Sub: APVAT Act 2005 –Offences under the Act-Composition of Offences under sec 61(1) of the Act- Certain instructions- Reg.

***

It is to inform that under section 58 of APVAT Act, 2005, any dealer or person who fails to comply with requirements under

Ø sections 14 -not issuing Tax invoices,

Ø section 16-issuing/producing false bill/ declaration etc ,

Ø section 17-not getting VAT/TOT registration ,

Ø section 21-not filing return/filing incorrect return,

Ø section 29-Third party discharging liability to defaulter after notice from dept ,

Ø section 42-not maintaining records prescribed,

Ø section 43-goods not covered by documents-noticed by Inspecting officer,

Ø section 64-Person or authority not furnishing information required by any authority under the Act

Ø any other provisions of the Act,

shall on conviction be punishable with imprisonment for a term which may extend to three months or with fine or with both.

Further, under section 59 of the Act any dealer who obstructs the authority prescribed in the performance of his duties under the Act shall on conviction be punishable with imprisonment for a term which shall not be less than one month but which may extend to six months and with fine.

As per section 61(1) of the Act, "the authority prescribed may accept from any dealer who has committed an offence under the Act by way of composition of such offence, (a) where the offence consists of the evasion of tax, in addition to such tax, a sum of money equal to the amount of tax subject to a minimum of Rs 3,000 and in other cases a sum of money not exceeding Rs 3,000"

But the field officers are not invoking the above provisions of the Act inspite of many irregularities noticed by them during the course of inspections of the business premises or during the course of check of vehicular traffics etc. Consequently, there is no deterrence to tax evaders.

Hence all the Deputy Commissioner(CT)s, Assistant Commissioner(CT)s, Commercial Tax Officers, Deputy Commercial Tax Officers and Assistant Commercial Tax Officers in the state are hereby instructed to invoke the above provisions to prosecute the offenders under the Act or compound the offences under section 61(1) of the Act.

The Deputy Commissioners shall submit compliance report by 20-05-2015.

Sd/ J. SYAMALA RAO

Commissioner of Commercial Taxes