audit under sec65

[AIJAZ KAZI]

my second query

the time period to finish the audit under sec 65 is 3 months with further extension of 6 months from the commissioner. the date starts from the day the documents asked by the dept and is submitted by the dealer or actual institution of audit at place of business now what this actual institution means.is it the day when the audit starts from the place of business of the dealer or visits done by audit officers when audit is done from the dept.

[KASTURI SETHI]

'The term, 'actual institution of audit'  means actual commencement of audit. The word, 'institution' refers to the initial action. 

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Sri Sethi.  The registered person is required to submit the documents within the time stipulated in the notice.  If the registered person submitted the documents then the audit starts from such date.  If the registered person does not supply documents the department can initiate audit at its own volition.  It is my view.

[Sadanand Bulbule]

Meaningful reply by the experts.

[AIJAZ KAZI]

thank you  experts for your valuable advice

AI Summary

Commencement of audit - audit period begins when documents are furnished or when audit is actually instituted at business premises.
The audit period under section 65 begins with the commencement of audit: either the date the registered person furnishes documents in response to a notice or, failing that, the date the department initiates on-site or desk audit activity at the taxpayer's place of business; extensions remain subject to the commissioner's statutory power.