Revision of thresholds for frequency of audit

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....irected to say that the frequency for audit of Central Excise and Service Tax assessees, currently prescribed in the respective Audit Manuals, is a under: For Central Excise: S.No. Quantum of annual duty payment in cash Frequency 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. Un....

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.... has been prescribed in the Manual that the top 2 assessees from the top 20 duty paying services in each Commissionerate should be selected for audit each year, as an interim measure. 2. Owing to the fact that payment of duty through CENVAT credit is quite substantial in many industries, a more representative selection can be achieved in Central Excise by using the total duty payment (i.e. cash....

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..... 50 lakhs and Rs. I crore Once every five years 4. Units 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 decide....

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....erate should be arranged in descending order of this total value and the top 25% should be selected for audit from the list. Thus, EOUs with a higher value of inputs/capital goods received in a year should be given priority over an EOU having a lower value. EOUs manufacturing non-excisable goods (such as primary produce or software) need not be audited mandatorily. However, the order of selection ....