Amendment status not verified — confirm the current text below against the official source.
(1) If the person liable for the payment of any tax does not, within thirty days of the service of the notice of demand under section 118, pay the sum due and if no appeal is preferred against such tax, he shall be deemed to be in default. (2) When the person liable for the payment of any tax is deemed to be in default under sub-section (1), such sum, not exceeding fifteen per cent. of the amount of tax, as may be determined by the COrporation by regulations, may be recovered from him by way of penalty, in addition to the amount of the tax, the notice fee payable under sub-section (2) of section 118, and simple interest in accordance with sub-section (3). (3) Simple interest at such rate as may be determined by the State Government from time to time shall be payable on any amount of tax remaining unpaid with effect from the date from which the person referred to in sub-section (1) becomes a defaulter under that sub-section. (4) The amount due as penalty or interest under this section shall be recoverable as an arrear of tax under this Act.