Penalty for failure to maintain sales tax record

Penalty for failure to maintain sales tax record

The Sales Tax Act, 1990 has prescribed a penalty of Rs10,000 or five percent of the amount tax involved as penalty for failing to maintain records under Section 22 and Section 24 of the Act.

The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

Following is the text of section 33(8) 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: –

8. Any person who fails to maintain records required under this Act or the rules made there under.

Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax involved, whichever is higher.

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