Special audit power enables directed examination of records to verify declared value and input tax credit, triggering tax recovery.

Special audit enables an Assistant Commissioner, with Commissioner approval, to direct a registered person to have records examined by a nominated chartered or cost accountant where declared value or input tax credit appears incorrect; the nominated accountant must submit a signed, certified report within a prescribed timeframe, with a possible extension for sufficient reason. The registered person has the right to be heard before material from the special audit is used against them. The Commissioner determines and pays audit expenses, and findings that detect unpaid or short-paid tax or wrongly availed input tax credit may lead to initiation of statutory recovery procedures.

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