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Punjab Sales Tax on Services Act, 2012 QUESTION #2573
Question 1
According to Entry No. 23 of the Offences and Penalties Schedule, where a bank fails to attach or delays attaching the bank account of a person specified in an officer's notice, what is the prescribed penalty?
  • Fifty thousand rupees or fifty percent of tax, whichever is higher
  • One hundred thousand rupees or one hundred percent of tax sought to be recovered, whichever is higher✔️
  • Two hundred thousand rupees fixed penalty
  • Five percent of the bank's total deposits
Correct Answer Explanation
Entry No. 23 provides that a bank failing to comply with an attachment notice shall be liable to pay a penalty of ONE HUNDRED THOUSAND RUPEES OR ONE HUNDRED PERCENT of the tax sought to be recovered, whichever is higher. The bank manager may also face imprisonment up to one year.