Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Audit by department: Justified or not?

Service Tax - By: - Pradeep Jain - Dated:- 27-8-2016 - Introduction Audit - One of the most dreaded consequence of getting registered with the service tax department. Nobody wants to get strangled in the vicious circles of departmental audit and yet, sooner or later, you have to face the dungeon of audit. Times and now, questions have been raised on the qualifications and eligibility of the officers of the department to conduct audit, but the Government has proved to be adamant in continuing the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ent of anybody s service and payment of such service. Types of documents that can be asked to be made available on demand The assessee is required to furnish following documents on demand:- (i) Records mentioned in terms of Rule 5(2); (ii) Cost Audit Reports, if any, under Section 148 of the Companies Act, 2013; (iii) Income Tax Audit Report, if any, under Section 44AB of the Income Tax Act, 1961. Section 72A of the Finance Act (Special Audit) It is only where one of the three contingencies as 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

been secreted in a place; and such documents or books are useful or relevant for any proceedings. The dispute The service tax department undertakes audit at frequent intervals and all the records maintained by the service provider are scrutinized. The outcome is in form of audit paras, some genuine and some issued for procedural lapses, almost all result into issue of show cause notice. As the audit is an unwarranted situation, some of the assessees keep their fingers crossed and some opt for l .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ucted by the Department and only Special Audit within the Statute as mentioned under Section 72A of the Finance Act can be done either by a Chartered Accountant or Cost Accountant only in specified certain circumstances . It was further held that Service Tax Audit as envisaged in Rule 5A(2) of the Service Tax Rules does not have appropriate statutory backing of the Finance Act. Following the same decision, the service tax audit by departmental officers was denied in the cases of ACL Education Ce .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ecisions Circular No. 986/10/2014-CX dated October 9, 2014 was issued by the board which intended to clarify that judgment under the Travelite case does not deal with the issue of audit in the Central Excise. It was further clarified that there is adequate statutory backing for Audit by the Central Excise officers by virtue of Section 37(2)(x) of the Central Excise Act, 1944 and Rule 22 of the Central Excise Rules, 2002 for conducting Central Excise Audit. Notification No. 23/2014-ST dated Decem .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ice Tax Rules has legal backing. Therefore, it was clarified that the judgment of Travelite (India) is not applicable. Circular No. 995/2/2015-CX dated February 27, 2015 was issued by the CBEC on the subject - Central Excise and Service Tax Audit norms to be followed by the Audit Commissionerates . In this circular, directions were given to field formations regarding planning and conduct of audits and audit procedures to be followed. Thus, after judicial pronouncements quashing the validity of a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Audit? Whether substituted Rule 5A(2) of the Service Tax Rules, 1994 ( the Service Tax Rules ) is ultra vires the provisions of the Finance Act, 1994 ( the Finance Act )? In this case, M/s Mega Cabs Pvt. Ltd. ( the Petitioner ) received a letter in which it was intimated that the audit will be done of its service tax records by service tax officers in terms of rule 5(2) of the Service Tax Rules . Being aggrieved, the Petitioner filed a petition before the Hon ble High Court of Delhi, challenging .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by Notification No. 23/2014-ST dated December 5, 2014 , now the audit by service tax department has legal backing. The Delhi High Court analyzed the provisions of the Finance Act extensively and observed as under:- Rule 5A(2) of the Service Tax Rules, as amended, to the extent that it authorizes the officers of the Service Tax Department, the audit party deputed by a Commissioner or the CAG to seek production of the documents mentioned therein on demand, was held as ultra vires the Finance Act a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| 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