Special audit powers enable directed examination, nominated auditors, report submission, hearing rights and follow-up tax action.

An officer not below Assistant Commissioner may, with the Commissioner's prior approval, direct a registered person to have records examined in a special audit by a chartered or cost accountant nominated by the Commissioner, who must submit a signed audit report within ninety days (extendable for sufficient reason). The registered person has a right to be heard before material from the special audit is used against them. The Commissioner determines and pays audit expenses and remuneration, and detection of unpaid, short paid or erroneously refunded tax or wrongly availed input tax credit may lead to initiation of recovery or penalty proceedings.

---

---

---