A person is liable to imprisonment where he is required to get registered for sales tax under Section 14 of the Sales Tax Act, 1990, but he makes supplies without making an application for the registration.
Following is the text of section 33(7) of the Sales Tax Act, 1990:
33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –
7. Any person who is required to apply for registration under this Act fails to make an application for registration before making taxable supplies.
Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax involved, whichever is higher:
Provided that such person who is required to get himself registered under this Act, fails to get registered within sixty days of the commencement of taxable activity, he shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to an amount equal to the amount of tax involved, or with both.
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