Audit under Service Tax as per Notfn. No. 23/2014 by a cost accountant or chartered accountant nominated under section 72A of the Finance Act, 1994

[Vinay Kunte]

As per the provisions of Rule 2 of Service Tax (Third Amendment) Rules, 2014 brought into effect Notification No. 23/2014, Every Assessee shall, on demand make available to the officer empowered under sub-Rule (1) or the audit party deputed by the Commissioner or the Comptroller and Auditor General of India, or a cost accountant or chartered accountant nominated under section 72A of the Finance Act, 1994.

Now. the query is, will the Commissioner appoint the Chartered Accountant / Cost Accountant within his jurisdiction for conducting Audits under Service Tax? Will he ask the empanelment committee to nominate the auditors? Will the Auditors be nominated by the Institute in each commissionerate?

Is the Assessee allowed to get the audit conducted under Service Tax from a CA / CMA of his choice just as in case of VAT Audits / Tax Audits?

AI Summary

Commissioner Authorized to Appoint Auditors for Service Tax Audits Under Finance Act, 1994, Section 72A A discussion on the appointment of auditors for Service Tax audits under Notification No. 23/2014 and section 72A of the Finance Act, 1994, raises questions about whether the Commissioner will appoint auditors within their jurisdiction or rely on an empanelment committee or institute nominations. The query also asks if assessees can choose their auditors like in VAT or Tax Audits. The response clarifies that the Commissioner has the authority to approve and appoint auditors from a departmental panel, with necessary approval from the Commissioner.