Revision of thresholds for frequency of audit

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..... Rs. 10 lakhs and Rs. 1 crore Once in two years 3. Units paying below Rs. 10 lakhs Once in five years Besides, all Export Oriented Units (EOUs) are required to be audited mandatorily every year. For the categories at S. No. 2 3 above, the selection of units is to be based on a combination of unit-wise rupee risk calculations circulated by DC (Audit) and local risk parameters. For Service Tax: S. No. Quantum of annual duty payment (in cash + CENVAT Credit) Frequency of audit 1. Taxpayers paying more than Rs. 10 lakhs Every year 2. Taxpayers paying below Rs. 10 lakhs Not prescribed The selection of taxpayers at S. No. 2 above is to .....

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..... ying below Rs. 50 lakhs 10% of the units every year For the categories mentioned at S. Nos. 2 to 4 of the table above, the selection of units would continue to be based on the unit-wise rupee risk calculations circulated by DC (Audit) combined with local risk parameters, if any. 4. In respect of EOUs the Board has decided that about 500 EOUs should be audited mandatorily all over the country. It has also been decided that the selection of these units should be made as per the criteria circulated by DC (Audit). Based on the data available with this Directorate it is observed that this target would be achieved if each Commissionerate audits about 25% of the EOUs engaged in the manufacture of excisable goods that are registered .....

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..... 2. Taxpayers paying between Rs. 25 laths and Rs. 50 lakhs Once in two years 3. Taxpayers paying between Rs. 10 lakhs and Rs. 25 lakhs Once in five years 4. Taxpayers paying below Rs. 10 Iakhs 2% of the total number every year For the categories mentioned at S. No. 2 to 4 the selection of assessees would be based on Si parameter and local risk parameters mentioned in the Service Tax Audit manual. 6. The revised frequency norms may be implemented with immediate effect. However, units that have already been audited during the first quarter of this financial year need not be audited again even if they are due as per there revised norms. Any difficulties encountered in the imp .....

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