Penalty u/s 122 and u/s 74 of cgst act
This query is : Resolved
15 December 2019
In sec 122, in case of intention of fraud,penalty amount is 10,000 or amount of tax evaded which ever is higher and in sec 74,penalty amount is equivalent to tax.So please clarify the implication of both sections.
16 December 2019
Sec 122 has wider implications . It has sub sections 122(1) , 122(2) & 122(3)
74 will be applicable for
tax is unpaid/short paid or,
refunds have been wrongly calculated or,
Input tax credit has been wrongly availed/utilised
whilst these are one of the reason for penalty under sec 122 .
section 122 (3). deal with the situations where you are not directly involved in tax evasion. Instead, you aid or abet or may be a party to such an evasion. Furthermore, it also includes cases where you do not attend summons or produce documents. For that ,you shall be liable to pay a penalty which may extend to Rs 25,000.
74 will be applicable for
tax is unpaid/short paid or,
refunds have been wrongly calculated or,
Input tax credit has been wrongly availed/utilised
whilst these are one of the reason for penalty under sec 122 .
section 122 (3). deal with the situations where you are not directly involved in tax evasion. Instead, you aid or abet or may be a party to such an evasion. Furthermore, it also includes cases where you do not attend summons or produce documents. For that ,you shall be liable to pay a penalty which may extend to Rs 25,000.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Booth for sales promotion
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Average Cost Of High Quality Diamonds
- Regarding ITR filing with more value than showing in AIS/TIS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
