TaxTMI 
TaxTMI 
Guidelines regarding Structure, Administrative set up and Functions of Audit Commissionerates - reg
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....f Audit Commissionerates - reg On implementation of cadre review there would be 23 Central Excise Zones and 4 Service Tax Zones with each zone having one or more Audit Commissionerates. Each Audit Commissionerate would cover assessees registered under the jurisdiction of 3 to 5 Executive Commissionerates. Principal Chief Commissioner and Chief Commissioner shall assign the jurisdiction of Audit Commissioner in the zone, decide the location of Audit Commissionerates and its subordinate offices. Following guidelines may be followed while finalizing the location and organizational structure of Audit Commissionerate and its subordinate offices, subject to deviations needed to cater to the local requirements. Location of Audit Commissioner....
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.... of cluster of assesses. While assigning assessees to the subordinate office, assessees with same PAN number should be assigned to one subordinate officer. Configuration of Audit Commissionerate: 3.1 Audit Commissionerate would comprise of a Headquarters similar to an Executive Commissionerate and subordinate offices proposed to be called Circles similar to a Divisions. The Circles would be headed by a Deputy or Assistant Commissioner. The Circles would comprise of Audit Groups equivalent to the Range offices which would have Superintendents and Inspectors. 3.2 Audit Commissioner would be Head of the Department and the headquarters would have two Additional or Joint Commissioners, who are in turn would be supporte....
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....harge of Circles. Each Audit Commissionerate may have 6 to 7 Circles under its jurisdiction. 3.5 The Circles would be assigned the geographical jurisdiction of either an entire Commissionerate or some Divisions of an Executive Commissionerate. 3.6 Division of the jurisdiction of an Executive Commissionerate between two Audit Commissionerates / Audit circles should be avoided. 3.7 In addition to geographically defined Circles, the Audit Commissionerates may have functionally oriented Circles for conducting Theme/Issue based audit (for example Insurance, telecom, Banking services or specific commodities etc) and its territorial jurisdiction should cover the jurisdiction of the entire Audit Commissionerate. Organi....
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.... vest with the Audit Commissioner. Approved audit objections including those in which show cause notices are proposed to be issued should be conveyed to the Executive Commissioner in the form of Minutes of the MCMs, who shall respond to these objections conveying his agreement/disagreement within 15 days of the receipt of the minutes of the MCM. 5.2 On points of difference, further consultations may be held for a maximum period of 15 days. In case the difference persists, the final decision to issue show cause notice rests with the Audit Commissioner. 5.3 Audit Commissionerate shall issue the show cause notice, wherever necessary, after the audit objections are confirmed in the MCMs. The show cause notice shall be answerable to and ad....
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....it Commissionerates may refer, with the approval of the MCM, any case arising out of audit where detailed investigation is necessary to the Executive Commissionerates. 5.8 Special Audit shall be ordered by the Audit Commissionerates. Section 14A / 14AA of CEA, 1944 and Section 72A of the Finance Act, 1994 provide for such special audits in the specified circumstances by Cost Accountants / Chartered Accountants. The Audit Commissioners shall be the competent authority to order Special Audit, either on their own satisfaction or on a reference received from the Executive Commissioner. 5.9 Audit should be so conducted that the assessee is least inconvenienced. Documents as prescribed in the manual should be called and pr....
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....iple OSPCA would be also be carried out by the designated Central Excise or Service Tax Audit Commissionerate, in an integrated manner. 5.11 It is proposed to issue risk based audit norms in due course of time. In the interim the existing audit norms may be used to ensure that audit functions continue efficiently. Transfer policy and capacity building: 6.0 Audit requires specialized skills in accountancy and handling of financial / SAP or ERP related databases apart from domain knowledge of Central Excise, Service Tax and Customs law and procedures. The officers need to gain knowledge of compliance requirements under Income Tax, Companies Act, VAT laws to do a comprehensive and meaningful audit. The officers who h....