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?

[Mahir S]

Sir,

Under section 72A of the Finance Act, 1994, the powers are vested with the Commissioner for approval and for carrying out Apecial Audit. Hence, the Chartered accountant/cost accountant shall be appointed from the panel of such auditors available with the department, with due approval of the Honorable Commissioner.

AI Summary

Special audit under Section 72A: auditors appointed from the departmental panel subject to Commissioner's approval for service tax audits. Special audit appointments under Notification No. 23/2014 and the Service Tax (Third Amendment) Rules, 2014 require that nominated cost accountants or chartered accountants be drawn from the department's panel and obtain the Commissioner's approval under Section 72A. An assessee may not unilaterally choose a CA/CMA to replace a departmental nominee; any institute or empanelment nomination must result in a panel member approved by the Commissioner.