Section 19: Tax Payment

1) A taxpayer shall pay the tax for each tax period within twenty-five days of the completion of that period.

2) If the taxpayer fails to submit the tax within the time limit mentioned in sub-section (1), additional fee of ten percent per annum shall be charged on the due amount.

3) ………………

4) If a taxpayer submits an application for the remission of the additional charges imposed under sub-section (2) stating the reason that the failure to make timely payment was caused by a situation beyond the taxpayer’s control (force majeure), the Director General may, if he/she finds the reason reasonable, remit such charges.

5) The liability of tax amount to be paid on calculation of the additional charges referred to in sub-section (2) and the interest referred to in Section 26 shall be charged calculating the period from the date of expiration for submission of the tax of the transaction of the month by which the duty is created 68within that tax period.

6) In cases where, in assessing the tax of any taxpayer pursuant to Section 20, it appears that the amount of tax which he/she could get refunded exceeds the tax recoverable from him/her in that tax period, additional fee and interest shall not be recovered in assessing his/her tax in that tax period.

7) Tax may also be paid within the time-limit mentioned in sub-section (1) by an electronic means or a cheque guaranteed by a bank (good for payment cheque). Tax shall be deemed paid on the date of payment in case of payment made through electronic means and receipt by the Office of a cheque guaranteed by the bank (good for payment cheque) in the case of payment made by good for payment cheque.

7A) Notwithstanding anything contained in sub-section (7), payment of tax exceeding one million rupees shall be made through a cheque, draft or electronic means.

8) No interest shall be charged and collected in interest, additional fee/charge and fine.