Assessment procedure

[Ganeshan Kalyani]

Dear Expert,

In the VAT regime assessment is deemed to happens if no notice is received from department within such prescribed time limit. If there is any reason to believe the assessment has not paid tax correctly or has short paid or has suppressed the turnover to evade tax, the department initiates assessment. Generally a notice is issued to the assessee to give an opportunity of being heard. Various details are demanded by the authority. Some requirements are in writing while some time verbal details are asked. We seek a clarification as to how the process of assessment is as per law. Whether is information sought by the authority should be in writing or it can be verbal. Experts request you to through some light with provision of law.

regards,

ganeshan

[DR.MARIAPPAN GOVINDARAJAN]

The tax is payable on self assessment basis. If there is provisional payment the same is subject to assessment of the authorities. Tax Authorities are having power to call for information/documents. Such requirements shall be in writing. If it is requested in oral we may ask them to give it in writing. Even if it is stressed to furnish information/documents by oral orders, we may send the information/documents in writing citing his oral request and date on which the request is made.

AI Summary

Self-assessment: tax authorities may call for information, and such requests should be made or memorialised in writing.
Tax liability operates on self-assessment, with provisional payments subject to assessment. Authorities have power to call for information and documents and ordinarily must issue written notices and provide opportunity of being heard. If demands are made orally, taxpayers should request written orders or respond in writing while citing the oral request and its date to preserve a formal record for the assessment process.