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Section 87 of Delhi Value Added Tax Act 2004 - Automatic mitigation and increase of penalties

What is Automatic mitigation and increase of penalties? Section 87 of DVAT Act 2004

Section 87 : Automatic mitigation and increase of penalties - Delhi Value Added Tax Act 2004

 

(1) Where as a result of any proceedings the amount of tax with respect to which a penalty was levied has been wholly reduced, the penalty levied shall be cancelled and if the penalty has been paid, it shall be refunded.

(2) If ?

(a) a person is liable to pay a penalty under sub-section (12) of section 86 of this Act; and

(b) the person voluntarily discloses to the Commissioner in writing the existence of the tax deficiency before the Commissioner informs the person that an audit of the person?s tax obligations is to be carried out;
the amount of the penalty otherwise due shall be reduced by eighty per cent of the penalty.

(3) If ?
(a) a person is liable to pay a penalty under sub-section (12) of section 86 of this Act; and

(b) the person voluntarily discloses to the Commissioner in writing the existence of the tax deficiency after the Commissioner informs the person that an audit of the person?s tax obligations is to be carried out;

the amount of the penalty due shall be reduced by fifty per cent of the penalty.

(4) If ?
(a) a person is liable to pay a penalty under sub-section (12) of section 86 of this Act;

(b) the tax deficiency arose because the person treated this Act as applying to the person in a particular way; and

(c) the decision to adopt that treatment was made by the person relying on a determination given to the person by the Commissioner under section 84 of this Act or a ruling issued by the Commissioner under section 85 of this Act; the amount of the penalty otherwise due shall be reduced to nil.

(5) Where ?

(a) penalty under this Act has been assessed;

(b) the penalty has not been remitted in full after objection; and

(c) the person is subsequently assessed to a further penalty in respect of
the same or a substantially similar failure occurring on another occasion (in this section called the "subsequent offence"); the penalty otherwise due under this Act shall be increased by ?

(i) in the case of the first subsequent offence, fifty per cent of the specified penalty; and

(ii) in the case of the second and any further subsequent offence, one hundred per cent of the specified penalty.

(6) If ?
(a) a person is liable to pay penalty under section 86 of this Act; and

(b) the person voluntarily discloses to the Commissioner, in writing, the existence of the tax deficiency, during the course of proceedings under section 60; and

(c) makes payment of such tax deficiency within three working days of the conclusion of the said proceedings;

the amount of the penalty otherwise due, against the admitted and paid tax, shall be reduced by eighty per cent.

DELHI VALUE ADDED TAX ACT 2004

Section 81 : Appeal to High Court

Section 82 : Appearance before any authority in proceedings

Section 83 : Bar of suits in civil courts

Section 84 : Determination of specific questions

Section 85 : Ruling on general questions

Section 86 : Penalties

Section 87 : Automatic mitigation and increase of penalties

Section 88 : Relationship to assessment and impact on criminal penalties

Section 89 : Offences and criminal penalties

Section 90 : Offences by companies, etc

 

 

Section 91 : Cognizance of offences

Section 92 : Investigation of offences

Section 93 : Compounding of offences

Section 94 : Chapter XXXVI of the Code of Criminal Procedure, 1973, not to apply to certain offences

Section 95 : Dealer to declare the name of manager of business, Permanent Account Number and IEC Importer Exporter Code

 

 

Section 96 : Service of notice when family is disrupted or firm is dissolved

Section 97 : Service of notice in the case of discontinued business

Section 98 : Returns, etc. to be confidential

Section 99 : Publication and disclosure of information in respect of dealers and other persons in public interest

Section 100 : Power to collect statistics

Section 100A : Automation

Section 101 : Setting up of check-posts and barriers

Section 102 : Power to make rules

Section 103 : Power to amend Schedules

Section 104 : Power to remove difficulties

Section 105 : Application to sales and purchases

Section 106 : Repeal and savings

Section 107 : Amnesty Scheme

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