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C.No. II-39(241)/GST/dt-I/Spl.Audit/2019-20

Dated: 03-10-2019


Sub: Empanelment of CA/ICWA for Audit of Central Excise, Service Tax & GST Assessees

Attention of practicing Chartered Accountants and Cost Accountants is invited to the provisions of Section 14AA of the Central Excise Act, 1944, as made applicable to Service Tax vide Section 83 of the Finance Act, 1994, Section 72A of the Finance Act, 1994 and Section 66 of The Central Goods and Service Tax Act, 2017. The CGST, Audit – I Commissionerate, New Delhi, proposes to prepare a panel of Chartered Accountants and Cost Accountants so as to nominate them to conduct special audit of accounts of Central Excise, Service Tax and GST as envisaged under the said Section.

2. Eligibility: In order to be eligible to be nominated for said audit, a Person/Firm should fulfill the following conditions. The applicant firm/person should:

i. Be a member of the CA/IOWA and should have valid full time Certificate of practice issued by the respective institutes;

ii. Possess experience of at least five years of practice in the field of Central Excise & Service Tax/GST matters;

iii. Not have been held guilty of any professional misconduct under the Cost and Works Accountants Act, 1959 (as amended) or Chartered Accountants Act, 1949 (as amended) during past five years or penalized under Chapter V of the Finance Act, 1994 or Customs Act, 1962 or Central Excise Act, 1944 or The Central Goods and Service Tax Act, 2017;

iv. Not be facing any investigation or enquiry by the CBIC or any of its subordinate offices for any violations under the Service Tax Law or the Customs Act, 1962 or the Central Excise Act, 1944 or The Central Goods and Service Tax Act, 2017.

3. Selection procedure: The Selection will be as follows-

i. All the Applications received up to the last date shall be scrutinized by a Committee appointed by the Commissioner in terms of guidelines issued in this regard. The basic criteria for selecting the applicant would be the experience in audit/consultancy/representation in the Central Excise, Service Tax and GST matters. The selected candidates shall be called for an interview/discussion by a Committee of 3 officers for final empanelment. The final panel shall be notified and may be modified as and when required.

ii. Out of empanelled candidates, audits would be allotted to the firms/person as and when required by the department. Their performance would be monitored by examining the audit reports submitted by them.

iii. The panel so made above shall be in force for a period of two years. However, in case of necessity, new persons can be added in the panel by following the prescribed procedure.

4. Duties and Obligation: The Person/Firm so nominated to act as special auditor should have the following duties and obligations:

i. The audit shall be conducted as per the Terms of Reference Communicated by the Commissioner of CGST, Audit-1.

ii. The auditor may be required to visit the offices including branch office/head office of Central Excise/Service Tax/GST Assessees to conduct the Audit. They would be issued the requisite authorization by the office of CGST to call for and examine the required documents.

iii. The Audit shall be conducted in coordination with the departmental officers. In other words, the departmental officer shall also join the audit team of the nominated CA/IOWA to conduct the audit.

iv. The auditor, within the period specified by the Commissioner of CGST, Audit-1, shall submit a report of such audit duly signed and certified by him. The audit report shall provide full details of audit, including the audit plan, details of documents verified, result of verification, short levy/wrong availment of Cenvat Credit etc. duly quantified and with their observations. Duly authenticated copies of sample documents shall also be enclosed with audit report for taking further action by the department.

v, The nominated person/firm should not have represented or advised in any manner the assessee whose audit is ordered by the department in any area like maintenance of accounts, auditing, tax consultancy, any other consultancy, representation etc. and therefore should not be in a conflict of interest position. This aspect would be verified while assigning a particular assessee for audit and a certificate in this regard would be submitted before accepting the special audit.

On receipt of audit report, department may call the auditor for seeking any clarification or ask them to complete audit, if it is found that particular area has not been examined properly.

vi. The empanelled Chartered Accountants and the Cost Accountants shall give an undertaking at the time of allotment of units that they may not take up Statutory Audit of the said units allocated to them for special audit and also during the period they are on the panel of CGST Delhi Audit-I, department.

vii. The Auditor will not associate any junior staff in Central Excise/Service Tax/GST Audit except with due approval of CV of such person by the Department in writing.

