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TMI BlogJoint AuditX X X X Extracts X X X X X X X X Extracts X X X X ..... hematic audit may also be entrusted with the work of coordinating joint audit. The Coordination Committee may select certain taxpayers for joint audit out of the database provided by GSTN. It is proposed that the taxpayers may be selected for joint audit based on clear and mutually agreed criteria/risk parameters between different tax administrations. 8.2.3 Examples of criteria for selection of taxpayers for joint audits :- * Registration in two or more GST Tax administrations. * Entities above a certain turnover aggregate threshold, for example, more than Rs. 100 Crore. * Taxpayers dealing in the service industry, having national or multi state operations. Inter-agency coordination failure in the aforementioned cases may lead to la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... andard Operating Procedure for conducting Joint Audit a) The Co-ordination Committee shall select the multi-locational taxpayers for joint audit and communicate the same to the concerned Supervisory Committee. This should be done no later than the month of February for the next financial year. This Committee in turn will intimate the jurisdictional Audit Authorities to allocate the selected taxpayer to a particular audit group forconduct of audit. b) The nominated Audit group shall request the taxpayer for providing necessary documents viz. Balance sheet(s), 3 CD reports (statement of particulars required to be furnished under Section 44AB of the Income Tax Act, 1961), profit and loss statements, income tax returns etc. The concerned aud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd their draft audit para(s) to the Supervisory Committee for vetting. Before vetting the draft audit para(s), this Committee may also hold a meeting (physical/virtual) with concerned audit groups. The Committee may also point out certain additional areas which need to be looked into by the audit groups before finalising the audit paras. g) The Supervisory Committee shall, before finalising the audit paras, resolve any inconsistency or conflicting interpretations on any point of law made by the different audit teams and recommend modification of such interpretations accordingly and the audit teams shall suitably incorporate them in their report. h) Once draft audit para(s) are vetted by the Supervisory Committee, the audit group(s) shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riate interest and penalty, if any. l) As regards unpaid/short paid GST is concerned where the tax payer is not in agreement with the audit para and is not willing to pay outstanding GST along with interest and penalty, the audit group shall prepare demand cum show cause notice to be adjudicated by the appropriate Tax Officer. Before issue of demand cum show cause notice, the taxpayer may be given pre-consultation so as to give him/her one more opportunity to explain his/her point of view to the senior tax officers before a final decision is arrived at. The Tax Authorities may also use this opportunity to explain the department's on view point to the taxpayer and encourage him/her for voluntary compliance. This will reduce unnecessary liti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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