Visits of central excise officers (service tax cell) to premises of assessee for conducting audit-reg. - Service Tax - 19/13/96

This Circular has been rescinded by Circular No. 93/4/2007-ST, Dated: May 10, 2007 CIRCULAR NO 19/13/96 ST.DT-21.11.1996 Visits of central excise officers (service tax cell) to premises of assessee for conducting audit-reg. Attention is invited to Service Tax Circular No. 1/1/94 dt.29.06.1994 issued from F.No. 137/1/94-Cx.4 under which it was decided that no visits should be made by the Central Excise Officers to the premises of the assessees of service tax for carrying out any routine checks. Feedbacks have since been received from field formations regarding visits by the Central Excise Officers to the premises of assessees of service tax for carrying out any routine checks and Audit by the internal audit wing of the Commissionerates to ascertain whether the assessee is functioning in conformity with the Law. 2. Board has been considering the issue for some time past and it has been decided that (i) Visit for purposes of rectification of mistake under Section 74 of Finance Act, 1994 may be conducted by the Service Tax Cell with prior approval of the Commissioner (Central Excise) once in every two years; (ii) Audit of accounts/records relating to telephones, Insurance and stock brokers shall be conducted once a year; (iii) For auditing accounts/records of stock brokers, the following norms may be applied: (a) Stock brokers who pay service tax not exceeding Rs. Five lath per annum 10% of such registered stock brokers shall be selected and 10% selective check of their documents be conducted. (b) Stock brokers who pay service tax exceeding Rs. Five laths but not exceeding Rs. Fifty lakhs per annum - 20% of such stock brokers shall be selected and 10% selective check of their documents be conducted. (c) Stock Brokers who pay service tax exceeding Rs. Fifty laths per annum - 50% of such brokers shall be selected and 20% selective check of their documents be conducted. 3. The Circular No. 1/1/94 dated 29.06.1994 stands modified to the above extent. 4. Suitable instructions may please be issued in this regard to field formations.