Section 108B of The Customs Act,1962
1[108B. Penalty for failure to furnish information return.--Where the person who is required to furnish information under section 108A fails to do so within the period specified in the notice issued under sub-section (3) thereof, the proper officer may direct such person to pay, by way of penalty, a sum of one hundred rupees for each day of the period during which the failure to furnish such information continue.]
Summary
- This provision imposes a daily penalty on any entity that fails to comply with a notice to furnish information.
- The penalty is triggered if the entity ignores the thirty-day notice issued under Section 108A.
- The penalty amount is exactly one hundred rupees for each day the failure to furnish information continues.
- Only the proper officer has the power to direct a person to pay this penalty.
Practical examples
FAQ
1. What is the daily penalty under Section 108B of the Customs Act, 1962?
Under Section 108B of the Customs Act, 1962, the penalty is one hundred rupees for each day the failure to furnish information continues.
2. When does the penalty under Section 108B of the Customs Act, 1962 start applying?
The penalty under Section 108B of the Customs Act, 1962 starts when an entity fails to provide the information within the time specified in the notice issued under Section 108A.
3. Who can impose the penalty under Section 108B of the Customs Act, 1962?
Under Section 108B of the Customs Act, 1962, the proper officer has the authority to direct the non-compliant person to pay the penalty.
4. Is there an upfront fixed penalty in addition to the daily rate under Section 108B of the Customs Act, 1962?
No, Section 108B of the Customs Act, 1962 only specifies a recurring penalty of one hundred rupees per day for the duration of the failure.
Test yourself
Q1.What is the exact penalty rate specified under Section 108B of the Customs Act, 1962 for failing to furnish information?
Q2.Under Section 108B of the Customs Act, 1962, a person is penalized for failing to comply with a notice to furnish information under Section 108A of the Customs Act, 1962. What is the maximum response period given in the notice under Section 108A of the Customs Act, 1962 before the daily penalty starts?
Q3.Under Section 108B of the Customs Act, 1962, who is authorised to direct a person to pay the daily penalty?
Q4.If a banking company fails to comply with a notice for 15 days, what is the total penalty that can be directed under Section 108B of the Customs Act, 1962?