GST AUDIT IN UTTAR PRADESH

GST AUDIT IN UTTAR PRADESH

1.        TAX AUDIT BY DEPARTMENTAL AUTHORITIES

• Tax Audit for examining and verifying the claims

Tax audit shall be conducted for the purposes of:-

• examining the correctness of tax return or returns filed by a dealer or class of dealers; and
• verifying the admissibility of various claims including claim of input tax credit.

The Commissioner or any officer subordinate to him not below the rank of Joint Commissioner, may select the dealers or class of dealers for tax audit by departmental authorities.

1.2         Audit authorities nominated by Commissioner

The tax audit authority shall be posted or nominated by the Commissioner and shall be among the officers of the Commercial Tax Department not below the rank of an Assistant Commissioner.

1.3         Conduct & Manner of Audit should be prescribed by Commissioner

The Commissioner shall prescribe the modalities, manners and norms for selection and audit of dealers or class of dealers from time to time as he thinks fit.

1.4         Audit to be done by assessing authorities

Any officer, not below the rank of an assessing authority, appointed by:

• the State Government or
• the Commissioner

and posted in the audit wing of the department administering UPGST Act or any other officer authorised by the Commissioner in this behalf may, initiate tax audit of the

• records,
• stock in trade, and
• related documents of the dealers,

who are specified or selected in the manner prescribed under section 44(1).

NOTE: However, no audit shall be undertaken for any assessment year after expiry of a period of 3 years after the end of such assessment year.

1.5         Evasion of tax can lead to Audit of previous 3 years

In a case, where the officer making audit in respect of any assessment year is satisfied that the dealer has willfully suppressed any material fact leading to evasion of tax or has wrongly claimed any benefit, he may make audit for 3 consecutive assessment years prior to the assessment year in which audit is being conducted.

1.6         Documents to be produced before the officer

For the purpose of the tax audit, officer referred to in section 44(1) may require the dealer to produce before him records and other documents in his office.

However, where it is convenient, the officer may take up tax audit in the office, business premises or warehouse of the dealer.

1.7         Submission of Audit Report

After completion of the tax audit, the officer making the audit shall send audit report prepared by him to the assessing authority of the dealer.

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