Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

MANAGEMENT OF CENTRAL EXCISE AND SERVICE TAX AUDIT

Service Tax - Central Excise and Service Tax Audit Manual - CBEC - 02 - CHAPTER 2 2.1 Audit management requires planning and effective execution of the audit process. Structurally and functionally, this is to be undertaken at two levels - apex level and local level. In order to monitor, co-ordinate and guide the effective implementation of the audit system, the Board has set up the Directorate General of Audit as the nodal agency. At the local level, management of audit is entrusted to Audit Com .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lso to evolve and improve audit techniques and procedures through a periodic review. With the help of its Zonal units, the Directorate General of Audit regularly monitors Central Excise and Service Tax audits conducted by the Commissionerates to ensure that the coverage of Assessees/Taxpayers is adequate in number and is reflective of their risk profile and to ensure that these audits are conducted in accordance with the letter and spirit of EA 2000 methodology. To achieve this, the Directorate .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

stic view of the internal audit and to formulate proposals to remove bottlenecks and obviate the scope of irregularities. 2.2.2 The selection of assessees and taxpayers would be done based on the risk evaluation method prescribed by the Directorate General of Audit. The risk evaluation method would be separately communicated to the Audit Commissionerates during the month of May / June of every year. The risk assessment function will be jointly handled by National Risk Managers (NRM) situated in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Audit Commissionerates of the zone. The role of this office in the overall management of audit is as follows: i. Collection, compilation and analysis of the data received from Audit Commissionerates and communication of the same to the respective Zonal Additional Director General (Audit) and to the Director General (Audit) wherever specifically asked for. ii. Review of performance of the Audit Commissionerates. iii Dissemination of information pertaining to audit to the Audit Commissionerate .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

egularly examining the conduct of audits and results thereof. viii. Posting/allocating the officers with requisite experience and expertise in conducting audits/analysing financial statements, to the Audit Commissionerates, ensuring equitable distribution of officers for improving coverage. ix. To take a final decision in cases, other than finalisation of audit objection, where there is difference of opinion between Audit Commissioner and Executive Commissioner. x. Also, to resolve issues that m .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

available to all Audit Commissionerates in the zone and the officers trained in CAAP techniques are retained for a sufficiently long tenure. 2.4 Functions of an Audit Commissionerate: The Audit Commissionerate comprises of the following sections: i. Planning and coordination section: To schedule and to provide support in conduct of Monitoring Committee Meetings (MCM); to maintain and to keep a copy of assessee master file and update it in coordination with the audit groups of circles; to mainta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ve, allowances, budgetary grants, vigilance matters etc. iii.Technical section: To attend to draft show cause notices, audit follow up, court cases, and maintain Board s circulars, instructions etc. iv. Risk Management and Quality Assurance section: To attend to risk based selection of units, use of third party source of information, to maintain Audit database of units to be audited, to identify themes/issues for audit, to evaluate and scrutinize working papers and to look after the work related .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

metro cities and in cases where Circles are situated at a distance from Headquarters, one stationary MIS group will look after the work relating to Planning and Co-ordination. 2.5 Role of senior officers of Audit Commissionerate 2.5.1 Commissioner i. To ensure selection of assessees/taxpayers, to be audited during the year, on the basis of risk assessment in consultation with the Directorate of Audit, after applying local risk factors. ii To approve the Desk Review and Audit Plan, in respect of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

pect of the accepted objections. iv. To ensure that MCM is held by using the offline Audit Report Utility and no paper based audit report is prepared.Also to ensure that after the MCM, each Audit Report Utility is uploaded in ACES v. To liase with DG (Systems) to ensure that EDW data and ACES data is available to the auditors vi. To ensure that requisite follow-up action i.e. recovery, issue of show cause notice is taken. vii. To review audit performance and to take steps for improvement. viii.T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l ADG (Audit) or Director General (Audit) as prescribed from time to time. xiii. To order special audit in terms of Section 14AA of the Central Excise Act, 1944, and Section 72A of the Finance Act, 1994, on his own or on the basis of a reference received from the Executive Commissioner. xiv. To send a list containing details of show cause notices issued by the Audit Commissionerate (including Circles), during the month, to each of the Executive Commissionerates, on monthly basis. xv. To ensure C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to theme based audit, audit of MLUs/MLSPs etc. ii. To approve the desk review and audit plan, in respect of all the large and medium units, other than the top 5 units that are to be approved by the Commissioner, after ensuring that all the steps have been completed. iii. To review audit plans approved by the Deputy/Assistant Commissioners of circles, in respect of small units. iv. To interact with large assessees/taxpayers at the time of audit in order to share major audit findings and complianc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

red. x. To ensure scrutiny of NIL DARs in the audit circle 2.5.3 Deputy/Assistant Commissioners in-charge of Sections of Audit Commissionerate Headquarters To supervise the work relating to the respective sections of Headquarters viz., Planning and Co-ordination Section, Administration, Personnel and Vigilance Section, Technical Section and Risk Management and Quality Assurance Section and theme audit. To ensure that the Audit Report Utility is used in MCM and the reports are uploaded in ACES an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. v. To issue show cause notices answerable to Deputy/ Assistant Commissioner of the Executive Commissionerate under intimation to Audit Commissionerate Hqrs. vi.To prepare and forward draft show cause notices, answerable to Joint/Additional Commissioner and Commissioner, to Audit Commissionerate Headquarters. vii.To approve and issue draft audit reports before attending the MCM meeting. viii. To issue final audit reports after approval in the MCM meeting. 2.6 Role of Executive Commissionerate: .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

wherever required; v. To attend to the work related to pre-audit, post audit of refunds, rebates and brand rate fixation of drawback; vi. To attend to the work related to CERA; vii. To send proposal to the Audit Commissioner, for special audit of an assessee, in terms of Section 14AA of the Central Excise Act, 1944 and Section 72A of the Finance Act, 1994 in deserving cases; viii. To pursue recovery of amounts in respect of pending paras admitted by the party (in writing), basing on the referenc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

udication of show cause notices issued by the Audit Commissionerates. 2.7 Staffing norms for Audit Commissionerate: i. Headquarters shall be headed by one Commissioner with the assistance of two Additional or Joint Commissioners and three or four Deputy Commissioners. ii. Normally, officers selected and posted to the Audit Commissionerate should be allowed to continue to function in the Commissionerate for a minimum period of two years and maximum of four years. iii. The supervising officer of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e units before conducting audit.In case of LTUs, the Principal Commissioner/ Commissioner should interact with the management of the unit. vi. Audit circle comprises of one stationary audit group (MIS) to look after the work relating to planning and co-ordination section of Hqrs Office, such as MCM, maintenance of Assessee Master Files, processing of draft show cause notices, attending to follow up work etc. and deployment of audit groups for conduct of audit. vii. The Audit Groups deployed for .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed audits b. 25% of manpower for medium units c. 15 % of manpower for small units d. 20% of manpower for planning, coordination and follow up. 2.8 Auditors Profile: Profile of each of the auditor posted in the groups should be available in the Audit Planning and Coordination Cell of Circle, in the following proforma. i. Name of the officer. ii. Designation. iii. Experience in the department. iv. Professional qualification, if any. v. Experience in Central Excise Range/ Service Tax formation or D .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nues to be posted in the Audit Groups.Auditors profile facilitates effective deployment of auditors to units by taking into account appropriate skill levels, training, educational background of the auditor etc. 2.8.2 The formation of audit groups is a critical component of audit management. The cadre controlling authority in-charge of the Audit Commissionerate shall ensure that the officers with the requisite skill and experience are posted to Audit Commissionerates depending on the availability .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version