VAT fines and penalties as per Value Added Tax, 2052.

1. Not registered as per the act within 30 days Rs. 20,000 each time
Not displayed the registration document (every
branches as well)
Rs. 1,000 each time
Tax plate not displayed Rs. 2,000 each time
Change in details of business not provided within
15 days
Rs. 10,000 each time
Tax invoice not issued Rs. 10,000 each time
Tax invoice not obtained Rs. 1,000 each time
Tax invoice not taken for transfer of goods more
than Rs. 10,000 from one place to the other
Rs. 10,000 each time
Unregistered person collected the tax 100% of tax amount
Record not maintained as per Sec 16 Rs. 10,000
Record not provided for inspection Rs. 20,000 each time
Incomplete record Max. Rs. 5,000
Purchase and sales book not maintained Rs. 10,000
Records not maintained for specified time period Rs. 10,000
Software with amendment facility for digital
invoice user or non user
Rs. 500,000
Digital invoice issuer, not followed the procedure
defined by IRD
Rs. 500,00
Non-filer of return 0.05% per day or Rs. 1,000
per return whichever is
higher

2. Hassel in investigation to Officer Rs. 5,000 each time
Under-invoicing Rs. 2,000 for each invoice or
100% of tax or 6 months jail
or both
(Whichever is higher)
Non-compliance of this act Rs. 1,000 each time
Evasion of tax Upto 25% of tax
Overstocking
(Income to be recognized and valuation at market
price)
Upto 50% of tax
Invoice only without actual sale 50% of invoice or 6 months
jail or both
Non-registration by the person needed to registered 50% of tax
False record or fake invoice 100% of tax or 6 months jail
or both
Evasion of tax through fraud 100% of tax or 6 months jail
or both
Activity conducted under suspension for 7 days
each time due to offence mentioned above
conducted for 2 or more than 2 times
100% of tax or 6 months jail
or both
Inducer 50% of lesser tax
Tax non payment 10% fine and 15% interest