Tax Book 2023

Offences and Penalties Chapter- 09

26. Any person, being a
    manufacturer, or importer of an item
    which is subject to tax on the basis
    of retail price, who fails to print the
    retail price in the manner as
    stipulated under the Act

Such person shall pay a penalty of ten

thousand rupees or five per cent of the

amount of tax involved, whichever is

higher: Further, such goods shall also be

liable to confiscation.

However, the adjudication authority,

after such confiscation, may allow

redemption of such goods on payment of

fine which shall not be less than twenty

percent of the total retail price of such

goods

Sub-section (27) of

section 2 and clause

(a) of subsection (2) of

section 3

27. Any person, being owner of the
    goods, which are brought to Pakistan
    in violation of section 40D

Such person shall pay a penalty of ten

thousand rupees or five per cent of the

amount of tax involved, whichever is

higher.

Further, such goods shall also be liable

to confiscation. However, the

adjudication authority, after such

confiscation, may allow redemption of

such goods on payment of fine which

shall not be less than twenty percent of

value, or retail price in case of items

falling in the Third Schedule, of such

goods

Section 40D

28. Any person who is required to
    share information under section
    56AB, fails to do so in the
    manner as required under the law

Such person shall pay a penalty of Rs.

25,000 for first default and Rs. 50,000

for each subsequent default

56AB

Default Surcharge (U/s 34)

1. If a registered person does not pay the tax or any part of tax, whether due to fraud or otherwise or
   claims a tax credit refund or makes an adjustment which is inadmissible or incorrectly applies the rate
   of 0% to supplies made by him, shall be liable to pay the tax due and default surcharge at the rate
   below:
   (a) In the case of person liable to pay amount of tax or charge or refund erroneously made, shall
   pay default surcharge @ rate of 12% p.a. of the amount of tax due or refund made.
   (b) In the case the person has committed tax fraud shall pay default surcharge @ rate of 2% per
   month of the amount of tax evaded or amount of refund fraudulently claimed until the total
   liability including default surcharge is paid.


2. Tax due does not include the amount of penalty. In the calculation of default surcharge, following
   should be considered;
   (a) In the case of inadmissible input tax credit or refund, the period of default surcharge shall
   be started from the date of adjustment of inadmissible input tax credit or refund is received.
   (b) In the case of non-payment of tax or part thereof, the period of default surcharge shall be
   started from the 16 th day of month (following the due date of the tax period to which the default
   relates) to the day preceding the date on which tax due is actually paid.