OFFENCES
AND PENALTIES UNDER
THE TAMIL NADU VALUE ADDED TAX ACT 2006
THE TAMIL NADU VALUE ADDED TAX ACT 2006
Nature of Offence
|
Quantum of penalty
|
If no
return is submitted by the dealer, the assessing authority shall, after
making such enquiry as it may consider necessary, assess the dealer to the
best of its judgement, subject to such conditions as may be prescribed:
Provided
that before taking action under the sub-section (4) of Section 22, the dealer
shall be given a reasonable opportunity of being heard.
Section 22(4)
|
In
addition to the tax assessed under sub-section (4) of Section 22, the
assessing authority shall, in the same order of assessment passed under
sub-section (4) of Section 22, or by a separate order, direct the dealer to
pay by way of penalty, a sum which shall be, in the case of failure to submit
return, one hundred and fifty per cent of the tax
assessed
Section 22(4)
|
Input
Tax credit availed wrongly
Section 27(2)
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The assessing authority shall direct the dealer to
pay as penalty a sum which shall be three
hundred per cent of the tax due in
respect of such claim in
addition to the tax determined under Section 27(2) of the Tamil Nadu Value Added Tax
Act, 2006. (w.e.f.29.1.2016)
Section 27(4)
|
Where
any dealer produces false bills, vouchers, declaration certificate or any
other documents with a view to support his claim of input tax credit or
refund
Section 27(2)
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The assessing authority shall direct the dealer to
pay as penalty a sum which shall be three
hundred per cent of the tax due in
respect of such claim in
addition to the tax determined under Section 27(2) of the Tamil Nadu Value Added Tax
Act, 2006. (w.e.f.29.1.2016)
Section 27(4)
|
If the
return submitted by a dealer under clause (a) of Section 29 (Price
variation Return) of the TNVAT Act, 2006 appears to the assessing authority
to be incorrect or incomplete, the assessing authority shall, after making
such enquiry, as it may consider necessary and after taking into account of
all relevant materials gathered by it, assess the dealer to the best of its
judgement.
Provided
that before taking action under Section 29 of the TNVAT Act, 2006, the dealer
shall be given a reasonable opportunity to prove the correctness and
completeness of the return.
Section 29(d)
|
In making the assessment under clause (d) of
Section 29 of the TNVAT Act, 2006, in addition to the tax assessed, the
dealer is liable to pay a penalty at the rate specified in sub-section (3) of
Section 27 (which shall be 50% of the tax due if such turnover is below
10% and 100% of the tax due if the turnover is abpve 10% but below 50% and
150% if the turnover is above 50% of the tax due on the assesable turnover
that was wilfilly not disclosed) if there is wilful non-disclosure of
assessable turnover by the dealer.
Section 29(f)
|
If no
return is submitted by the dealer (Price Variation Return) under clause (a)
of Section 29 of the TNVAT Act, 2006, the assessing authority may, within
five years within which such returns must have been submitted, proceed to
assess the tax payable on the amount referred to in the said clause.
Provided
that before making any assessment under Section 29 of the TNVAT Act, 2006,
the assessing authority shall give the dealer an opportunity of being heard
and make such other enquiry as it may consider necessary.
Section 29(e)
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In addition to the tax assessed under clause (e)
of TNVAT Act, 2006, the dealer is liable to pay a penalty, at the specified
in sub-section (5) of Section 22 (a sum which shall be, in the case of
failure to submit return, one hundred and fifty per cent of the tax assessed)
and the assessing authority shall in the same order of assessment or by a
separate order direct the dealer to pay penalty.
Section 29(f)
|
Being an assessee under
TNVAT Act, fails to submit a return as required
by the provisions of
TNVAT Act, 2006 or Rules made
thereunder,
Section
71(1)(a)
|
On conviction
by a Magistrate be liable to fine which may extend to five hundred
rupees.
Section
71(1)(b)
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Being a person obliged to register
himself as a dealer under
TNVAT Act, 2006 does not get himself registered,
Section
71(1)(b)
|
On conviction
by a Magistrate be liable to fine which may extend to five hundred
rupees.
