Payment of tax and other dues payable under the Act
(1) 1(The tax assessed, whether provisionally or finally and the penalty levied under the provisions of this Act) shall be paid by the dealer in such manner, and within such time, not being less than fifteen days from the date of service of the notice of assessment or of the levy of penalty, as may be specified in such notice:



2(Provided that the time-limit of fifteen days for a notice under this sub-section shall not apply to casual traders.)



3(Provided further that the assessing authority may, for good and sufficient reasons to be recorded in writing, require the dealer to pay the tax assessed or the penalty levied within such time, not being less than seven days from the date of service of the notice of assessment, as may be specified in the notice.)

4(Provided also that the assessing authority shall require the dealer to pay the tax due as per the return filed by him in case such return is not accompanied by the proof of payments of tax and it shall not be necessary to give minimum time of fifteen days for payment of tax as mentioned in this section;)

1. Subs. for the words: "The tax assessed under this Act and the penalty levied under sub-sections (2) (3) and (4) of Section 14" by Act. 18 of 1985, w.e.f.1.7.1985.
2. Added by Act III of 1958, w.e.f.1.4.1958.
3. Inserted by Act 5 of 1968, w.e.f.1.7.1968.
4. Added by Act No. 2 of 1968.



((2) (a) Notwithstanding anything contained in sub-section (1), on an application made by the assessee, the Deputy Commissioner may, by an order, allow extension of time for payment of any tax, penalty or other amount due under this Act, or permit the payment thereof in such installments, within such intervals and subject to such conditions as he may specify in the said order, having regard to the circumstances of each case;



(b) In every case where extension of time for such payment is allowed or where such payment in installments is permitted, the dealer shall pay, in addition to such tax, penalty, installment or other amount, interest at the rate of *(one rupee and fifty paise) for every one hundred rupees or part there-of for each month or part thereof, from the date specified for its payment for the period so extended or on the installments so permitted.



1[(3) (a) If the tax assessed or penalty levied or any other amount due under this Act or any installment thereof is not paid by any dealer or other person within the time specified therefor in the notice of demand or in the order permitting the payment in installments or in any other provision of the Act or the rules made thereunder, the dealer or other person, shall pay in addition to the amount of such tax, penalty, installment or any other amount, interest calculated for every one hundred rupees or part thereof at the rates mentioned below for the period of delay from the due date or date specified for its payments.



(i) Within 30 days of delay .. at the rate of 18% of the tax due. (ii) above 30 days but below 90 days of delay .. at the rate of 24% of the tax due. (iii) above 90 days but below 365 days of delay .. at the rate of 30% of the tax due (iv) for delay exceeding one year .. 2at the flat rate of 36% of the tax due per
annum



(b) If any dealer fails to pay tax along with the return due to be filed by him, interest calculated at the rates mentioned in sub-clause(a) of this sub-section shall be levied for the period of delay commencing from the date on which the return is due to be filed by that dealer to the assessing authority;



(c) The dealer shall calculate the interest at the rates mentioned above for the period of delay and shall
remit it along with the tax due to be paid by him;



(d) If any new dealer fails to file a return he shall be liable to pay interest on the amount of tax due or as assessed by the assessing authority for the period o delay commencing from the date on which the return is due to be filed by him.]

NOTE: Sub-sections (2) and (3) were substituted by Act 18 of 1985 w.e.f.1.7.1985.
1. Subs. by Act NO.2 OF 1998. The earlier sub-section (3) read as under:

"(3) If the tax assessed or penalty levied or any other amount due under this Act or any instalment thereof is not paid by any dealer or other person within the time specified therefor in the notice of demand or in the order permitting the payment in instalments or in any other provision of this Act or rule made thereunder, the dealer or other person shall pay, in addition to the amount of such tax,penalty,instalment or other amount,interest at the rate of * (one rupee and fifty paise) for every one hundred rupees or part thereof for each month or part thereof, form the date specified,for its payment."

*Subs. for the words "two rupees" by Act No. 4 of 1989 w.e.f.21.1.1989.

2. Subs. by Act.No. 19 of 2000 w.e.f.1.4.2000 for the words "at a flat rate of 36% of the tax due "



(4) If the tax assessed or (penalty levied or interest payable) under this Act or any installment thereof, and the fees payable towards licence or registration, are not paid by a dealer within the time specified therefor, the whole of the amount then remaining unpaid (....) may be recovered from him as if it were an arrear of land revenue.

NOTE: The bracketed words were substituted for the words 'the penalty levied' by Act 16 of 1963, w.e.f.1.8.1963.
The words 'including the penalty payable under sub-section (3)' were omitted by Act 16 of 1963, w.e.f.1.8.1963.

(5) The penalty (payable) under this Act shall be without prejudice to the institution of any proceeding for an offence under this Act, or for the recovery of the entire amount remaining unpaid under sub-section (4).

NOTE: The bracketed words were substituted for the words 'levied' by Act 26 of 1961, w.e.f. 1.10.1961.

(16-A. Liability in case of firms:



Where any firm is liable to pay any tax or other amount under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment.

16-B. Liability of directors of private company in liquidation:

When any private company is wound up and any tax assessed on the company under this Act for any period, whether before or in the course of or after its liquidation, cannot be recovered, then every person who was a director of the private company at any time during the period for which the tax is due, shall be jointly and severally liable for the payment of such tax, unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.)

NOTE: The above two sections were inserted by Act 18 of 1985, w.e.f. 1.7.1985.



16-C. Liability under this Act to be the first charge:



Notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax, penalty, interest and any other sum if any, payable by a dealer or any other person under this Act, shall be the, first charge on the property of dealer, or such person.

NOTE: Section 16C was inserted by Act No.9 of 1999 w.e.f.6.4.1999.

See Rule 62