9. Consequences of failure to deduct or to pay tax.-

    (1)  If an employer (not being an officer of Government) ¹[fails to pay the tax] as required by or under this Act, he shall without prejudice to any other consequences and liabilities which he may incur, be deemed to be an assessee in default in respect of the tax.

   (2)  Without prejudice to the provisions of sub-section (1), ²[an employer referred to in that sub-section shall be liable] to ³[pay by way of simple interest, in addition to the amount of such tax, a sum calculated at the prescribed rate on the amount of such tax, for each month or part thereof, after the last date by which he should have paid the tax].

 ⁴[(2A) Where the amount of tax as assessed under section 7 or as found payable in view of an order passed under section 13 or 14 is more than the amount of tax paid by the employer, then such employer shall be liable to pay simple interest on the amount of difference of tax at the rate and in the manner laid down in sub-section (2).]

  (3)  If an enrolled person fails to pay the tax as required by or under this Act, he shall be liable to pay simple interest at the rate and in the manner laid down in sub-section (2).

⁵[(3A) If a person, liable to get enrolled, fails to apply for certificate of enrolment within the period specified under this Act, he shall be liable to pay simple interest at the rate of 1.25 per cent. per month or part thereof of the amount of tax payable, from the 1st July of that year, till the date of payment of such tax, in addition to the amount of tax payable in respect of the year, for which he has remained unenrolled.]

  ⁶[(4) The Commissioner may, subject to such conditions and limitations as may be prescribed, and for reasons to be recorded in writing remit the whole or any part of the interest payable in respect of any period under this section.]

Notes:

1. These words were substituted by Mah. 21 of 1976 (w. e. f. 1.11.1976)

2. These words were substituted by Mah. 21 of 1976 (w. e. f. 1.11.1976)

3. This portion was substituted by Mah. Act No. 31 of 2017 dt. 15th April 2017 (w. e. f. 1.4.2017).

Prior to substitution this portion read as: “pay simple interest at *[one and a quarter per cent.] of the amount of the tax [payable for each month] for the period for which the tax **[payable for each month] for the period for which the tax remains unpaid”

    *These words and figure were substituted for the words “2 per cent.” by Mah Act No.13 of 2004 dt. 29th June 2004 (w.e.f. 1.7.2004)

  **These words were substituted for the words “due for each month or part thereof” by Mah. Act No.12 of 1987 (w.e.f. 21.4.1987)

4. This sub-section was inserted by Mah. Act No.12 of 1987 (w.e.f. 21.4.1987)

5. This sub-section was inserted by Mah. Act No. 16 of 2019 dt. 9th July 2019 (w.e.f. 6.3.2019)

6. This sub-section was inserted by Mah. Act No.17 of 1993 (w.e.f. 1.5.1993)