Section 33: Offences,Penalties and Punishment

33. Offences, Penalties and Punishment.– 458[...] Whoever commits any offence described in column (1) of the Table below 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 in column (2) thereof: – TABLE Offences Penalties 459[and Punishment] Section of the Act to which (1) (2) offence has 1. Where any person Such person shall pay a penalty of 460[ten] thousand rupees: reference fails to furnish a (3) return within the due Provided that in case a person 26 date. files a return within 461[ten] days of the due date, he shall pay a 26 4631A.Where any online penalty of 462[two] hundred marketplace, rupees for each day of default. payment Such person shall be liable to intermediary or pay: courier fails to furnish prescribed (i) Penalty of three lac rupees for the first default if he fails to furnish the Offences Penalties 459[and Punishment] Section of the Act to which (1) (2) offence has monthly statement prescribed statement for within due date two consecutive months; reference (3) 1B. Where any online (ii) Penalty of one million 14 marketplace, courier rupees for each subsequent allow use of its default within one year. 23 services in the course 3, 7 and 23 of e-commerce by Such person shall be liable to unregistered persons pay: 2. Any person who fails (i) Penalty of five lac rupees to issue an invoice for first default; when required under this Act. (ii) Penalty of one million rupees for each subsequent 3. Any person who un- default. authorizedly issues an invoice in which an Such person shall pay a penalty amount of tax is of five thousand rupees or three specified. per cent of the amount of the tax involved, whichever is higher. Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of t he tax involved, whichever is higher. 4. Any person who fails Such person shall pay a penalty 14 of five thousand rupees. 3, 6, 7 and 48 to notify the changes Such person shall pay a penalty of material nature in of ten thousand rupees or five per cent of the amount of the tax the particulars of involved, whichever is higher: registration of Provided that, if the amount of tax or any part thereof is paid taxable activity. within 464[ten] days from the due date, the defaulter shall pay 5. Any person who fails to deposit the amount of tax due or any part thereof in the time or manner laid down under this Act or rules or orders made there under. Offences Penalties 459[and Punishment] Section of the (1) Act to which (2) offence has a penalty of five hundred rupees for each day of default: reference (3) Provided further that no penalty shall be imposed when any miscalculation is made for the first time during a year: Provided further that if the amount of tax due is not paid even after the expiry of a period of sixty days of issuance of the notice for such payments by an officer of 465[Inland Revenue, not below the rank of Assistant Commissioner Inland Revenue], the defaulter 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 amount equal to the amount of tax involved, or with both. 6. Any person who Such person shall pay a penalty 7 and 26 repeats erroneous of five thousand rupees or three calculation in the per cent of the amount of the tax return during a year involved, whichever is higher. whereby amount of tax less than the actual tax due is paid. 7. Any person who is Such person shall pay a penalty of ten thousand rupees or five required to apply for per cent of the amount of tax involved, whichever is higher: registration under this Provided that such person who Act fails to make an is required to get himself registered under this Act, fails application for registration before making taxable supplies. Offences Penalties 459[and Punishment] Section of the (1) Act to which (2) offence has to get registered within sixty days of the commencement of reference taxable activity, he shall, further (3) 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. 8. Any person who fails Such person shall pay a penalty 22 and 24 to maintain records of ten thousand rupees or five 25 required under this per cent of the amount of tax Act or the rules made involved, whichever is higher. there under. such person shall pay a penalty 9. Where a registered of five thousand rupees; person who, without any reasonable cause, such person shall pay a penalty in non compliance with of ten thousand rupees; and the provisions of section 25, – – such person shall pay a penalty of fifty thousand rupees. (a) fails to produce the record on receipt of first notice; (b) fails to produce the record on receipt of second notice; and (c) fails to produce the record on receipt of third notice. 10. Any person who fails Such person shall pay a penalty 26 to furnish the of ten thousand rupees. information required by the Board through a notification issued under sub-section (5) of section 26. Offences Penalties 459[and Punishment] Section of the Act to which (1) (2) offence has 11. 466[Omitted] Such person shall pay a penalty reference of twenty five thousand rupees (3) 12. Any person who or one hundred per cent of the amount of tax involved, 25, 38 , 470[38A denies or obstructs whichever is higher. 468[Without and 40B] prejudice to above, he shall also the access of an be liable,] upon conviction by a 2(37) Special Judge, to imprisonment authorized officer to for a term which may extend to five years, or with fine 469[which the business may extend to an amount equal to the amount of tax evaded or premises, registered sought to be evaded], or with both. office or to any other (i) Such person shall be place where records liable, upon conviction by a Special Judge, to are kept, or imprisonment for a term which may extend upto otherwise refuses five years. Such person shall also be liable to pay access to the stocks, the amount equal to the loss of tax caused as accounts or records confirmed by the Special Judge from such amount or fails to present the reported under sub section (11) of section same when required 37B, including one hundred percent penalty under section 25, 38 of tax loss and default surcharge under section 467[38A or 40B]. 