Section
71(1)(b)
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Any person who collects any amount by way of tax or purporting to be by way of
tax
under TNVAT Act, 2006
in contravention of
the provisions of sub-section (1) of
section 40 of TNVAT Act, 2006
Section 71(2)
|
On conviction by a Magistrate
be liable to fine
which may extend to
one thousand rupees
Section 71(2)
|
Wilfully submits an
untrue return under TNVAT Act, 2006 and rules made thereunder.
Section 71(3)(a)
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Liable to a fine which may extend to
two
thousand rupees and
in
the event of a second or subsequent
conviction, to
simple imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section 71(3)(a)
|
Wilfully submits an
untrue return under TNVAT Act, 2006 and rules made thereunder.
Section 71(3)(a)
|
Liable to a fine which may extend to
two
thousand rupees and
in
the event of a second or subsequent
conviction, to
simple imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section 71(3)(a)
|
Being an assessee
under TNVAT Act 2006 fails to submit a return as required by the provisions
of the TNVAT Act, 2006 or Rules made thereunder
Section 71(3)(a)
|
Liable to a fine which may extend to
two
thousand rupees and
in
the event of a second or subsequent
conviction, to
simple imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section 71(3)(a)
|
Fraudulently evades the payment of any tax assessed on him or
any fee or other amount due from him under
TNVAT Act, 2006
Section
71(3)(b)
|
Liable to a fine which may extend to
two
thousand rupees and
in
the event of a second or subsequent
conviction, to simple
imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section
71(3)(b)
|
Dishonestly objects to a notice issued to him under sub- section (1)
of section 27
of TNVAT Act, 2006
Section 71(3)(c) |
Liable to a fine which may extend to
two
thousand rupees and
in
the event of a second or subsequent
conviction, to simple
imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section
71(3)(c)
|
Being a person obliged to keep and maintain true and correct account and record under sub-section (1)
of section 64 under TNVAT Act, 2006 fails to
keep and maintain such account or record
Section 71(3)(d)
|
Liable to a fine which may extend to
two
thousand rupees and
in
the event of a second or subsequent
conviction, to simple
imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section 71(3)(d)
|
Keeps any books of account at any place in contravention of sub-section (2) of
section 64
under TNVAT Act, 2006
Section 71(3)(d)
|
Liable to a fine which may extend to
two
thousand rupees and
in
the event of a second or subsequent
conviction, to simple
imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section 71(3)(d)
|
Moves the goods from one place to another
in pursuance of a sale or purchase or otherwise in contravention of
the provisions of sub-section (3) of section 64
under TNVAT Act, 2006 without a bill of
sale or delivery note or such other documents
as may be prescribed
Section 71(3)(d)
In the newly introduced e-C Tax Portal, for
movement of goods from one place to another, new forms were prescribed and
the same should accompany with the consignment. The Forms should be generated
electronically in the e-C Tax new portal ctd.tn.gov.in of the Tamil Nadu
Commercial Taxes Department. The details of forms to accompany with the
consignments were given at the end of the table in detail.
|
Liable to a fine which may extend to
two
thousand rupees and
in
the event of a second or subsequent
conviction, to simple
imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section 71(3)(d)
|
Willfully acts in contravention of any of the provisions of TNVAT
Act, 2006
Section 71(3)(e)
|
Liable to a fine which may extend to
two
thousand rupees and
in
the event of a second or subsequent
conviction, to simple
imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section 71(3)(e)
|
After purchasing any
goods in respect of
which he has
made a declaration fails without reasonable excuse
to make use of the goods for the declared purpose
under TNVAT Act, 2006
Section 71(3)(f) |
Liable to a fine which may extend to
two
thousand rupees and
in
the event of a second or subsequent
conviction, to simple
imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section 71(3)(f)
|
Makes any
statement
or declaration in
the application for
registration, submitted
to the registering authority, which he
knows or has reason to believe to be
false under TNVAT Act, 2006
Section 71(3)(g)
|
Liable to a fine which may extend to
two
thousand rupees and
in
the event of a second or subsequent
conviction, to simple
imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section 71(3)(g)
|
Willfully acts in contravention of the undertaking given under
sub-section (9) of section 67
of TNVAT Act, 2006
Section 71(3)(h)
|
Shall on conviction by a Magistrate
liable to a fine which may
extend to two
thousand rupees and
in
the event of a second or subsequent
conviction, to simple
imprisonment
which may extend to six months or a fine which
may extend to two thousand rupees or both
Section 71(3)(h)
|
Any person who prevents or obstructs an officer from exercising his powers or discharging his duties under section 65 or section 66
of TNVAT Act
Section 71(4)
|
On conviction, be
liable
to
simple imprisonment which
may extend to six
months, or a
fine which may
extend to two thousand rupees or both.
