Penalty for repeated miscalculation in sales tax return

Penalty for repeated miscalculation in sales tax return

A person who repeats erroneous calculation in the sales ax return during a year and he pays less than actual sales tax under Section 7 and Section 26 of the Sales Tax Act, 1990 then he is liable to pay a penalty of Rs5,000 or 3 per cent of the amount of the tax involved.

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(6) 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: –

6. Any person who repeats erroneous calculation in the return during a year whereby amount of tax less than the actual tax due is paid.

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

 (Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

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