Penalty for failure to deduct or pay equalisation levy
168. Any assessee who––
(a) fails to deduct the whole or any part of the equalisation levy as required under section 163; or
(b) having deducted the equalisation levy, fails to pay such levy to the credit of the Central Government in accordance with the provisions of sub-section (2) of that section, shall be liable to pay,-
(i) in the case referred to in clause (a), in addition to paying the levy in accordance with the provisions of sub-section (3) of that section, or interest, if any, in accordance with the provisions of section 167, a penalty equal to the amount of equalisation levy that he failed to deduct; and
(ii) in the case referred to in clause (b), in addition to paying the levy in accordance with the provisions of sub-section (2) of that section and interest in accordance with the provisions of section 167, a penalty of one thousand rupees for every day during which the failure continues, so, however, that the penalty under this clause shall not exceed the amount of equalisation levy that he failed to pay.
Notes on Clauses:
Clause 168 of the Bill provides for imposition of penalty on the assessee responsible to deduct equalisation levy. The penalty would be a sum equal to the amount of equalisation levy not deducted in a case where the assessee fails to deduct the whole or any part of equalisation levy. In other cases, such penalty imposed will be one thousand rupees for every such failure. However, the penalty imposable under this clause shall not exceed the amount of equalisation levy that was to be paid.