DEMO|

THE KERALA VALUE ADDED TAX ACT, 2003
CHAPTER VIII : OFFENCES AND PENALTIES

Body 74. Composition of offences.-

(1) The assessing authority or other officer or authority authorized by the Government in this behalf may accept from any person who has committed or is reasonably suspected of having committed an offence against this Act, other than those specified under clause (e) of sub-section (1) or clause (b), (c) or (d) of sub-section (2) of section 71, by way of compounding of such offence,-

    (a) where the offence consists of the evasion of any tax payable under this Act, in addition to the tax so payable a sum of money equal to the amount of tax so payable subject to a minimum of rupees five hundred and maximum of rupees eight and

    Provided that the maximum compounding fee collectable against a single offence spread over several return periods in a financial year shall be two lakh rupees.

    (b) in other cases, a sum of money not exceeding ten thousand rupees:

Provided that the Commissioner of State Tax may by order authorize any officer to compound the offence under this section on payment of a reduced amount.

(2) On payment of such amount under sub-section (1), no further penal or prosecution proceedings shall be taken against such person, in respect of that offence.