Revision of thresholds for frequency of audit in respect of Central Ex cise and Service Tax audits - Regarding.

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....of audit 1. Units paying more than Rs. 1 crore Every year 2. Units paying between Rs. 10 lakhs and Rs. 1 crore Once in two years 3. Units paying below Rs. 10 lakhs Once in five years Besides, all Export Oriented Units (EOUs) are required to be audited mandatorily every year. For the categories at S. No. 2 & 3 above, the selection of units is to be based on a combination of unit-wise rupee risk calculations circulated by DC (Audit) and local risk parameters. For Service Tax: S. No.   Quantum of annual duty payment (in cash + CENVAT Credit) Frequency of audit   1. Taxpayers paying more than Rs. 10 lakhs Every year 2. Taxpayers paying below Rs. 10 lakhs Not prescrib....

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....its paying below Rs. 50 lakhs 10% of the units every year For the categories mentioned at S. Nos. 2 to 4 of the table above, the selection of units would continue to be based on the unit-wise rupee risk calculations circulated by DC (Audit) combined with local risk parameters, if any. 4. In respect of EOUs the Board has decided that about 500 EOUs should be audited mandatorily all over the country. It has also been decided that the selection of these units should be made as per the criteria circulated by DC (Audit). Based on the data available with this Directorate it is observed that this target would be achieved if each Commissionerate audits about 25% of the EOUs engaged in the manufacture of excisable goods that are registered ....