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Frequency Norms of Audit for Service Tax Assessees

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....requency Norms of Audit for Service Tax Assessees<br> Query (Issue) Started By: - Ritu Chauhan Dated:- 29-1-2015 Last Reply Date:- 29-1-2015 Service Tax<br>Got 1 Reply<br>Service Tax<br>Director General of Audit, New Delhi has prepared Service Tax Audit Manual, 2010. As per the guidelines, tax payers whose annual service tax payment (including cash and CENVAT) was &#8377; 3 crore or more in the pr....

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....eceding financial year may be subjected to mandatory audit each year. It is preferable that Audit of all such Units is done by using Computer Assisted Audit Program (CAAP) techniques. The frequency of audit for other taxpayers would be as per following norms:- * Taxpayers with Service Tax payment above &#8377; 3 crores (Cash + CENVAT) (MANDATORY UNITS) - to be audited every year. * Taxpayers w....

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....ith Service Tax payment between &#8377; 1 crore and &#8377; 3 crores (Cash + CENVAT) - to be audited once every two years. * Taxpayers with Service Tax payment between &#8377; 25 lakhs and &#8377; 1 crore (Cash + CENVAT) - to be audited once every five years. * Taxpayers with Service Tax payment upto &#8377; 25 lakhs (Cash + CENVAT) - 2&#37; of taxpayers to be audited every year. The Audit s....

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....election guidelines, therefore, would apply to the non-mandatory taxpayers, forming part of the discretionary workload. These taxpayers should be selected on the basis of assessment of the risk potential to revenue. This process, which is an essential feature of audit selection, is known as Risk Assessment. It involves the ranking of taxpayers according to a quantitative indicator of risk known as....

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.... a "risk parameter". It is also suggested that the taxpayers whose returns were selected for detailed scrutiny, may not be taken up for Audit that year, to avoid duplication of work. Similarly, the taxpayers who have been selected for Audit, may not be taken up for detailed scrutiny of their ST-3 Returns during that year. The Service Tax Audit Manual, 2010 is in the process of finalization and p....

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....ublication by D.G. Audit, New Delhi. In the circumstances, till the same is published, the existing instructions on audit shall continue. http://www.raaas.com Reply By PAWAN KUMAR: The Reply: Thanks for sharing the audit norms.<br> Discussion Forum - Knowledge Sharing ....