(1) If any dealer fails to pay the amount of tax due within the time prescribed for its payment under section 29, such dealer shall, in addition to the tax, be liable to pay simple interest, at the rate of one and half per cent, per month on the amount of tax not so paid or on any less amount thereof remaining unpaid during such period, for the period commencing on the day following the date of expiry of the due date to the date of payment or the date of assessment, whichever is earlier. If any dealer fails to pay interest along with return or revised return in accordance with the provisions of this sub-section, such interest shall be levied by the Prescribed Authority.

(2) For the purpose of calculating interest;

(a) 'month' shall mean thirty days;

(b) where the period of default is in respect of a period of less than one month, the interest shall be computed proportionately.

(3) If any dealer, without sufficient cause, fails to pay the amount of tax due and interest along with return or revised return in accordance with the provisions of sub-section (1), the Prescribed Authority may, after giving the dealer a reasonable opportunity of being heard, direct him to pay in addition to the tax and the interest payable by him, by way of penalty a sum not exceeding two percent per month of the tax so payable from the first day of the month following the month in which it had become due to the date of its payment or to the date of order of assessment, whichever is earlier.

(4) If any dealer, without any sufficient cause,

(a) fails to furnish a tax return as required under sub-section (1) or an annual return under sub-section (2) of section 29, by the prescribed date; or

(b) fails to comply with the requirements of the notice issued under sub-section (3) of section 29; or

(c) being required to furnish revised return, fails to furnish the same by the date prescribed under sub-section (4) of section 29; or

(d) having paid the tax payable according to a return in time, fails to furnish such return in time or fails to furnish along with the return proof of payment made in accordance with sub-section (5) of section 29,

the Prescribed Authority may, after giving the dealer a reasonable opportunity of being heard, direct him to pay in addition to any tax, interest and penalty under sub-section (3) payable or paid by him, a penalty of a sum of rupees one hundred per day of default subject to a maximum of rupees ten thousand.

(5) The penalties specified under this section may be imposed by the Prescribed Authority notwithstanding the fact that the assessment proceedings have not been initiated against the dealer.

(6) For the purposes of this Act, any return signed by a person who is not authorised under sub-section (6) of section 29 shall be treated as if no return has been filed.