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Punjab Sales Tax on Services Act, 2012 QUESTION #2559
Question 1
Under section 49(1)(b) of the Punjab Sales Tax on Services Act, 2012, the default surcharge rate specifically applicable where the default is on account of TAX FRAUD is:
  • Inter-bank rate plus three percent per annum
  • One percent per month
  • Two percent per month✔️
  • Five percent per annum
Correct Answer Explanation
Section 49(1)(b) provides that in case the default is on account of tax fraud, the person who has committed tax fraud shall pay default surcharge at the rate of TWO percent per month of the amount of tax evaded, till the entire liability is paid. The general rate under 49(1)(a) is inter-bank rate plus 3% per annum.