Penalty for Failure to Keep Information in respect of an International Transaction
Nature of Default
Penalty may be imposed for:
• Failure to keep and maintain information and documents relating to international or specified domestic transactions under Section 92D.
• Failure to report such transactions as required.
• Maintaining or furnishing incorrect information or documents with respect to these transactions.
Quantum of Penalty
• The Assessing Officer or Commissioner (Appeals) may impose a penalty equal to 2% of the value of each international or specified domestic transaction.
• Where a constituent entity of an international group fails to furnish information and documents as per Section 92D(4), a penalty of Rs. 5,00,000 may be imposed by the Director-General of Income-tax (Risk Assessment).
• Penalty shall not be levied if the assessee proves reasonable cause for the failure.