Penalty for Failure to Submit Statement under Section 285 by a Non-Resident Liaison Office
Nature of Default
A penalty is levied if a non-resident having a liaison office (LO) in India fails to submit an annual statement in Form No. 49C to the jurisdictional Assessing Officer within 8 months from the end of such financial year.
Quantum of Penalty
- The Assessing Officer may levy a penalty of Rs. 1,000 per day if the period of failure does not exceed 3 months.
- Rs. 1,00,000 in any other case.
- Penalty shall not be levied if the assessee proves reasonable cause for the failure.