AUDIT OF ACCOUNTS
- Persons who can do audit?
The Commissioner or any other Authority as may be authorised by him in this behalf may, for ascertaining the correctness of returns furnished, admissibility of various claims and ITC, on the basis of any prescribed criteria or on random basis, inspect or audit or cause to be audited any of the returns furnished, documents or statutory forms submitted by a dealer.
The audit shall be performed by the designated officers as a team. Such a team may consist of one or more Excise and Taxation Officer, Assistant Excise and Taxation Commissioner or Deputy Excise and Taxation Commissioner, as the Commissioner may deem fit
- Place of audit
The inspection or audit as required u/s 61(1), may either be under taken in the office of such Authority or in the business premises, or warehouse, or office of the dealer.
The audit shall, as far as possible, be conducted on the business premises of the dealer.
- Serving of Notice
For the purpose of audit of returns, annual statement and accounts, notice shall clearly state the period, date, time and place fixed for such audit. The notice shall provide a period of not less than 10 days for production of account books as specified in the notice.
Such person shall produce on the specified date and time account books as specified in the notice. The notice shall provide a period of not less than 10 days for production of account books as specified in the notice.
- Co-operation from Dealer
During the course of the audit, the officer or authority may require the dealer to afford him the necessary facility to inspect/ verify the account books for the period in the notice. The dealer shall also provide his explanation to the queries asked by such officer or authority.
- Final Decision
The prescribed authority shall after considering all the evidences produced in the course of proceedings either:
(a) confirm the self-assessment u/s 21(1); or
(b) not confirm the self-assessment u/s 21(1) and calculate the amount of tax due from the dealer; or
(c) calculate the amount of tax due from a dealer, if no such assessment has been made.
Provided that if the prescribed authority proposes to rely upon any evidence collected by him in the course of inspection, audit or investigation, the dealer shall, by a notice, be afforded an opportunity of correcting his self assessment within a period not exceeding 30 days and if he fails to rectify his self-assessment, such authority shall re-assess the tax due under the Act.
- FAQ on website of Department
- Will all Returns filed be picked up for audit or scrutiny?
- No, a transparent criteria will be evolved under which small number of cases will be picked up for scrutiny to check malpractices.
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