Under the DVAT Act, non-registration, non-compliance of provisions or tax evasion attract heavy penalties, such as:
a. Failure to apply for DVAT Registration may lead to a penalty of Rs 1,000 per day up to a maximum of Rs 1 lakh under Section 86 (4).
b. Failure to apply for Amendment Application (if required) can lead to a penalty of Rs 200 per day up to a maximum of Rs 10,000 under Section 86 (5).
c. Failure to apply for cancellation of Registration (when required to do so) or failing to surrender Registration certificates may also lead to a penalty of Rs 200 per day up to a maximum of Rs 25,000 under Section 86 (6).