(1) Every registered dealer shall furnish return in such manner as may be prescribed.

(2) Before filing of return under sub-section (1), a dealer shall deposit full amount of tax due for each period as prescribed 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 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.