(1) Subject to the provisions of rule 37 and rule 42, a dealer who is required to furnish return annually under sub-rule (2C) of rule 34 or rule 34AB, shall,-

(a) pay into the appropriate Government Treasury under the appropriate challans showing separately the amount of net tax and interest, if any, payable according to such return for each of the first three quarters each year within twenty one days from the expiry of each quarter; and

(b) pay into appropriate Government Treasury under the appropriate challans showing separately the balance amount of net tax and interest, if any, which remains after deducting the amount of net tax and interest, if any, paid for the first three quarters as referred to in clause (a) from the total amount of net tax and interest, if any, payable according to return for such year before furnishing such returns by him under sub-rule (2C) of rule 34 or rule 34AB, and

(c) pay into the appropriate Government Treasury under the appropriate challan showing separately the amount of late fee, if any,-

(i) where the amount of net tax according to the return relating to the period commencing on or after the 1st day of April, 2010, exceeds rupees ten thousand,-

(A) of rupees one thousand for the first English Calendar month or part thereof of delay in furnishing such return, and

(B) of rupees two hundred and fifty for every subsequent English Calendar month or part thereof of delay in furnishing such return; or

(ii) where no amount of tax is payable according to the return relating to the period commencing on or after the 1st day of April, 2010 or where the amount of net tax according to the return relating to the period commencing on or after the 1st day of April, 2010, does not exceed rupees ten thousand,-

(A) of rupees three hundred for the first English Calendar month or part thereof of delay in furnishing return, and

(B) of rupees one hundred for every subsequent English Calendar month or part thereof of delay in furnishing such return, payable according to the return for such year before furnishing such return by him under sub- rule (2C) of rule 34 or rule 34AB:

Provided that where a dealer has furnished the return in respect of any return period by the prescribed date or thereafter but has failed to make full payment of net tax and interest payable according to such return within such prescribed date, such dealer shall be deemed to be delayed in furnishing return for the purpose of this clause and shall pay late fee upto the date of full payment of such net tax and interest or upto the date of provisional assessment made under section 45, or assessment made under section 46 or section 48, as the case may be, in respect of such period , whichever is earlier :

Provided further that where a dealer has failed to furnish return in respect of any return period by the prescribed date or thereafter before the provisional assessment made under section 45 or the assessment made under section 46 or section 48, as the case may be, and on such provisional or other assessments, the full amount of net tax and interest payable for such period is found not to have been paid by him within such date, such dealer shall pay late fee upto the date of provisional assessment under section 45 or assessment under section 46 or section 48, as the case may be, in respect of such return period.

(2) The provisions of sub-rule (2), and sub-rule (3), of rule 40 shall, mutatis mutandis, apply in the manner and time of payment of net tax and interest and payment of late fee under this rule.