5. Application Particulars: The Person/Firm desiring to be empanelled for such special audit shall apply in the annexed Proforma. The Expression of Interest may be addressed to “The Commissioner, CGST Audit — I Commissionerate, Central Revenue Building, I.P. Estate, New Delhi-110109”

6. Schedule of Fees:The Chartered Accountants/Cost Accounts so nominated is entitled to a fees depending upon the size of the unit under special audit. As per the present guidelines of CBIC, the Amount of such fees payable is as indicated below:

SI. No. Central Excise/Service Tax/GST paid by the unit during 2018-19 Fee Amount
1. Up to Rs. 10 Crore . Rs 15,000/-
2. Rs. 10 Crore to Rs. 100 Crore Rs 25,000/-
3. Rs. 100 Crore to Rs. 200 Crore Rs 35,000/-
4. Rs. 200 Crore and above Rs 50,000/-

The nominated person is also entitled for re-imbursement of travelling expenses as per the instructions in force. The Chartered Accountants/Cost Accountants shall submit his/her bill along with proper vouchers etc within one month from the date of submission of audit report.

7. General:

i. It is the sole discretion of the Commissioner, CGST Audit —I Commissionerate, Delhi to select any of the Chartered Accountants/Cost Accountants for conducting the Special Audit.

ii. This office reserves the right to remove name of any of the Chartered Accountants/Cost Accountants from the panel so made, after makings enquires as deemed fit and such decision would be final.

iii. This office also reserves the right to cancel/withdraw the express of interest without assigning any reason whatsoever.

The Last date of receipt of the application is 31/10/2019.

You s faithfully,

(Shubhagata Kumar)



1. Name and address of the person /Firm. In case of firm, please also provide total number of partners and names of partners who will be engaged in this assignment.

2. PAN — Permanent Account Number

3. Membership Number of ICWAI/ICAI along with date of becoming member of the institute.

4. Date of Birth in case of individual and date of incorporation in case of firm.

5. Address for correspondence including Contact Number/Mobile No. and E-mail ID.

6. Educational Qualification of member, who would be engaged in this assignment.

7. Experience in handling Central Excise, Service Tax and GST issues like advisory, audits, representational experience, etc., in the past 5 years. Please give write up.

8. Number of cases/articles with respect to Central Excise, Service Tax and GST matter published in Journals/Newspapers etc.

9. Gross receipts from professional practice during 2018-19.


I……………………………………………………………………. Proprietor/Partner of M/s. …………………………. do hereby declare that above mentioned information is true and correct to the best of my knowledge and belief.




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  1. SK FCA says:

    I also agree with Mr Virendra Khandelwal. We Chartered Accountants are being taken for granted by these govt organisations. They are taking benefit out of it through bidding or through such type of empanelments. Such way will either encourage the corruption,unethical practices or negligence by professionals. However ulimately whosoever will take up the assignment shall be heavily responsible.

  2. CA Manoj Yadav says:

    There is no clear basis for selection, scope of services is too much and fee is too little. Agree with idea of taking ICAI in loop. certainly not interested.

  3. CA Manoj Yadav says:

    There is clear basis for selection, scope of services is too much and fee is too little. Agree with idea of taking ICAI in loop. certainly not interested.

  4. sanjay tayal says:

    I am unable to understand how and on what basis or criteria is adopted for the fixation of the fees. The fees being fixed is not commensurate with the volume of work. It looks like that without audit and verification we have to just certify the records, for such paltry sum, which is against the principles of our practice.
    Certainly not interested

  5. Devender Khurana says:

    Dear Mr Khandelwal,

    I do agree with you, but sorry to say that many CA firms will apply without accepting the fact. If you ask them they will deny and also tell you not to apply. (So that there should be minimum competition).

  6. Rajendra Khandelwal says:

    See how our service value is devalued by this notification. Fee of Rs. 15000 onlu where service tax paid upto Rs. 10 Crores. This means Gross Value of Service will be Approx. Rs. 80.91 Crores. For Special Audit of such a huge transaction peanut amount is fixed as a remuneration. I request to all CA do not participate and send their names for empanelment for such an undervalue quote. DEAR ALL CA’S PLEASE ITS TIME TO UPGRADE OUR FEE BASED ON OUR KNOWLEDGE AND EXPERIENCES.

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