(1) Every registered dealer shall furnish monthly return within 30 days from the expiry of such month and in such manner containing such particular as may be prescribed.

(2) Before filing of return under subsection (1), a dealer shall deposit full amount of tax due on monthly basis for the period of preceding month within 30 days from the expiry of such month and shall furnish the proof of payment of such tax to the Assessing Authority.

(3) If a dealer fails without sufficient cause to furnish the monthly returns under sub-section (1), he shall be liable to pay, by way of penalty, a sum equal to Rs. 100 per day for delay in furnishing such return upto ten days, where after the penalty shall be Rs. 500 per day till the default continues; provided that where no tax is payable, such penalty shall not exceed Rs. 500 for every return.

(4) If a dealer fails without sufficient cause to comply with the requirements of provisions of sub-section (2), the Commissioner or any other person appointed to assist him under sub-section (1) of section 3 of Himachal Pradesh Value Added Tax Act, 2005, may, after giving such dealer a reasonable opportunity of being heard, direct him to pay by way of penalty a sum equal to 50 percentum of the amount of tax due.