Section 71(4)
|
Any owner or other person in charge
of a boat or a goods
vehicle who fails to carry with him any of the records
or
documents specified
in
section 68 or section 69
under TNVAT Act
Section 71(5)(a)
In the newly introduced e-C Tax Portal, for
movement of goods from one place to another, new forms were prescribed and
the same should accompany with the consignment. The Forms should be generated
electronically in the e-C Tax new portal ctd.tn.gov.in of the Tamil Nadu
Commercial Taxes Department. The details of forms to accompany with the
consignments were given at the end of the table in detail.
|
On conviction, be liable to
simple imprisonment which
may extend to
six months or fine which may
extend to two thousand rupees or both.
Section 71(5)(a)
|
The owner of the boat or the goods vehicle,
if
he was not in charge of the boat or the goods vehicle, at the time of the commission of an offence under clause
unless he proves that the offence was committed without his knowledge
or
that he exercises all
due diligence to prevent the
commission of such offence
Section 71(5)(b)
In the newly introduced e-C Tax Portal, for
movement of goods from one place to another, new forms were prescribed and
the same should accompany with the consignment. The Forms should be generated
electronically in the e-C Tax new portal ctd.tn.gov.in of the Tamil Nadu Commercial
Taxes Department. The details of forms to accompany with the consignments
were given at the end of the table in detail.
|
On conviction, be liable to simple imprisonment which may extend to
six months or fine which may
extend to two thousand rupees or both.
Section 71 (5)(b)
|
If the driver or any other person in-charge
of
any goods vehicle or
boat, refuses on
demand by the officer in-charge
of the check-post or barrier or the officer empowered under sub-section (2) of section 67 of
TNVAT Act to give his name and address or the name and address of the owner of the vehicle or boat or of the consignor and consignee
of
the goods or gives any name
and address which he knows
or
has reason to believe to be false, or if the driver refuses on demand by such officer, to produce
for inspection his
driver's licence
Section 71(6)
|
On conviction,
be liable to simple imprisonment, which may extend to six
months or
a
fine which
may
extend
to
two
thousand rupees or both
Section 71(6)
|
Any person who makes any statement or declaration
in
any of the
records or documents specified in section 68 or section 69
of TNVAT Act as the case may
be, which statement or declaration
he
knows or has reason to believe to be false,
Section 71(7)
In the newly introduced e-C Tax Portal, for
movement of goods from one place to another, new forms were prescribed and
the same should accompany with the consignment. The Forms should be generated
electronically in the e-C Tax new portal ctd.tn.gov.in of the Tamil Nadu
Commercial Taxes Department. The details of forms to accompany with the
consignments were given at the end of the table in detail.
|
On conviction, be liable to simple imprisonment which may extend to six
months, or
a
fine which may extend to two thousand
rupees or both
Section 71(7)
|
Any person who is in any way knowingly concerned in any
fraudulent evasion or attempt at evasion or abetment of evasion of any tax,
payable in respect of the sale or purchase of any goods under this Act,
Section 71(8)
|
On conviction, be liable to simple imprisonment which may extend to six months or a
fine which may extend to
two thousand rupees or both
Section 71(8)
|
Any person who knowingly issues a false bill, voucher, declaration,
certificate or other document with a view to support any dealer to claim
exemption or reduction in rate of tax on the sale or purchase of any goods under TNVAT Act,
2006
Section
71(9)
|
On conviction, be liable to simple imprisonment which
may extend to three months and in the event of a second or subsequent conviction to rigorous imprisonment for six months.
