Special audit powers enable Commissioner nominated audit of records with paid expenses and potential tax demand consequences.

Special audit permits a senior officer, with Commissioner approval, to direct a registered person to have records audited by a Commissioner nominated chartered or cost accountant when declared value or input tax credit appears incorrect; the nominated auditor must deliver a signed report within ninety days (extendable for sufficient reason), the taxpayer receives an opportunity to be heard before audit material is used in proceedings, the Commissioner determines and pays audit expenses, and detection of unpaid or short paid tax or wrongly availed input tax credit may lead to tax demand and recovery action.

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