34 of the Act. 47113. (i) Any person who commits or, causes to commit tax fraud as defined under sub- clauses (a), (b), (c), (d), (e) or (f) of clause (37) of section 2. (ii) Any person who commits or, causes to commit tax fraud as Offences Penalties 459[and Punishment] Section of the Act to which (1) (2) offence has defined under sub- (ii) Such person shall be liable, clauses (g), (h), (i), (j) or reference (k) of clause (37) of upon conviction by a (3) section 2 Special Judge, to imprisonment for a term 47213A. Any person who which may extend upto 2(1), 2(37), five years. Such person 50A”; abets or connives shall also be liable to pay the amount equal to the in committing loss of tax caused as confirmed by the Special tax fraud as Judge from such amount reported under sub section defined in (11) of section 37B, including one hundred section 2(37) or percent penalty of tax loss and default surcharge any offence under section 34 of the Act. Such person shall be liable, warranting upon conviction by a Special Judge, to imprisonment for a prosecution term which may extend to five years or with fine which may under the Act. extend to ten million rupees, or with both. 14. Where any person 48 Such person shall pay a penalty violates any embargo of twenty five thousand rupees or ten per cent of the amount of placed on removal of the tax involved, whichever is higher. 473[Without prejudice to goods in connection above, he shall also be liable], upon conviction by a Special with recovery of tax. Judge, to imprisonment for a term which may extend to one year, or with fine 474[which may extend to an amount equal to the 472S. No. 13A and entries relating thereto inserted by Finance Act, 2025. Offences Penalties 459[and Punishment] Section of the Act to which (1) (2) offence has amount of tax evaded or sought 15. Any person who to be evaded], or with both. reference Such person shall pay a penalty (3) obstructs the of twenty five thousand rupees or one hundred per cent of the 31 and General authorized officer in amount of tax involved, 73 whichever is higher. the performance of Such person shall pay a penalty 71 and General of five thousand rupees or three his official duties. per cent of the amount of tax General involved, whichever is higher. 16. Any person who fails General.] Such person shall pay a penalty to make payment in of five thousand rupees or three per cent of the amount of tax the manner involved, whichever is higher. prescribed under Such officer of 476[Inland Revenue] shall be liable, upon section 73 of this conviction by a Special Judge, to imprisonment for a term Act. which may extend to three years, or with fine 477[which 17. Any person who fails may extend to an amount equal to the amount of tax evaded or to fulfil any of the sought to be evaded], or with both. conditions, Such person shall pay a penalty limitations or of five thousand rupees or three per cent of the amount of tax restrictions involved, whichever is higher. ] prescribed in a Notification issued under any of the provisions of this Act. 18. Where any officer of 475[Inland Revenue] authorized to act under this Act, acts or omits or attempts to act or omit in a manner causing loss to the sales tax revenue or otherwise abets or connives in any such act. 19. Any person who contravenes any of the provision of this Act 478[or the rules Offences Penalties 459[and Punishment] Section of the Act to which (1) (2) offence has made thereunder] for Such person shall pay twice the reference amount of penalty provided (3) which no penalty under the Act for the said offence General. has, specifically, (i) Such [specified goods] 40C(2)] been provided in this shall be liable to outright confiscation 484[as may be section. prescribed] 485[***]. Any 479[ 20. *** ] person committing the offence shall pay a penalty of twenty- 480[21.Where any person five thousand rupees or one hundred per cent of the amount repeats an of tax involved, whichever is higher. 486[Without prejudice to offence for above, he shall also be liable], upon conviction by a Special which a penalty Judge, to simple imprisonment for a term which may extend to is provided under three years, or with additional fine 487[which may extend to an this Act amount equal to the amount of tax evaded or sought to be 22. 481[Omitted] evaded], or with both. 482[23.Any person who (ii) In case of transport of [specified goods] with manufactures, counterfeited tax stamps, banderoles, stickers, labels or possesses, barcodes, or without tax stamps, banderoles, stickers, labels or transports, distributes, stores or sells 483[goods or class of goods as specified by the Board under sub- section (1) of section 40C] with counterfeited tax stamps, banderoles, stickers, labels or barcodes or without tax stamps, banderoles, stickers, labels or barcodes Offences Penalties 459[and Punishment] Section of the (1) Act to which (2) offence has barcodes, permanent seizure of the vehicle used for reference transportation of non- (3) conforming or counterfeit [specified goods]; and 489[“24. Any person, who (iii) In case of repeat sale of sub-section (9A) [specified goods] without or of section 3 and is integrated for with counterfeited, tax stamps, section 40C. banderoles, stickers, labels or monitoring, barcodes, the premises used for such sale 488[shall be liable to be tracking, reporting sealed by an officer of Inland Revenue in the manner