Section
71(9)
|
Failure to pay tax
under the Tamil Nadu Value Added Tax Act, 2006
Section 71(1)(a)
|
In
addition to tax so payable, a sum of money not exceeding Rupees two thousand or double the amount of
tax payable, whichever is greater
Section 71(1)(a)
|
Attempt to evade tax
under the Tamil Nadu Value Added Tax Act, 2006
Section 71(1)(a)
|
In
addition to tax so payable, a sum of money not exceeding Rupees two thousand or double the amount of
tax payable, whichever is greater
Section 71(1)(a)
|
Evasion of tax or any
tax payable under the Tamil Nadu Value Added Tax Act, 2006
Section 72(1)(a)
|
In
addition to tax so payable, a sum of money not exceeding Rupees two thousand or double the amount of
tax payable, whichever is greater
Section 71(1)(a)
|
Committing any other
offences under Tamil Nadu Value Added Tax Act 2006
Section 72(1)(b)
|
A
sum of money not exceeding Rupees
two thousand
Section 72(1)(b)
|
Failure to get dealer’s
accounts audited and failure to submit a report of such audit within the
prescribed period (i.e. on or before the 31st December of the
succeeding year of assessment) under sub-section (1) of Section 63 of the
Tamil Nadu Value Added Tax Act, 2006
Section 63-A (2)
|
A
penalty of Rupees ten thousand,
in addition to any tax payable in respect of the said period.
Section 63-A (2)
|
In the newly introduced e-C Tax Portal, for
movement of goods from one place to another, new forms were prescribed and the
same should accompany with the consignment. The Forms should be generated
electronically in the e-C Tax new portal ctd.tn.gov.in of the Tamil Nadu
Commercial Taxes Department.
When goods were moved from one place to
another with a goods vehicle record or trip sheet or log book, shall carry a
bill of sale or delivery note in Form JJ generated from the website of the
Commercial Taxes Department along with transporters way bill in Form MM
generated from the website of the Commercial Taxes Department.
[Rule 15(3) (a)]
In case
of movement of goods from one place of business to another of a dealer either
for sale or any other purpose, shall carry a delivery note in Form JJ and a
transporters declaration in electronic Form MM.
[Rule 15(15) (a) (IV)]
If the
goods notified as evasion prone commodities and moved into the State, shall
carry a sale bill,
by an advance inward delivery note in Form JJ electronically generated by the
buyer or receiver of such goods and sent to the transporter or person in charge
of the vehicle carrying such goods, a copy of such electronically generated
delivery note in Form JJ shall be furnished at the entry check post or barrier
or to the officer on inspection.
[Rule 15(18) (a)
(v)]
Under
the Tamil Nadu Value Added Tax Act, 2006 a new sub-section 67-A has been
introduced.
Section 67-A.
Production
of Advance Inward Way Bill.—The driver or any other person in charge of the
goods vehicle entering into the State from a place outside the State to a
destination within the State, carrying any of the goods as may be notified by
the Government, from time to time, shall, on demand, produce at the Check post
on its route or before such authority as may be prescribed in this regard,
advance inward bill in such form and in such manner as may be prescribed.
Under
Section 67-A of the Tamil Nadu Value Added Tax Act, 2006 (Tamil Nadu Act 32 of
2006), the Governor of Tamil Nadu has notified the following goods for the
purpose of the said section vide
G.O.Ms.No.15, Commercial Taxes and Registration (B1), dated 29th
January, 2016 published as per Gazette Notification No. II (1)/CTR/ (d-3)/2016.
a) Refrigerators,
air-conditioners, air-coolers and water-coolers;
b) Alcoholic Liquors of all
kinds for human consumption falling under the second schedule to the Act;
c)
All kinds of ferrous scraps;
d) All types plastic
granules, plastic raw materials including mater batches, and scraps of all
kinds of plastic products;
e) Tobacco products falling
under the Second Schedule to the Act;
f)
Cement, including white cement and their substitutes and
concrete mixture;
g) Granite blocks, ceramic
times, and marbles of all kinds;
h) Electrical goods of all
kinds;
i)
Iron and Steel as specified in clause (iv) of Section 14 of
the Central Sales Tax Act, 1956 (Central Act 74 of 1956), including scrap,
stainless steel sheets, iron and steel products;
j)
Cellular Telephone (Mobile Phone) including smart phones and
its accessories;
k)
Oil seeds as specified in clause (vi) of section 14 of the
Central Sales Tax Act, 1956 (Central Act 74 of 1956);
l)
Raw Rubber of all grades and qualities;
m) Sanitary equipments and
fittings of every description;
n) Timbers, plywood and wood
based products;
o) Vegetable oils including
refined vegetable oils; and
p) Cotton and Readymade
garments.
