Section 9: Levy of penalty for belated payment

(1) When a person or drawing and disbursing officer fails to pay the tax within the period, Executive Authority shall levy a penalty at the rate of one rupee per mensem or part of a month for the tax amount of every hundred rupees or part thereof due to be paid.

(2) If a person or drawing the disbursing officer files an incomplete or incorrect return under Rule 5 and if the same is detected during checking done under Rule 7, the Executive Authority shall revise the tax amount and shall collect from the person or drawing and disbursing officers concerned, a penalty of one hundred percent of the difference of the tax revised and the tax paid as per the return filed by him.