Things You Must Know About Service Tax Audit
Government has the right to levy duties on anything and everything that they can justify on logical and moral grounds. Those who tend to come under the axe of tax however, allow themselves the liberty to not comply based on their own chosen excuse. In very simple words, the cat and mouse game of imposition and evasion is an everyday business in India. It so happens that at all times the other party seems to get stronger with their plans till the time the government slaps €audit' on those that seem to have shown way too much confidence in their defaulting skills. This 5 digit word can arouse terror in the hearts of all who have been treading the wrong path for a shamefully large number of years.
Once slapped, there is very little that one can do but comply willingly. This not done, the authorities will be sure that the concerned geniuses are hiding plump skeletons in the closet and impose stricter procedures on the same. However, understanding the process of this highly legal scrutiny into all things internal can help the concerned individual / business entity go through with the same, with considerable ease. To begin with, it is essential to know about the one who will approach the premises to conduct the scrutiny. The authorized professionals can be the jurisdictional central excise officer or, any party appointed by the CAG (Comptroller and Auditor General of India).
Next comes a list of rules that the concerned assesses will have to ensure for service tax audit before the process begins and while it is on. This is practically a no mercy situation where the non-complying assesses cannot expect to be entertained at any cost. As per Rule 5, the latter will have to provide all records that are asked for by the professionals at the time of the scrutiny. This is done mainly to safeguard the interest of the government as far as revenues are concerned. Not conforming in any way can amount to additional penalties.
Preparing for the service tax audit way before hand can help the concerned assesses to comply better. Keeping clear bills of all transactions of any nature whatsoever can help in offering a truer picture of all that is going on with the revenues of the entity, thus, helping the authorized professional carry on their duties easily and without useless deviations. This is crucial is forming a good record with the latter. The burden of conformity however, does not rest solely upon the shoulders of the involved entities. The government has spelt a number of ways which the audit conducting professionals are to bear in mind before embarking on their work.
To begin with, the latter have to show respect to the privacy and functioning of the entities. Thus, they are to ensure informing the latter with proper notice about the scrutiny 15 days beforehand. Secondly, the professionals cannot in any way impede the functioning of the concerned ventures while they are on the premises and thirdly, the months chosen for the purpose should be convenient to both the involved parties.
Once slapped, there is very little that one can do but comply willingly. This not done, the authorities will be sure that the concerned geniuses are hiding plump skeletons in the closet and impose stricter procedures on the same. However, understanding the process of this highly legal scrutiny into all things internal can help the concerned individual / business entity go through with the same, with considerable ease. To begin with, it is essential to know about the one who will approach the premises to conduct the scrutiny. The authorized professionals can be the jurisdictional central excise officer or, any party appointed by the CAG (Comptroller and Auditor General of India).
Next comes a list of rules that the concerned assesses will have to ensure for service tax audit before the process begins and while it is on. This is practically a no mercy situation where the non-complying assesses cannot expect to be entertained at any cost. As per Rule 5, the latter will have to provide all records that are asked for by the professionals at the time of the scrutiny. This is done mainly to safeguard the interest of the government as far as revenues are concerned. Not conforming in any way can amount to additional penalties.
Preparing for the service tax audit way before hand can help the concerned assesses to comply better. Keeping clear bills of all transactions of any nature whatsoever can help in offering a truer picture of all that is going on with the revenues of the entity, thus, helping the authorized professional carry on their duties easily and without useless deviations. This is crucial is forming a good record with the latter. The burden of conformity however, does not rest solely upon the shoulders of the involved entities. The government has spelt a number of ways which the audit conducting professionals are to bear in mind before embarking on their work.
To begin with, the latter have to show respect to the privacy and functioning of the entities. Thus, they are to ensure informing the latter with proper notice about the scrutiny 15 days beforehand. Secondly, the professionals cannot in any way impede the functioning of the concerned ventures while they are on the premises and thirdly, the months chosen for the purpose should be convenient to both the involved parties.
Source...