After
introduction of Section 67-A, and relevant commodities were notified under the
Tamil Nadu Value Added Tax Rules, 2007 and Rule 18 (a) substituted as shown
below:
Rule 18 (a):
For
the purpose of Section 67-A, 68 and 69, the owner or other person in charge of
a goods vehicle or boar shall carry—
i.
A goods vehicle record, a trip sheet or a log book;
ii.
A bill of sale or a delivery note in electronic form JJ, a
transporter’s declaration in electronic Form MM and the declaration in
electronic Form KK, in the case of movement of goods by clearing and forwarding
agents;
iii.
A certificate from the Village Administrative Officer when
the goods under transport are claimed to be agricultural produce other than
sugarcane grown in his own land or on a land in which he has interest or a
letter signed by the agriculturist and by the registered dealer to whom the
agricultural produce is transported along with the delivery note in electronic
Form JJ of the registered dealer;
iv.
A delivery note in electronic Form JJ and a transporter’s
declaration in electronic Form MM, in the case of movement of goods from one
place of business to another of a dealer either for sale or any other purpose;
v.
The movement of such goods, as may be notified by the
Government from time to time as evasion prone, into the State, shall be
accompanied, along with the sale bill, by an advance inward delivery note in
Form JJ, electronically generated by the buyer or receiver of such goods and
sent to the transporter or person in charge of the vehicle carrying such goods. A copy of such electronically generated
delivery note in form JJ shall be furnished at the entry check post or barrier
or to the officer on inspection.
According
to the above amendment dealers buying or receiving the goods mentioned above
should generate an advance inward way bill in the Form JJ electronically
generated and sent to the transporter or person in charge of the vehicle
carrying such goods and copy of such electronically generated delivery note in
Form JJ shall be furnished at the entry check post or barrier or to the officer
on inspection.
The
owner or other person in charge of a goods vehicle or boat moving goods under
sections 67-A, 68 and 69 shall carry a goods vehicle record, a trip sheet or a
log book.
A bill of sale or delivery note in
electronic Form JJ in the case of movement of goods by a clearing and
forwarding agent
A certificate from the Village
Administrative Officer when the goods under transport are claimed to be
agricultural produce other than sugarcane grown in his own land or on a land in
which he has interest or a letter signed by the agriculturist and by the
registered dealer to which the agricultural produce is transported along with
the delivery note in electronic form JJ of the registered dealer
[Rule 15
(15)(a)(iii)]
Every registered dealer who uses
delivery note in Form JJ shall
maintain a register in Form NN. If any such form is lost, destroyed or
stolen, the dealer shall report the fact to the registering authority, within a
week of such loss, destruction or theft and shall make appropriate entries in
the remarks column of the said register and take such other steps to issue
public notice of the loss, destruction or theft as the registering authority
may direct.
[Rule 15(20)]
https://ctd.tn.gov.in/documents/10184/10943/Gazette+No.22/5d286b66-7d2c-4438-874d-cfc990c54aaf?version=1.0
https://ctd.tn.gov.in/documents/10184/10943/Gazette+No.22/5d286b66-7d2c-4438-874d-cfc990c54aaf?version=1.0
CENTRAL
SALES TAX ACT 1956
Section 9 (2-A) All the provisions relating to
offences, interest and penalties including provisions relating to penalties in
lieu of prosecution for an offence or in additions to the penalties or
punishment for an offence but excluding the provisions relating to matters
provided for in sections 10 and 10-A of General sales Tax law of each state
shall, with necessary modifications, apply in relation to the assessment,
reassessment, collection and the enforcement of payment of any tax required to
be collected under this Act in such State or in relation to any process
connected with such assessment, reassessment, collection or enforcement of
payment as if the tax under this Act were a tax under such sales tax law.
Section 9 (2-B) If the tax payable by any dealer
under this Act is not paid in time, the dealer shall be liable to pay interest
for delayed payment of such tax and all the provisions relating to due date for
payment of tax, rate of interest for delayed payment of tax and assessment and
collection of interest for delayed payment of tax, of the General Sales Tax law
of each State, shall apply in relation to due date for payment of tax, rate of
interest for delayed payment of tax, and assessment and collection of interest
for delayed payment of tax under this Act in such States as if the tax and the interest
payable under this Act were a tax and an interest under such sales tax law.