Regarding services tax

[Guest]

Dear Sirs,

Please update still old services tax audit is running from 2014 to jun 2017., or it has been closed after GST started. what is new ruls for services tax audit.

[Rajagopalan Ranganathan]

Sir,

According to Section 174 (2) (e) of CGST Act, 2017 The repeal of the said Acts (Central Excise Act, 1944 etc. ,) and the amendment of the Finance Act, 1994 (32 of 1994) (hereafter referred to as “such amendment” or “amended Act”, as the case may be) to the extent mentioned in the sub-section (1) or section 173 shall not -

affect any investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and any other legal proceedings or recovery of arrears or remedy in respect of any such duty, tax, surcharge, penalty, fine, interest, right, privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any such investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and other legal proceedings or recovery of arrears or remedy may be instituted, continued or enforced, and any such tax, surcharge, penalty, fine, interest, forfeiture or punishment may be levied or imposed as if these Acts had not been so amended or repealed;

Therefore service tax audit for the period 201 to June 2017 can be conducted by the Department even after coming into force of CGST Act, 2017.

[KASTURI SETHI]

Yes. Audit is being conducted by the department as per law. No further details are required to be given as Sh.Ranganathan, Sir has replied in detail.

[Ganeshan Kalyani]

Service tax department are conducting the audit so as to close all cases.

AI Summary

Continuation of pre GST service tax audits remains lawful under GST transitional provisions, permitting ongoing investigations and recoveries. The GST enactment preserves existing investigations and proceedings so that ongoing service tax inquiries, verifications (including audit), assessments, adjudications and recoveries relating to the pre GST period may be instituted, continued or enforced despite repeal or amendment of prior fiscal statutes; accordingly, departmental service tax audits for the pre GST period remain legally permissible and are being conducted to close outstanding cases.