Whether audit can be posted within two years ?

[S RAMAN]

A SSI unit paying less than one crore in PLA have been audited by Excise Audit in 2014 and two years have not lapsed. Need to know whether they can post a reqular audit within two years??

[Mahir S]

Sir,

Those units paying PLA duty of ₹ 10 lakhs and above but less than ₹ 1 crore in a financial year are required to be normally covered once in 2 years. However, department may regularly conduct audit in respect of units pertaining to evasion prone items or based on any criteria relating to 'stand alone risk parameter' as well as 'local risk factors'.

You may request the audit department for postponement of audit but its always better to get audit conducted at regular intervals so that issues gets cleared at an early stage.

[DR.MARIAPPAN GOVINDARAJAN]

As pointed out by Shri S. Naveed audit will be conducted periodically. In case of any anti evasion or any reference from DRI then only the Audit will be conducted before the stipulated period. Before auditing you will be duly informed.

AI Summary

Audit periodicity: excise units normally audited biennially; earlier audits permitted for evasion or risk referrals.
Units with PLA duty payments within the specified middle band are normally covered by an audit once every two years, but earlier audits may occur for evasion prone items or on the basis of stand alone risk parameters, local risk factors, anti evasion leads, or referrals; taxpayers can seek postponement but are generally given prior notice.