TaxTMI 
TaxTMI 
What is the penalty for breaching of Rule 86b? and If breaching continues by en number of months the penalty will change?
Penalty on Rule 86B
16 Dec 2021 
2 Replies 
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Penalty for 86B breaches equals tax evaded or irregular ITC; minimum statutory floor and repeat offence attracts fresh penalty.
Breach of Rule 86B attracts a penalty equal to the greater of a prescribed minimum and an amount equivalent to the tax evaded, tax not deducted or collected, short paid taxes, or input tax credit availed or passed on irregularly; each subsequent commission of the same offence may attract a fresh penalty under the same rule. (AI Summary)
Breach of Rule 86B attracts a penalty equal to the greater of a prescribed minimum and an amount equivalent to the tax evaded, tax not deducted or collected, short paid taxes, or input tax credit availed or passed on irregularly; each subsequent commission of the same offence may attract a fresh penalty under the same rule. (AI Summary)