News Flash
  • Marks Declared: Marks of Deptt. Exam. for Inspectors of Central Tax held in 06.08.2019 to 09.08.2019 declared. Nodal Officers may download marks-sheet from their dashboard under www.nacenkanpur.gov.inalong with forwarding letter.
  • Two-Days' Training on "Data Analytics" for Group 'A' and Group 'B' officers of CBIC, from 12th December to 13th December, 2019, at NACIN, Faridabad. - Click here
  • Draft RRs of Executive Assistant to be placed on CBIC website for 30 days for inviting comments from stakeholders - Click here
  • An advertisement invitation for expression of interest for supplying of electrical power backup/inverter. - Click here
  • Master Refund Circular No. 125/44/2019-GST dated 18.11.2019 issued super ceding earlier refund circulars
  • Circulars clarifying various issues related to GST issued
  • General Election to the Legislative Assemblies of Jharkhand, bye-elections, 2019- relieving of Expenditure Observers. - Click here
  • New Central tax notifications issued on 14th November, 2019
  • One Day Training Programme on "Human Rights" for Group 'A' and Group 'B' officers of CBIC, on 09th December, 2019 at NACIN, Faridabad - Click here
  • Forms GSTR-9 and GSTR-9C have been simplified and last date for filing extended for 2017-18 and 2018-19 - Click here
  • Inviting suggestions from Industry and Trade Associations for Budget 2020-21 regarding changes in direct and indirect taxes - Click here
  • Transfer/Posting in the grade of Assistant /Deputy Commissioner- Compliance thereof - Click here
  • Guidelines for candidates for GSTP exam on 12.12.2019. - Click here
  • CBIC mandates quoting of DIN in all communications from 8th November, 2019 - Click 'Customs circular 37/2019' and 'GST/CEx/ST circular 122/41/2019' for details
  • DIN IT Application will be operational on DDM website from 08.11.2019 - Click here
  • Final AISL in respect of Junior/ Senior Translator (till 06.06.2013) under CBIC has been uploaded on website of DGPM: Establishment->Hindi Translators. Please check the related website: http://dgicce.nic.in/- - Click here
View all

Frequency Norms of Audit for Service Tax Assessees

            Director General of Audit, New Delhi has prepared Service Tax Audit Manual, 2010.  As per the guidelines, tax payers whose annual service tax payment (including cash and CENVAT) was Rs.3 crore or more in the preceding financial year may be subjected to mandatory audit each year.  It is preferable that Audit of all such Units is done by using Computer Assisted Audit Program (CAAP) techniques.  The frequency of audit for other taxpayers would be as per following norms:-

  1. Taxpayers with Service Tax payment above Rs.3 crores (Cash + CENVAT) (MANDATORY UNITS) - to be audited every year.
  2. Taxpayers with Service Tax payment between Rs.1 crore and Rs.3 crores (Cash + CENVAT) - to be audited once every two years.
  3. Taxpayers with Service Tax payment between Rs.25 lakhs and Rs.1 crore (Cash + CENVAT) - to be audited once every five years.
  4. Taxpayers with Service Tax payment upto Rs.25 lakhs (Cash + CENVAT) - 2% of taxpayers to be audited every year.

 

The Audit selection guidelines, therefore, would apply to the non-mandatory taxpayers, forming part of the discretionary workload.  These taxpayers should be selected on the basis of assessment of the risk potential to revenue.  This process, which is an essential feature of audit selection, is known as Risk Assessment.  It involves the ranking of taxpayers according to a quantitative indicator of risk known as a "risk parameter".  It is also suggested that the taxpayers whose returns were selected for detailed scrutiny, may not be taken up for Audit that year, to avoid duplication of work.  Similarly, the taxpayers who have been selected for Audit, may not be taken up for detailed scrutiny of their ST-3 Returns during that year.

 

The Service Tax Audit Manual, 2010 is in the process of finalization and publication by D.G. Audit, New Delhi. In the circumstances, till the same is published, the existing instructions on audit shall continue.

****