as may or recording of be prescribed.] Such person shall pay a penalty sales, production of five hundred thousand rupees or two hundred per cent of the and similar amount of tax involved, whichever is higher. [Without business prejudice to above, he shall also be liable], upon conviction by a transactions with Special Judge, to simple imprisonment for a term which the Board or its may extend to two years, or with additional fine which may computerized extend to two million rupees, or with both. system, conducts 492[Notwithstanding such transactions above, the business premises of such person in a manner so as shall be liable to be sealed by an officer of Inland to avoid Revenue in the manner prescribed.] monitoring, Any person who abets tracking, reporting commissioning of such offence, shall be liable, upon conviction or recording of by a Special Judge, to simple imprisonment for a term which such transactions, may extend to one year, or with or issues an invoice which does not carry the prescribed invoice number or barcode 490[or QR code] or bears duplicate invoice number or counterfeit Offences Penalties 459[and Punishment] Section of the Act to which (1) (2) offence has barcode, 491[or QR code or defaces the additional fine which may reference prescribed invoice extend to two hundred thousand (3) number of barcode rupees, or with both. or QR code] or any person who abets commissioning of such offence. 25. Any person, who is Such person shall be liable to pay a penalty up to one million required to rupees, and if continues to commit the same offence after a integrate his period of 493[two] months after 495[***] section imposition of penalty as 40C business for aforesaid, his business premises 494[shall be liable to be sealed by monitoring, an officer of Inland Revenue in the manner as may be tracking, reporting prescribed.] or recording of Such person shall be liable to pay: sales, production (i) penalty of five hundred and similar thousand rupees for first default; business (ii) penalty of one million rupees for second default transactions with after fifteen days of order for first default; the Board or its (iii) penalty of two million rupees for third default computerized system, fails to get himself registered under the Act, and if registered, fails to integrate in the manner as required under law. 496[25A A person 497[Section 23] required to 500[and sub- integrate his section (4) of business as section 40C] stipulated under 497[section 23], 498[or sub-section (4) of section 40C,] who fails to get himself registered under Offences Penalties 459[and Punishment] Section of the Act to which (1) (2) offence has after fifteen days of order the Act, and if for second default; reference (iv) penalty of three million (3) registered, fails to rupees for fourth default after fifteen days of order sub-section (5) integrate in the for third default: of section 40C.] Notwithstanding above, the manner as required business premises of such sub-section (6) person shall be liable to be of 40C.”. under the law and sealed by an officer of Inland Revenue in the manner rules made prescribed: Provided that if the thereunder 499[or retailer integrates his business with the Board’s Computerized fails to issue System before imposition of penalty for second default, electronic invoices penalty for first default shall be waived by the Commissioner.] after integration.] Such person shall be liable to pay penalty of rupees one 501[25AA. Any licensed million or one percent of the integrator who is total value of the sales authorized to provide suppressed, whichever is electronic invoicing higher. system for integration of registered persons fails Such person shall be liable to to integrate such pay penalty of fifty thousand registered persons in the rupees and recovery of any tax manner as required evaded through such under this Act and rules contravention made thereunder. 50225B. Where any person fails to generate an e-bilty, or tampers with, misuses, or forges such document in contravention of sub- section (6) of section 40C. Offences Penalties 459[and Punishment] Section of the Act to which (1) (2) offence has Such person shall pay a penalty 26. Any person, being a of ten thousand rupees or five reference per cent of the amount of tax (3) manufacturer or involved, whichever is higher: sub-section (27) importer of an item Further, such goods shall also of section 2 and be liable to confiscation 503[as clause (a) of sub- which is subject to may be prescribed.] However, section (2) of the adjudication authority, after section 3. tax on the basis of such confiscation, may allow redemption of such goods on retail price, who payment of fine which shall not be less than twenty percent of fails to print the the total retail price of such goods. retail price in the manner as stipulated under the Act. 27. Any person, being Such person shall pay a penalty section 40D”;] of ten thousand rupees or five owner of the per cent of the amount of tax involved, whichever is higher: goods, which are Further, such goods shall also brought to be liable to confiscation 504[as may be prescribed.]. However, Pakistan in the adjudication authority, after such confiscation, may allow violation of redemption of such goods on payment of fine which shall not section 40D. be less than twenty percent of value, or retail price in case of items falling in Third Schedule, of such goods. 505[28. Any person who Such person shall pay a penalty 56AB] is required to of twenty five thousand rupees share information for first default and fifty under section thousand rupees for each 56AB, fails to do subsequent default so in the manner as required under the law

Effective date: 1990-11-01

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