousand rupees for each offense;

Amended by the Finance Act, 2075.(d) For violating Section 15, one hundred percent of the tax collected;

Amended by the Finance Act, 2075.(e) For not maintaining updated accounts of transactions under sub-section (1) of Section 16, ten thousand rupees, and for not allowing inspection of transaction accounts, twenty thousand rupees for each offense;

(f) For violating sub-section (2) of Section 16, up to five thousand rupees;

(g) For violating sub-section (3) or (4) of Section 16, ten thousand rupees;

Omitted by the Finance Act, 2078.(g1)

(g2) If a taxpayer who has obtained or not obtained approval to issue electronic invoices is found using software capable of deleting or correcting data, five hundred thousand rupees;

(g3) If a person manufacturing, installing, or operating software or equipment for issuing electronic invoices fails to comply with the procedure issued by the Department under Section 14a, five hundred thousand rupees;

(h) For violating the provisions of Section 18, 0.05 percent of the tax leviable per day or one thousand rupees per tax period, whichever is higher;

(j) For obstructing or opposing any act under Section 23, five thousand rupees for each offense;

(n) For under-invoicing, two thousand rupees for each invoice or the penalty leviable under sub-section (2), whichever is higher;

Provided that, if the office deems necessary, goods that have been under-invoiced may be purchased as prescribed.

(t) For violating this Act or rules made under this Act, one thousand rupees for each offense.

(1a) If any person reduces tax liability by failing to comply with this Act or rules made under this Act, the Tax Officer may impose a penalty of up to twenty-five percent of the tax evaded, based on the basis prescribed by the Department.

(1b) If, during a stock verification of any taxpayer, goods are found in excess of those recorded in the purchase account, the Tax Officer may assess the income from such goods and, after determining the market value of such excess goods, impose a penalty amounting to fifty percent of such value.

(1c) If a seller issues an invoice without transferring the goods or services, the seller may be punished with a penalty of fifty percent of the invoice value Added by the Finance Act, 2076.or imprisonment for up to 6 months or both.