TaxTMI 
TaxTMI 
GUIDELINES FOR CONDUCTING AUDIT OF MULTI LOCATION UNITS (MLU) AND MULTI LOCATION SERVICE PROVIDERS (MLSP)
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....in which the co-ordination of audit has to be done as detailed below: i. in case there is only one Audit Commissionerate in the PCC/CC Zone- identify all the assessees/tax payers, with a common PAN , in the jurisdiction of the Audit Commissionerate and audit of all the units should be covered simultaneously even though the assessees/tax payers are falling under different Audit Circles. ii. in case there are multiple Audit Commissionerates in the PCC/CC Zone- Audit of such assessees/tax payers should be covered/scheduled simultaneously by the coordinating Audit Commissionerate (to be decided by the PCC/CC based on the jurisdiction of the highest Duty/Tax Paying Unit). iii. In case of Registrants falling in multiple PCC/CC Zones - The Z....
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....e providers providing evasion prone services and showing adverse revenue trend or selected randomly. (ii) The Zonal ADG (Audit) would send short listed assessees/taxpayers for coordinated/simultaneous audit to the Audit Commissionerate. (iii) On receipt of such a list from the Zonal ADG , the Audit Commissioner should send the information maintained in electronic/ 'soft-form' from the Assessee/Tax Payer's Master File in respect of thoseMLUs/MLSPs to the Zonal ADG. (iv) The Zonal ADG should finalise the list of such MLUs/MLSPs selected for co-ordinated audit by 31st May every year so that such assessees/taxpayers are not covered in the annual Audit schedule prepared by the Audit Commissionerate.Actual audit verification may generally b....
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....ed balance sheet, Profit & Loss Statement and other financial documents of the company from the Head Office/ Corporate Office for scrutiny. Once the audit plans for all the Assessees/Taxpayers forming part of the MLU/MLSPs group are received, the ADG, if necessary, may convene a meeting with representatives (one per Group) of each Audit Group for finalization of audit plans. This would also be an opportunity for the ADG to explain the nature of relationship between the constituent Assessees /tax payers and common issues to be verified during the audit. Similarly, the Audit Groups of the Commissionerates may have identified certain issues that would need to be verified from the records / documents maintained at other units. The final audit p....