37. Offences and penalties.-
(1) If any person,
(a) fails to apply for registration under this Act, although it is required for him to apply; or
(b) fails to submit return within the prescribed date; or
(c) fails to inform the value added tax officer about any change on information in relation to registration; or
(d) fails to comply with the direction of any summons under section 25; or
(dd) fails to maintain electronic cash register (ECR) or computer as mentioned in clause (d) of sub-section (e); or
(e) violates any other provision of this Act, then, he shall be liable to pay a money penalty of fine of taka not less than five thousand and not more than twenty five thousand.
(2) If any person, -
(a) fails to submit tax invoice or submits an untrue tax invoice on important information; or
(aa) fails to pay value added tax or, where applicable, value added tax and supplementary duty on goods supplied or service rendered by him being directed twice by the concerned Officer, or fails to submit the return for a tax period even after lapse of the due time specified for such submission; or
(b) submits untrue return in the context of important information; or
(bb) attempts to evade value added tax on supply of goods without recording information regarding sales in the Accounts book of Sale (Mushak-17) and in the Account Current book (Mushak-18); or
(c) evades or attempts to evade tax by submitting forged or false documents to a value added tax officer; or
(cc) despite being instructed by any VAT Officer, a registered or worth registered person fails to furnish any information or document; or
(d) does not preserve any document or ECR or computer which is required to be preserved under this Act or Rules; or destroys or alters such document or mutilates any part of such document; or demonstrates it to be false; or does not preserve the document as per requirement of this Act; or
(e) consciously makes a false statement or declaration; or
(f) obstructs or prevents from entering into his business place any value added tax officer authorized under this Act to inspect or seize any record, register or any other document, ECR or computer relating to value added tax; or .
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(g) being involved himself in receiving, taking possession or carrying out transaction of such goods despite of knowing fully well or having sufficient reason to believe that value added tax or, where applicable, supplementary duty payable on such goods has been evaded; or
(h) receives input tax rebate through false or forged invoice; or
(i) evades or attempts to evade value added tax or supplementary Duty by any other means; or
(j) issues chalan stating therein the amount of value added tax even without being a registered person; or
(jj) does not do anything as required or does anything which is not required under sub-section (4a) of section 6; or
(jjj) delivers goods or renders service under this Act or the rules, without keeping sufficient balance required in the Current Account, by which adjustment or payment of output tax can be made by accumulating the balance with deposited money and the rebate (credit) due to input tax; or
(k) does or abates in doing anything specified in clause (a) to JJJ),
then, he shall be liable to a monetary penalty of an amount not less than equal amount and not more than two and half time of the amount of value added tax or, where applicable, value added tax and supplementary duty, payable upon the goods or service;
(3) If the registered service provider fails to submit return or to pay value added tax or, where applicable, value added tax and supplementary duty within the specified date, then he shall have to pay that unpaid value added tax or, where applicable, value added tax and supplementary duty together with an additional tax at the rate of 2% per month on the unpaid tax.
(3a) The effectiveness of penal provisions for an offence committed under this Act or the Rules made there-under shall not be prejudiced by the payment of value added tax or, where applicable, value added tax and supplementary duty along with monthly 2% additional tax under sub-section(3)
(3b) Notwithstanding the fact that there was obligation to deduct VAT at source under the provisions of Sub-Section (4aa) and Sub-Section (4b) of Section-6, if the authority to deduct VAT at source fails to deduct VAT at source and fails to deposit it to government treasury,-
(a) The VAT to be realizable with interest under the provisions of Sub-Section-3 will be realized from such person in the manner as if he is a supplier of goods or provider of services under the above provisions;
(b) With no prejudice to Sub-Sub-Section (a), if VAT deducted at source is not
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deposited to the government treasury in time; then concerned Commissioner will have power to impose BDT 25,000.00 (twenty five thousand) personal fine upon the person who has deducted VAT at source or upon the person who was responsible to deposit the money to the government treasury or upon the Chief Executive of the concerned organization.
(4) Notwithstanding anything contained any where in the Act, if a registered person fails to pay value added tax or, value added tax and supplementary duty,, as the case may be, if applicable, even after being notified for the purpose twice by the concerned officer or fails to pay value added tax or value added tax and supplementary duty, as the case may be, within three months after the expiry of tax period or commits any offence at least twice as mentioned in sub-section (2) and section 38 in any twelve months period or if a person required to be registered fails to registered fails to register within one month of order for compulsory registration under sub-section (40 of section 15, then
(a) in the case of registered person, his business premises can be closed and his registration can also be cancelled; and
(b) in the case of a person required to be registered, his business premise can be closed.
(5) No monetary penalty except the penalty imposed by a Court of Magistrate, shall be imposed upon the concerned person nor shall his business premise be put under lock and key; nor shall his registration be cancelled without giving him a reasonable opportunity of being heard (including opportunity of being heard personally if he so desire, or being heard through his nominated counsel).
(6) Whatever be there in the other part of this Act, if any person is proved guilty in the Court of Special Judge for offences described in Sub-Section-2, he can be awarded a minimum three months and maximum two years imprisonment or a fine of minimum equivalent or maximum two and half times the involved Value Added Tax or circumstantially, Value Added Tax and Supplementary Duty or with both the fines.