Types of Audit

1. Audit by Tax Authorities

2. Special Audit

Audit by Tax Authorities

1. Under What circumstances:- Not Specific, means order can be given under any circumstances.

2. Who can order:- Commissioner or any officer authorised by him.

3. What kind of order:- General or Special in GST ADT-01.

4. Period of audit:- Such period as prescribed in order. It shall be a financial year or multiple thereof.

5. Frequency of audit:- as given in order.

6. Manner of audit:- as prescribed. (Rules)

7. Place of Audit:- Registered office of the taxable person or office of the proper officer.

8. Notice period:- not less than 15 days .

9. Time Limit of Completed Audit:– three months from the date of commencement.

10. Extension of Time Limit of completed Audit:- extend to further period of 6 months

11. Who can extend:- Commissioner

12. How can extend:- The Commissioner should record the reason in writing.

13. What is the date of commencement of Audit:- Date when the documents or other information is made available or Actual institution of Audit at the place of business whichever is later.

14. Information for Audit:– O. may require the registered person

Afford the facility for the audit

To furnish such information and render assistance for timely completion of audit.

15. Time Limit of giving findings:- within 30 days of completing the audit.

16. What will be included in findings:– Findings, Right, obligation and the reason of the findings. (GST ADT-02).

17. Results of Audit:- In case of tax not paid, short paid , erroneously refund or wrong tax credit availed or utilised, action under section 73 or section 74.

Special Audit

1. Who can direct for special audit:- Officer not below the rank of assistant commissioner with prior approval of commissioner to the registered person to get his account audited . (GST ADT-03).

2. When such direction shall be made:- At the stage any scrutiny, inspection, inquiry or any  proceedings before him, having regard to the nature and complexity of the case and the interest of revenue.

♦ Value has not been correctly declared.

♦ Credit availed is not within the normal limit.

3. Who will conduct the special audit:- Chartered Accountant, Cost Accountant or person nominated by the commissioner.

4. Time Limit of Completion of special Audit and submit the report:- within 90 days

5. Extension of special audit:- further period of 90 days.

6. Who can apply for extension:- Registered person or Auditor

7. Opportunity of being heard:– The registered person shall be given the opportunity of being heard before the final audit report being submitted.

8. Who will pay the cost of special audit:- Expenses including remuneration shall be determined and paid by commissioner and such determination shall be final.

9. Results of Special Audit:- In case of tax not paid, short paid , erroneously refund or wrong tax credit availed or utilised, action under section 73 or section 74. (GST ADT-04).

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One Comment

  1. vipin says:

    IS RCM will attract if single expense head exceeds Rs.5000/- per day or aggreate of the whole expense heads exceeds Rs.5000/- per day ????

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November 2020